An increasing number of Taiwan exporters are mulling home-bound investment opportunities as part of a trend toward capitalizing on the country’s improving business environment, according to the ROC Ministry of Economic Affairs June 4.
The latest survey of local exporters released last month by the MOEA revealed that nearly 10 percent of 2,730 respondents plan to expand production this year, with 58.21 percent opting to do so in Taiwan.
Mainland China, including Hong Kong, and Taiwan’s six major trading partners from the Association of Southeast Asian Nations were No. 2 and No. 3 at 38.81 percent and 18.66 percent, respectively.
“Since we first conducted the survey in 2011, the percentage of firms mulling business expansion at home has steadily risen,” an MOEA official said. “This began at 48.61 percent and hit 56.52 percent last year.
“No effort is being spared in sustaining this positive trend and rolling out measures for attracting new capital while developing Taiwan talent and the technological nous of homegrown firms.”
The survey also showed that nearly 51 percent of Taiwan’s export orders were filled by local firms’ manufacturing facilities outside the country, up 0.4 of a percentage point from last year.
Mainland China continues to be the leading site of such offshore production, accounting for the lion’s share at 93 percent. Taiwan’s major ASEAN partners comprised 2.6 percent.
Nearly 85 percent of Taiwan’s information and communications technology exports were produced at overseas locations, so were 68 percent of electrical products, 57 percent of precision machinery and 52 percent of electronics.
In contrast, over 80 percent of Taiwan’s traditional exports, such as chemicals, machinery, metal products and plastics, were still manufactured locally.
Lower production costs were cited by 60.15 percent of the firms as the major reason for offshore production, followed by customer requests, easier access to raw materials, market expansion and global strategies. (JSM)
Write to Meg Chang at sfchang@mofa.gov.tw