Taiwan suffered from a widening trade deficit in the first seven months of this year, the Directorate General of Budget, Accounting and Statistics reported.
The deficit for the period reached US$421.6 million in two-way trade of US$22,449.2 million. The deficit for July alone stood at US$201.5 million with trade volume of US$3,497.3 million. Exports were valued at US$1,637.9 million and imports at US$1,859.4 million.
For the seven-month span, Taiwan exports totaled US$11,013.8 million for a gain of US$2,258.1 million or 25.8 per cent over the corresponding period of last year. Imports of US$11,435.4 million were marked by an in crease of US$3,441.2 million or 43 per cent. Two-way trade volume for the period rose US$5,699.3 million, 34 per cent ahead of last year.
President Chiang Ching-kuo instructed government organizations concerned to continue efforts to reduce the trade deficit and promote economic growth with stability.
Presiding over an economic and financial meeting, President Chiang stressed quality products and increased output to strengthen the competitiveness of exports in international markets.
President Chiang noted that:
- July's increased trade deficit was caused by the decrease in exports, the increased price for imported oil and large imports of machinery parts and raw materials. He said manufacturers should attach more importance to quality and production volume.
- The Hsinchu Science Park is under construction. Technology-intensive factories established there by foreign investors mark a new stage in industrial development. Government should offer the assistance to make the project a great success.
- Expansion of the Industrial Technology Research Institute and improvement in, its functioning are moving ahead. Resulting parts have supplied an important source for the domestic electronics industry.
The institute should step up cooperation with National Tsinghua University, National Chiao Tung University and the Hsinchu Science Park to enlarge technology research and development.
- Construction of the World Trade Center in Taipei should be spurred by the government.
Economic growth trails estimate
Economic growth in the first six months of 1980 was 7.2 per cent compared to the 1.9 per cent of South Korea, the Council for Economic Planning and Development reported.
Wholesale prices rose by 22.9 per cent, much lower than the 40.2 per cent in Korea. The in crease of 17.3 per cent in retail prices compared with 26.1 per cent in Korea.
The council said that except for Indonesia and Malaysia, all countries of the region had trade deficits during the six months despite economic growth.
Taiwan's real economic growth may reach 6.6 per cent this year, lower than the target of 8 per cent, according to a report prepared by the council.
The gross national product for the first six months of this year was estimated at NT$676,900 million (US$18,802 million).
Factory count shows decline
The Ministry of Economic Affairs reported 40,102 registered and active factories in Taiwan.
According to C.C. Peng, director of the Department of Statistics, the figure is down from the 55,000 of December, 1979.
Peng, who heads a fact-finding committee to survey industrial plants, attributed the decline to urban development plans requiring factories to relocate or shut down.
Among other statistics compiled by Peng's committee:
- 159 industrial plants employ 1,000 or more and 3,071 employ 100 or more.
- 2,271 plants reported annual revenue exceeding NT$100 million (about US$2.8 million) and 11.518 revenue exceeding NT$10 million (about US$0.28 million).
- Area of 40,102 plants is 20,753 hectares with textile plants taking up 4,354 hectares.
- Fixed assets total NT$762.9 billion (about US$21.2 billion).
- Inventory was figured at NT$303.4 billion (about US$8.4 billion).
Energy saving program fruitful
Economic Minister Chang Kwang-shih called on the nation to step up energy conservation.
"One liter of oil saved is one more liter of oil produced. One KWH of electricity conserved is one more KWH of electricity generated," said Chang.
He reported conservation measures have begun to show results. This is shown in the steady decline of the consumption growth rate for oil and electric power.
Sales of oil products grew by 18.4 per cent in 1978 and 11.8 per cent in 1979. For the first half of this year, the increase was 4.8 per cent.
Oil consumed for power generation rose by 4.6 per cent in 1978, but decreased by 11.8 per cent in 1979. For the first six months of 1980, the decline was 2.2 per cent.
Chang gave the following account of the electricity picture:
Household consumption rose by 14.4 per cent annually between 1970 and 1979. For the first half of this year, the growth rate was 3.8 per cent.
Consumption by commercial establishments increased at an annual average of 17.6 per cent in the past 10 years but the growth rate was reduced to 4.6 per cent for the January-June period of this year.
Industrial power consumption during the 1970s increased at an annual pace of 11.3 per cent. In the first six months of this year, it rose by 7.6 per cent.
4th nuclear plant approval expected
The government is expected to approve the proposal of the Taiwan Power Company to construct its fourth nuclear power plant.
Officials of the Council for Economic Planning and Development decided the plant is necessary and in line with the government policy to find cheaper energy sources and diversify long-range power development.
The fourth plant calls for out lay of more than NT$50 billion (about US$1,389 million) for construction and purchase of facilities.
Each of the generators will have installed capacity of 900,000 kilowatts. Construction work is scheduled to start in fiscal 1981.
Completion of the first generator is expected in 1988 and the second a year later.
20,000 electric cars planned annually
An electric car plant is under construction at Hsinchu in northern Taiwan to produce 20,000 electric vans and buses a year.
The project has received Executive Yuan approval and is scheduled for completion in mid-1983. Investment will come from the Ministry of Economic Affairs, National Science Council and government-owned Tang Eng Iron Works. Technological assistance is being provided by National Tsing Hua University.
During the first stage of the project, which began in April this year and will end in June, 1981, Tang Eng, MOEA and NSC will each spend NT$20 million (about US$0.56 million) for the modification of existing models and construction of a machinery manufacturing plant and testing facilities. A production target of 120 vehicles has been set for this stage.
During the second stage be ginning in July, 1981, and extending through June, 1983, MOEA will invest an additional NT$169 million (about US$4.7 million) and Tang Eng NT$67.4 million (about US$1.6 million) for construction of molding, pressing, welding and painting facilities and the manufacture of bodies. Production capacity has been targeted at 5,000 cars, utility vehicles and delivery vans.
In the third stage beginning in mid-1983 testing facilities will be completed and the plant will be able to design its own models.
Investments head for US$300 m. mark
Foreign and overseas Chinese investments in the Republic of China in 1980 are expected to hit US$300 million, an official of the Investment Commission of the Ministry of Economic Affairs said.
In the first seven months of this year foreign and overseas Chinese investments amounted to US$247,658,000, up 20.8 per cent over the same period last year.
Overseas Chinese investments amounted to US$99,481,000, up 10.81 per cent.
Foreign investments totaled US$148,177,000, up 27.22 per cent.
Cargoes will top 100 million tons
Cargo volume to be handled at the five international seaports in Taiwan will surpass 100 million metric tons this year.
The Ministry of Communications based its prediction on the rapid increase of cargo handling at Kaohsiung, Keelung, Hualien, Taichung, and Suao in the first seven months of this year.
Volume for the January-July period was 67.86 million tons, an increase of 19.59 per cent over the same period last year.
Cargo handled at the five ports totaled 99.32 million tons last year.
Following is the growth of cargo handling at each port for the seven months:
- Kaohsiung: 42.57 million tons, up 15.68 per cent.
- Keelung: 20.24 million tons, up 29.48 per cent.
- Taichung: 2.63 million tons, up 8.6 per cent.
- Hualien: 1.76 million tons, up 18.53 per cent.
- Suao: 642,400 tons, up 64.93 per cent.
Trade coordination group set up
An overseas trade coordination group was set up to strengthen communications between commercial representatives abroad and bring together promotional activities.
The group is jointly headed by Vice Foreign Minister Fredrick F. Chien and Vice Economic Minister Y.T. Wong and includes officials from the Ministries of Foreign Affairs and Economic Affairs, the China External Trade Development Council, Far East Trade Service Incorporated and the Central Trust of China.
H.K. Shao, director general of the Board of Foreign Trade, is executive secretary.
There are 172 public and private overseas commercial offices and agencies.
Sweaters to earn US$450 million
Exports of sweaters, including cardigans and pullovers, will exceed 10 million dozen worth some US$450 million this year, the Taiwan Sweater Industry Association predicted.
Sales showed a strong surge in July, climbing to 22 per cent to 1.1 million dozen in quantity and 41 per cent in value to US$57 million.
The July export increase pushed sweater sales abroad to 5.4 million dozen and US$258 million for the first seven months of the year, up 7 per cent in volume and 17 per cent in value over the corresponding month last year.
Manufacturers expect brisk sales to continue through the remaining months of this year because foreign buyers delayed placing orders. Some manufacturers say they may not be able to deliver all orders before Christmas.
10-year plan to help aged and workers
Plans have been announced to improve welfare programs for the aged, train more technical personnel and help people find employment under the 10-year economic plan.
The manpower planning department of the Council for Economic Planning and Development listed major tasks in manpower development as follows:
- Solve the population problem by correcting the traditional concept that it is necessary to have more children to be assured of care in old age.
- Adopt educational policy in line with the requirements of society. More technical personnel will be trained for industry.
- Encourage private enterprise to sponsor vocational training.
- Provide better employment services.
- Improve working conditions and welfare programs for laborers.
Marketing law to serve farmers
The Cabinet passed the draft of an agricultural marketing law.
Intended to eliminate exploitation of farmers by middle men, the draft is being submitted to the Legislative Yuan for ratification.
These are main points:
- Activities of middle men will be controlled.
- Farmers will be helped to set up organizations to move their products to market.
- Packaging assistance will be extended.
- Corporate status will be extended to wholesale markets to increase efficiency.
- Retail trade will be modernized and hygienic standards raised.
- Wholesale markets are to be free of housing, land, and farm taxes.
Offshore search for oil continues
The Chinese Petroleum Corporation is prospecting for off shore oil between Tainan and Makung in Penghu.
CDW No. 2 is being drilled off Tainan in the hope of discovering oil.
The company drilled CDW No. 1 in the same area with as yet inconclusive results. CDW No. 2 will help ascertain the prospects of the area.
Offshore prospecting between Hsinchu and Taoyuan has been suspended. Several wells were drilled without finds of sufficient commercial value.
China Steel sets goal of 4 m. tons
China Steel Corporation's output for fiscal 1981 is set at 4 million tons, an increase of 400,000 tons over the fiscal 1980.
Y.T. Chao, president of the state-owned company, said CSC produced 3.6 million tons of steel products in fiscal 1980 to set a record of 115 per cent for capacity utilization. The company will set another production record in the 1981 fiscal year.
CSC's US$1.41 billion expansion project scheduled for completion in June of 1982 will increase annual capacity of crude steel to 3.2 million tons.
The company also expects to manufacture 1.4 million tons of hot and cold rolled steel products annually.
Loans from abroad reach US$4.8 b.
Government enterprises borrowed some US$1.7 billion from foreign banks in fiscal 1980, a high since 1967.
C.H. Tu, vice minister of finance, said the China Steel Corporation led the list with borrowing for second-stage expansion. Then came the Taiwan Power Company, China Airlines and the Chinese Petroleum Corporation. The loans came from United States, France, Britain, the Netherlands and Japan.
As of the end of June, 1980, foreign loans of the government and state-owned enterprises amounted to US$4.8 billion. The government's ceiling is US$6.5 billion.
Grindlays Bank opens Taipei branch
The Taipei branch of the Grindlays Bank Ltd. of Britain received deposits of over NT$140 million (about US$4 million) from three corporations on the day of its opening.
Roy E. Mankelow, general manager, reported the deposits were made by Tatung Company, Asia Trust Corporation and Wei Chuan Foods Corporation.
Mankelow introduced the banking operations of Grindlays in Taipei to more than 200 Chinese and foreign guests, including I.S. Sun, chairman of the Bankers Association of Taipei; Ronald H.C. Ho, president of the International Commercial Bank of China; C.C. Chao, president of the Bank of Communications; Wilson C.P. Yen, president of the Bank of Taiwan; and Y. L. Lin, president of the Chang Hwa Commercial Bank.
Sun urged local bankers to upgrade their services. Ho gave an analysis of the British banking system.
Coal handling facilities planned
The government has decided to invest NT$4 billion (about US$111 million) in the next 10 years to build wharves for coal so as to boost unloading capacity to 8.42 million metric tons annually.
The Taiwan Power Company plans construction of five wharves exclusively for coal unloading. It is expected that by 1989, capacity of all ports will reach 67.42 million metric tons.
The Taiwan Provincial Bureau of Mines will join with mining corporations in investing NT$5 billion (about US$139 million) for construction of coal storage yards with capacity of 1.2 million metric tons.
Transportation facilities will invest NT$2.4 billion (about US$67 million) for construction of railway and highway facilities for moving coal.
Overseas mining exploration slated
Establishment of an overseas mining investment corporation to explore foreign resources to supply domestic needs will be backed by the government.
Investment would come from public and private enterprises.
There is interest in exploring coal, uranium copper, aluminum and iron resources.
The Chinese Petroleum Corporation is cooperating with foreign companies in oil exploration projects and the Taiwan Power Company is involved in coal exploration in Canada and uranium exploration in South America.
The Taiwan Metal Mining Corporation wants partners to seek copper in Indonesia and other areas, The China Steel Corporation wants to explore for iron deposits.
The investment corporation will plan exploration projects and help provide transportation and cargo handling facilities.