ECONOMIC PROWESS

Taiwan’s economic prowess is the envy of the world.  The island has rapidly climbed the economic ladder from

agriculture through export-oriented manufacturing and finally reached the service-based economic plateau. 

Today, Taiwan is recognized as the world’s high technology supplier.  A strong work ethic, a highly educated

workforce, and adventurous entrepreneurs have all contributed to Taiwan’s rapid economic rise.

Strategic Location

Taiwan is strategically located in the heart of East Asia. To the west is the giant China, to the north is highly developed

Japan and rapidly rising Korea, to the south is neighbor Philippines. Its unique geographic location that makes

Taiwan became one of the world’s trading powers. The Swiss-based World Economic Forum (WEF) recently

released its "Global Competitiveness Report 2003-2004," which assesses the economic growth prospects and

comparative business-environment strengths and weaknesses of the world's major economies.

Economicly Competitive

As indicated by this Oct. 30 report, Taiwan continues to offer a superior business environment. Most noteworthy,

it places fifth overall in the report's Growth Competitive Index (GCI) rankings, leading all other Asian nations.

In the GCI technology index, Taiwan has moved up a notch over last year to place third, behind Finland and the

United States, while in the macroeconomic-environment and public-institutions indices it rank 18th and 21st.

Vital Role of Industrial Parks

Taiwan's industrial parks have been set up to provide a supportive environment for the manufacturing industry, catering

particularly to export-based companies. These districts, some commissioned by the central government, others by

local city and county councils, some even by large private industrial conglomerates, are situated away from existing residential

areas but close enough to supply needed labor and associated infrastructure. Some of the more out-of-the-way parks have

even developed their own full set of supportive industries, utilities, schools, etc.

            Some parks were planned as (or have developed into) special purpose areas, such as Hsinchu Science Park, while others are

            general purpose industrial zones. Incentives are usually available for potential tenants; favorable loan conditions, tax breaks, reduced

            charges on utilities, favorable rentals, pre-existing factory and waste management facilities.

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