Taiwan At a Glance
The island market of Taiwan, which purchased $21.2 billion worth of U.S. goods and services in 2005, is a U.S. product-buying powerhouse. Taiwan possesses a robust market economy, which belies its relatively small population and scant natural resources. The world’s 19th largest economy is the U.S.’ eighth largest trading partner and is home to a world-renowned high-tech sector. Furthermore, with one of the highest per capita GDP and household disposable income rates in Asia, Taiwan has become a very attractive consumer market for U.S. exporters.
Taiwan is a modern and industrialized megalopolis full of potential. The island nation already possesses a flourishing world class IT industry. In addition it also boasts of an extensive network of high-technology industry sectors, which are supported by high-quality human resources and fully integrated supply-chain networks. Having recently won the 2006 Intelligent Community Award, Taiwan is internationally recognized as one of the most competitive economics and information rich countries to live in. The Taiwanese have modern health care, media, and banking systems that sustain an increasingly prosperous community.
U.S. exporters may wish to know that the U.S. is currently Taiwan's 3rd largest trading partner with $50 billion dollars in two-way trade in 2005. U.S. exporters will find Taiwan executives to be vastly knowledgeable in working with international companies due to decades of experience in trading. Moreover, Taiwan has a well-developed harbor infrastructure that is capable of accommodating a wide range of shipping and transport needs.
Commercial ties with Taiwan remain strong. Consumers in this vibrant democratic market demand high quality products at a competitive price. Competition is fierce and American firms will likely find competitors from around the globe.
Economic Snapshot
- GNP (2005): US$355.4 billion
- Per Capita GDP (2005): US$15,291
- Real GDP Growth (2005): 4.03%
- Unemployment (2005): 4.13%
- Inflation (2005): 2.5%
- Foreign Exchange Reserves (2005):US$253.3 billion
- Breakdown by Economic Activity (% of GDP):
- Agriculture- 1.8%
- Services- 73.6%
- Industry- 24.6% Major products - Electronics, electrical machinery, chemicals, petrochemicals
- US - Taiwan Trade:
- The U.S. is Taiwan’s 3rd largest trading partner; while Taiwan is the U.S.’ 8th largest trading partner
- The U.S. is one of the key suppliers of electrical machinery, transport equipment, scientific instruments, and chemical products to Taiwan.
- Some Advantages:
- Two of Taiwan’s major harbors, Kaohsiung and Keelung are in the process of becoming free trade zones, which would enable a faster flow of good and therefore decrease business operating costs.
- The island’s central location offers the shortest shipping times to the major ports of the Asia-Pacific region, averaging 3 hours by air, and 53 hours by sea from Kaohsiung Port.
- With close cultural and linguistic ties, Taiwan serves as an excellent and realistic test market for small and medium-sized companies whose aim is set on Mainland China.
Best Prospects in Taiwan
| Rank | Industry Sector | Estimated Imports from the U.S. in 2005 (U.S million) |
| 1 | Electronic industry prod/test equipment | $5,600 |
| 2 | Electronic components | $4,100 |
| 3 | Industrial chemicals | $2,259.4 |
| 4 | Computer services and software | $1596 |
| 5 | Laboratory scientific instruments | $785 |
| 6 | Plastic materials/Resins | $658.6 |
| 7 | Educational services | $609 |
| 8 | Electrical power equipment | $435.8 |
| 9 | Telecommunications equipment | $284 |
| 10 | Medical devices and supplies | $266.3 |
| 11 | Household consumer goods | $237.8 |
| 12 | Process controls- industry | $169 |
| 13 | Pollution control equipment | $68 |
| 14 | Security and safety equipment | $20.5 |
Market Entry Strategy
Traditionally, using highly qualified local agents has been the most effective market entry method. Trade terms vary widely, with the CIF (Cargo Insurance Freight), incoterm and letters of credit in common use. Now, the U.S. Commerical Service in Taiwan provides a number of services ranging from finding potential local partners to conducting customized market research. Pre-screened business appointments can be arranged through the Gold Key Matching Service. U.S. companies can also be promoted on the U.S. Commerical Service website, where product information is translated into Chinese and featured on the local version of its website, which targets Taiwanese importers and buyers. There are U.S. Commerical Service posts located in Taipei and Kaohsiung. For more information, please visit How We Help U.S Companies.
Taiwan Commercial Guide
Our best-known report is the 2006 Taiwan Commercial Guide for U.S. Exporters, an annually updated overview of the Taiwan economy. This 93-page report includes information about Taiwan's unique political framework, business tips, Leading Sectors for U.S. Export and Investment, economic statistics, and more, please visit 2006 Taiwan Commercial Guide.
Market Research Reports
Our local trade specialists stay on top of market trends and publish reports on a wide range of Taiwan commercial issues: broad industry overviews, new market opportunites, and important changes in regulation and more, please visit 2006 Market Research Reports.
Economic Outlook
Taiwan’s economic growth is projected to remain around four percent in 2006 and 2007. Export expansion, fueled by production facilities in China, will serve as a major diving force behind Taiwan’s economic growth in 2006 and 2007. Taiwan exports to China have grown faster than exports to other markets and have allowed Taiwan to achieve huge trade surpluses and foreign exchange reserves. Export expansion and development of the service sector will keep unemployment in 2006 and 2007 below four percent (except for a seasonal upward fluctuation in summer time). Private consumption and private investment, some 75% of GDP, will gradually recover from the adverse effects of credit/cash card debt and excess inventory problems.
Useful Websites
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Taiwan Telecom Services Overview