Presentation - APEC SME Crisis Management Center

Report
APEC Symposium on Enhancing SME Capacity of
Managing the Risks Associated with Trade Liberalization
Cho, Shih Chao
Director General
Bureau of Foreign Trade, Ministry of Economic Affairs
Chinese Taipei
August 16, 2011
OVERVIEW
Chinese Taipei’s SMEs
All
Enterprises
SMEs
% of
SMEs
No. of enterprises
1,277,585
1,247,998
97.68
Total employment
(thousands of
persons)
10,493
8,191
78.06
Total Sales
(US$ million)
1,252,232
370,042
29.55
Domestic Sales
(US $ million)
905, 879
314,063
34.67
Direct Export Sales
(US $ million)
346,353
55,979
16.16
Source :White Paper on SME 2010
OVERVIEW
Strategies and Prospects
SMEs account for 97% of the total number of business enterprises
in Taiwan. Foreign trade has been the major engine for economic
growth in Taiwan over the past several decades.
Deploying Globally
Trade Development
Strengthening Bilateral
Relationships
Signing Free Trade Agreements
(FTAs)
Establishing a stable cross-strait
economic and trade
cooperation framework (ECFA)
New Chen Ho Plan (Global
Market Expansion Plan)
MVP Project (Project to
Promote Most-Valued
Products) in Emerging
Markets)
Green Trade Promotion
Branding Taiwan Plan
Deploying Globally Strengthening
Major Trading
Partners
Bilateral Relationships
Mainland China (including Hong Kong),
ASEAN, Japan, the US and the EU are
Chinese Taipei’s major trading partners.
 In 2010, Taiwan’s top trading partners, in order, were mainland China
(including Hong Kong), ASEAN, Japan, the US, and the EU. Together
these trading partners accounted for more than 85% of our exports
and over 65% of our imports.
 To strengthen bilateral economic and trade relations by developing
specific plans for different regions.
 To increase two-way trade by signing of agreements with trading
partners.
Deploying Globally
Participated in Regional
Economic Integration
 Signing the the Cross-Strait “Economic Cooperation
Framework Agreement” (ECFA)
 Promoting the signing of Taiwan-EU “Economic
Cooperation Agreement” (ECA)
 Negotiating the “Agreement between Singapore and the
Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu on Economic Partnership” (ASTEP)
 Joint Feasibility study on a Taiwan-India Economic
Cooperation Agreement (ECA)
Deploying Globally Global Economic Integration
The deadlock of WTO negotiations has accelerated the surge of regional economic integration
in recent years
US-Korea FTA
EU-Mexico
Free trade Area
ASEAN-Korea
ASEAN-China
Free Trae Area
Free Trade Area
NAFTA
EU
CAFTA-DR
EUASEAN
EU-S.Korea China-HK、Macao
(CEPA)
ASEAN
Free
Trade Area
MERCO
SUR
ASEAN-Japan
(AFTA)
Japan-Singapore
(EPA)
ASEAN-Australia-New
Zealand
Free Trade Area
Deploying Globally
ECFA
Mainland China (including Hong Kong) is Taiwan’s largest trade partner, export
market, source of trade surplus and second largest source of imports. Taiwan’s
two-way trade with mainland China has continuously increased.
Cross-strait trade relations
1600
US$ 100 m.
%
45
40
1400
35
1200
30
1000
25
800
20
600
15
400
10
200
5
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Trade Amount
394.6
533.7
666.9
883.5
998.9
1158.6
1302.9
1324.9
1093.3
1523
Export Amount
317.1
434.9
537.6
692.5
776.9
891.9
1004.4
953.8
837
1147
Import Amount
77.5
98.8
129.4
191
222
266.7
298.4
329.1
256.3
375
Ratio of Trade
17.1
21.5
23.9
25.2
26.2
27.1
28
26.7
28.8
29
Ratio of Export
25.8
32.1
35.7
38
39.1
39.8
40.7
39
41.1
41.8
Ratio of Import
7.2
8.7
10.1
11.3
12.2
13.2
13.6
13.7
14.7
14.9
Source: Ministry of Finance
0
Deploying Globally
Significance of ECFA
1. The main objective of ECFA is to maintain the competitiveness
of Taiwanese products in the mainland market.
2. The scope of the agreement includes reducing tariffs, eliminating
non-tariff trade barriers, promoting trade and investment
contacts, and boosting economic development and employment.
3.The early harvest list for Taiwan’s exports to the mainland
includes 539 products, eight service industries, and three
financial service sectors. The mainland’s list for exports to
Taiwan covers 267 products, eight service industries, and one
financial service sector.
Deploying Globally
Significance of ECFA
4. More open and systematic cross- strait economic relations
ECFA is only a framework agreement. Since ECFA came into
effect on September 12, 2010, the two sides conduct four
follow-up negotiations.
5. Based on ECFA, the two sides established a cross-strait
Economic Cooperation Committee
The purpose of this committee is to promote follow-up
negotiations.
6. Near 80%of the SMEs benefit from the early harvest
program.
Deploying Globally
ECFA Opportunities for SMEs
The Strategy of Using Taiwan as a Gateway to Enter the Mainland China Market
 Utilizing Taiwan as a base for exploring both mainland China and
other overseas markets.
 Investing in Taiwan by industries that benefit most from the opening
of the Chinese market with a focus on “early harvest” items.
 Investing in Taiwan’s next-wave “star industries” such as lithium
batteries, electric vehicles, cloud computing, e-books, tablet PCs, and
3D displays.
 Listing on the Taiwan stock market for issuance of Taiwan Depository
Receipts (TDRs) and boosting Taiwan’s development into an “Asian
NASDAQ.”
 Signing letters of intent (LOIs) to invest in Taiwan and cooperate in
the joint development of the Chinese and Asia-Pacific markets.
Trade Development
Trade Measures for SMEs
 In order to assist Taiwan’s SME’s in expanding
overseas markets, the BOFT has implemented
the following trade promotion plans :
─ The New Cheng Ho Plan
─ Most –Valued Products in Emerging Markets
─ Green Trade Promotion
─ The” Branding Taiwan” Plan
Trade Development New Chen Ho Plan(2008-2012)
(Global Market Expansion Plan)
Perfecting the trade
finance environment
Promote re-lending plans and
export insurance
Expanding into the
Assist companies in promoting
trade in mainland China
mainland China market and
and emerging markets
emerging markets
Chen Ho
Market Explorer
in the Ming Dynasty
(A.D.1368-1644)
Expanding marketing
strategies
Invite foreign buyers to
purchase in Chinese Taipei
Creating a new
procurement domain
Assist companies in pursuing
business opportunities among
WTO GPA contracting parties
Intensifying the
soft power of exports
Upgrade the competitiveness
of service industries
Trade Development
MVP Project
(Most-Valued Products) (2010-2012)
Targeting Emerging Markets
Targeting Criteria
Population=Market Size
China
GDP Growth Rate= Economic Potential
Average PPP= Purchasing Power
Taiwan
Vietnam
Adaptability of Taiwanese firms to
local environment
Indonesia
Key Economic Indicators in MVP Project Countries (2010)
Key Indicators
China
India
Indonesia
Vietnam
Population (million)
1,341
1,216
235
88
GDP Growth Rate (%)
10.04
8.77
6.00
6.04
Average PPP (US$)
7,239
3,176
4,380
3,104
97.3 billion
52.7 million*
14.0 billion
22.5 billion
Investments of
Taiwanese Firms (US$)
Source: IMF World Economic Outlook Database 2010
•According to the Economic Division, Taipei Economic and Cultural Center in New Delhi, investment of Taiwanese firms in India
is around US$1 billion.
India
Trade Development MVP Project
(Most-Valued Products)
Marketing and Promotion
 Overseas channels
development
 Marketing and promotion
toward emerging markets
 Brand image development
and promotion
 Buyers from emerging markets
come to Taiwan for
procurement
 Experiential marketing
 International online shopping
center
Promote the Concept
Concept Communication &
Consumer Research
Customer Acceptable
Trust in Function &
Quality
Brands
Elements of
Most-Valued
Products
Marketing Affordable
Channels
Prices
•Deliver the concept and
encourage manufacturers to
develop and market the mostvalued products in emerging
markets
•Plan and execute international
marketing activities to promote
products
•Explore consumer needs of
target markets through indepth surveys
R&D and Application Design
Market
Application
Integrate resources from all related subordinate units
of the MOEA and provide comprehensive support and
assistance to Taiwanese firms, including R&D,
production design and branding
Information
Feedback
14
Trade Development Green Trade Promotion(2011-2013)
 Definition: Trade of green products and services.
Consultation Platform
Consulting Services
•Provide Green Trade guidance
and assistance to industries &
SMEs
• Help SMEs in accessing
related government resources
Enhancement of
Competitiveness
Promotion & Marketing
Cross-Sector Collaboration
Talent Training
National Green Trade
Image Building
•Produce a Short film for green
•Hold summits and seminars; trade promotion
•Set up an award for the best
Provide training courses
of Chinese Taipei’s green
Green Trade Website
Carbon Footprint Disclosure
products & services
•MICE Industry
•Launch integrated marketing
•Freight Services
communication campaigns
APEC
Internationalization
•Invite international organizations, Chinese Taipei,
trading partners & global
corporations to share experiences Greening your Life
•Assist scholars & experts in
participate in green trade related
conferences & activities
Various Marketing Campaigns
•Publish green product catalogs
•Hold video conferences for
business match making
•Develop e-marketing plans
•Set up green product pavilions
in international trade shows
15
15
Trade Development
Branding Taiwan Plan
(2006-2012)
Main Purpose
-- foster an environment conducive to branding
-- raise the awareness of international branding among domestic enterprises
Main measures for SMEs
--Creating a favorable environment for brand development
--Establishing a branding consultation and information platform
--Expanding the branding talent pool
Taiwan Ecellence
--Raising the international image of Taiwan products and brands
• the Taiwan Excellence Awards is held every year
• winners of the Taiwan Excellence Awards are able to
represent the country’s innovative image in the
world markets.
Future Goals
-- Encourage Taiwan SMEs to move towards
branding
-- Bring more renowned brands into the world
markets, and become the pride of Taiwan
16
CONCLUSION
While foreign trade has been the driving force for Taiwan’s
economic development, SMEs serve as the engine of Taiwan’s
economy. Taiwan’s government will continue implementing a series
of trade measures to assist SMEs in enhancing their competitive
advantages and developing international markets .
The signing of the ECFA between Taiwan and mainland China not
only represents a milestone for our two economies, but also
provides significant trade opportunities for our trading partners to
explore the mainland China’s markets in the future. As a result,
Taiwan will continue making every effort to maintain stable and
close bilateral trade relationships with its key trading partners,
particularly of those in the Asia-Pacific region .
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Thank you for your Attention!
For Further Information
http://www.trade.gov.tw
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