Eugene Y.J. Chen

Chief Secretary

Bureau of Foreign TradeNovember 19, 2015

Taiwan’s Economic Situation

Taiwan’s Unique Advantages in Global Markets

Trade and Economic Relationships between

Belgium and Taiwan

Potential Business Opportunities for Belgium and

Taiwan

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Taiwan’s Economic

Situation1

GDP US$ 529.6 billion (2014)

Economic Growth Rate

2.70% (2016 forecast);

1.56% (2015);

3.77% (2014)

Unemployment Rate 3.89% (Sep. 2015); 4.12% (2014)

Consumer Price Index 0.28% (Sep. 2015); 1.20 % (2014)

FDI

US$ 3.31 billion (Jan.-Sep. 2015);

US$ 5.77 billion (2014);

US$ 134.4 billion (1952-2015.07)

Total Trade ValueUS$ 428 billion (-13%) (Jan.-Oct. 2015)

US$ 588 billion (2.15%) (2014)

Total Export ValueUS$ 236 billion (-9.6%) (Jan.-Oct. 2015)

US$ 314 billion (2.70%) (2014)

20th largest in the world

Total Import Value US$ 192 billion (-16.8%) (Jan.- Oct. 2015)

US$ 274 billion (1.53%) (2014)

18th largest in the world 4

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Participating in

multilateral trade

talk

Realizing trade

liberalization and

facilitation

Engaging in

regional

economic

integration

Strengthening

trade promotion

Top player in the world’s ICT industry as well as a

major supplier of goods across the industrial spectrum.

Excels in the fields of semiconductors, optoelectronics,

information technology, communications, and electro-

nics.

At present, the economy is shifting toward nanotech-

nology, biotechnology, optoelectronics, green energy,

space science and the tourism service industry.

The service sector as a whole accounts for more than

64% of Taiwan’s GDP.

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Taiwan’s Unique

Advantages in

Global Markets

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I. International Competitiveness

1. Ranked #11 globally, #3 in AsiaRanked #3 globally in “percentage of high-tech goods in manufactured exports”

IMD’s World Competitiveness Yearbook 2015

2. Ranked #14 globally, #4 in AsiaRanked #2 globally in “State of cluster development”

WEF’s The Global Competitiveness Report 2014-2015

1. Ranked #19 globally, #5 in AsiaRanked #2 globally in “Getting electricity”

World Bank’s Doing Business 2015

2. Ranked #5 globally, #2 in AsiaBusiness Environment Risk Intelligence’s Business Risk Reports 2015

II. Ease of Doing Business

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Ranked #1 in AsiaDouble the average score in Asia and the Pacific, higher than the OECD average

Asian Development Bank’s Knowledge Economy Index 2014

Ranked #14 globally, highest ranking in historyThe Heritage Foundation and The Wall Street Journal’s 2015 Index of Economic Freedom

Ranked #8 globally, #1 in AsiaThe Global Entrepreneurship and Development Institute’s

2015 Global Entrepreneurship Index

III. Knowledge-Based Economic Performance Higher than OECD Countries

IV. Economic Freedom Improved for 6 Consecutive Years

V. Top Entrepreneurship in Asia

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Taiwan ranked

#4 in Asia in

the

Logistics

Performance

Index

Competitiveness of Trade Logistics

International ShipmentOverall Timeliness

Logistic Competence Infrastructure Tracking & Tracing

Customs

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4.0

4.1

4.2

2007 2010 2012 2014

Source: Connecting to Compete 2014, Trade Logistics in the global Economy, The Logistics Performance Index and Its Indicators, World Bank11

■Hsinchu IC manufacturing

Optical

Bio technology

■ Taichung Semiconductor and

Optical

Bio technology

Automation

■ Changhua Green energy

Surface treatments

■ Tainan Optical

Automobile parts

Mechanical automations

■ Nangang IC design

Digital content

Bio technology

■ Kaohsiung Petrochemical

Boat components and assemble

Metal enhancement

IC, Optical, Communication and Green energy

Ranked #1 and #2 in “State of cluster development” in 2013 and 2014 (WEF’s Global Competitiveness Report)

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USPTO Patent granted to Taiwan

in 2014

Patent per million population

Patent Type:

All

Patent Type:Utility

Patent Type:

All

Patent Type:Utility

12,254 11,332 532 492

Ranked #5(following US, Japan,

Korea, Germany)

Ranked #1

Source: The Global Competitiveness Report 2014-2015 by WEFSource: US Patent and Trademark Office

Innovation Scale Global Rank

Finland 1

Switzerland 2

Israel 3

Japan 4

United States 5

Germany 6

Sweden 7

Netherlands 8

Singapore 9

Taiwan 10

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Trade and Economic

Relationships between

Belgium and Taiwan

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According to the Customs’ statistics of Taiwan,

Belgium was the 7th largest trade partner of Taiwan in

the EU in 2014. Taiwan was the 8th largest trade partner

of Belgium in Asia in 2014, with trade between the two

countries totaling US$ 1.9 billion.

0

500

1,000

1,500

2,000

2,500

2006 2007 2008 2009 2010 2011 2012 2013 2014

million USD

Total Trade

Export to Belgium

Import from Belgium

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Import

◦ Jan.-Oct. 2015: US$ 0.59 billion (-7.73%)

◦ 2014: US$ 0.65 billion (-13.33%)

◦ Main items: chemicals, cars and medications

Export

◦ Jan.-Oct. 2015: US$ 0.9 billion (-15%)

◦ 2014: US$ 1.2 billion (10.34%)

◦ Main items: stainless steel, bikes and screws

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From 1952 till Sep. 2015, the accumulated investments of Belgiuminto Taiwan were US$ 102 million.◦ Main industry: chemical, car parts, power equipment, retail, finance and

insurance

Taiwan into Belgium were US$ 8.6 million.◦ Main industry: retail, chemical material manufacturing, transportation and

warehousing, other manufacturing

In 2014, Taiwan invested a total of US$ 2.75 million in Belgium,increasing more than five times the sum of previous two years.

Belgium to Taiwan Taiwan to Belgium

cases 1,000 US$ cases 1,000 US$2008 4 2,219 0 0

2009 2 199 0 0

2010 3 4,374 0 0

2011 3 11,055 0 0

2012 3 343 1 420

2013 5 609 1 1

2014 12 1,953 1 2,747

2015 1-9 4 6,015 0 0

1952-2015 82 102,422 11 8,581

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Belgian companies with subsidiaries or branch offices

in Taiwan

◦ Barco, Dredging International, Heraeus Electro-nite, IMEC,

Option, Solvay, UCB, Umicore, Velleman Components and

Verhaert

Taiwanese companies with operating centres or sub-

sidiaries in Belgium

◦ Evergreen (maritime transport), Yang-Ming (maritime trans-

port), Macronix (memory semiconductor solutions), United

Taiwan Bank , ASE (advanced semiconductor engineering),

ATEN (KVM switches) and R&G equipment (horse equipment)

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Investment relations between Taiwan and Belgium

received a boost after the bilateral "Agreement for the

Avoidance of Double Taxation and the Prevention of

Fiscal Evasion with Respect to Taxes on Income" entered

into force on 1st January 2006.

Under the agreement individuals, companies or other

bodies of persons residing in Taiwan and/or Belgium will

be able to avoid heavy tax burdens on business profits,

profits from shipping and air transport, dividends,

interests, royalties, income derived from dependent

personal services etc.

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Belgian or Taiwanese companies to which dividends,

interest and royalties are paid in the other country, will

only be taxed at a maximum rate of 10% in that other

country under the agreement. The normal tax rate under

Taiwanese law for dividends, interest and royalties for

companies is respectively 25% , 20% and 20%.

The double taxation agreement will bring about a

considerable tax reduction for Belgian and Taiwanese

companies and will be conducive to the development of

bilateral investment.

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Operating in an increasingly

integrated regional supply chain,

EU investors in east Asia would

benefit from a broader network

of investment agreements in the

region.

Building on the investment pro-

visions under negotiation with

China, the EU will explore

launching negotiations on

investment with Hong Kong and

Taiwan.

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Potential Business

Opportunities for

Belgium and Taiwan

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Business Cooperation

Technology Transfer

R&D and Innovation

Co-Partner

Local-Partner

Co-Partner

Local-Partner

EEN Taiwan Coordinator

Taiwan joined EEN in May 2015, enabling closer EU-Taiwan SME cooperation

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Taiwan is projected to have the highest capital expen-

diture for semiconductor manufacturing worldwide in

2015, reaching US$10.5 billion.

Silicon Europe, an alliance consisting of micro and

nano-electronics clusters from Belgium (DSP Valley)

and other European countries, identified Taiwan as the

top choice for international cooperation.

We welcome European semiconductor equipment

suppliers to collaborate with Taiwanese companies.

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Taiwan is pushing for productivity 4.0, leveraging IOT

to digitize production information and utilizing System

Management, Big Data and Lean Management.

◦ The goal is to achieve a novel business model of Internet-based

Service-Manufacturing.

Technological capability enhancement to boost

productivity of SMEs

◦ Introducing Industry 4.0 and experienced experts to help

Taiwan's SMEs adopt Productivity

Partnership for global market expansion

◦ Taiwanese companies are ready to serve as partners of global

enterprises in the implementation of Industry 4.0.

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