Asia Pacific Watch

September 10, 2005
Taiwan’s industrial excellence showed in string of exhibitions

TAIWAN -- For a small island county with a population of only 22 million, Taiwan has registered phenomenal economic development. The per capita income is a remarkable US$ 13,530 and cities like Taipei, the capital, and Kuoshing, the industrial hub, provide the perfect picture of an orderly and well-maintained urban landscape. While there are a range of industries like textiles, industrial machinery, chemicals, etc. in which the country excels, it is electronics and IT products that are the crown jewels in its line of achievements.

The ICT industry had an output of US$ 78 billion in 2001. It rose to US$ 125 billion by 2003. Taiwan is number one globally in at least 14 ICT products lines such as integrated circuits, where it has 91 per cent of the global market share, notebook PCs in which it’s share is 66.7 per cent, LAN switches with 43 per cent of the global market, LAN products with 65 per cent share of the global market, CD/DVD/RW with 41 percent, etc. It has 65 per cent of the global market in ADSL, 91 per cent of wireless LAN and 42 per cent of PDAs. The result, Taiwan is a very attractive market for many global businesses.

The hosting of trade events on a variety of sectors is a big industry in the country. During a recent visit to Taiwan, Convergence Plus bureau chief Rajendra Prabhu asked Tiger Lin, Chairman of Taipei Exhibition and Convention Association, about the scale and range of events being held in his country.

Mr. Lin is also vice-president of the Asian federation of Exhibition and Convention Association, and vice-chairman of the Taipei Neihu Technology Park Development Association. He is General Manager of one of the leading international exhibition management companies of Taiwan, the Chan Chao International Co., Ltd. Most events are held in the huge Taiwan World Trade Centre complex in Taipei with its recently built 101 storey global landmark. You can go up to 89th floor in exactly 39 seconds – a tribute to the technological excellence of the country.

Convergence Plus: It seems there are exhibitions on in Taipei almost everyday. What is the business impact of these exhibitions?

Tiger Lin: Exhibitions are the windows of an industry's R&D, producing and marketing activities. During exhibitions, exhibitors can make business, do marketing, communicate and exchange information simultaneously under one roof. It is very helpful for Taiwanese companies to find markets and buyers at exposition sites, whether it is in Taiwan or foreign countries.

By the way, the exhibition industry is also a precise index of the growing and declining of other industries.

CP: What are the major export items from your country to the global market?

TL: The major export items of Taiwan are industrial products, such as electronics, industrial machinery & equipments, metalwork, textiles, chemicals and plastic products. Most of them are exported to China (38%), United States (16%), and Europe (11%).

CP: Is the Taipei Convention Centre comparable to those in Hong Kong and Singapore?

TL: Regarding the exhibition hall & exhibition industry, the facilities of Taipei World Trade Center are comparable to Hong Kong and Singapore. But the competitive advantage of the Taiwan exhibition industry is better than Singapore and Hong Kong because the R&D capability and the market potential of some important industries, such as 3C electronics, are important factors that attract foreign companies to participate in or visit an exhibition.

Although the geographical location of Taiwan is not as good as Hong Kong and Singapore, it is still a better place to hold an international exhibition, especially high technology industries.

But when it refers to convention environment, Taiwan is not as competitive as Hong Kong and Singapore. Because they are cities of trade and business, having better geographical locations and tourist attraction. Taiwan’s convention activities are also occasionally obstructed by some political problems.

CP: What would you suggest are the main areas of interest that Taiwan has in the Indian economy?

TL: Taiwanese investors would like to comprehend the potential of the Indian market first, and then enter and invest with the most advantageous products. In the meantime, the main items that Taiwan takes the most interests to import to India are 3C electronics hardware, automobile parts, manufacturing machinery and equipments. They can facilitate not only the economic activities of both countries but also the upgrading and the information exchange of new technology.

CP: What is the contribution of the various associations with which you are associated at the highest level as chairman, etc., to the growth of Taiwanese economy?

TL: A good association can help members to make profits and partners. Most of the associations in Taiwan are strongly integrated by industrial members. The government also gives many supports and benefits for them to join international activities. Thus, many firms are willing to participate. The associations, in order to find partners, get more market information and business opportunities.

CP: What is the Foreign Direct Investment that Taiwan makes abroad?

TL: Most enterprises in Taiwan are small and medium size; about 80% of the total domestic employees are working in these companies. Small and medium size enterprises are elastic and active; often eying markets in developing countries that have great potential. Niche markets like China and Vietnam, have already attracted most investment from Taiwan. According to the statement of the economy ministry, India and Russia will be the next targets of Taiwanese investment.

CP: In view of Taiwan entrepreneurs, what is lacking in India that prevents them from investing in our country?

TL: We lack useful market information such as industrial environment, government policies and economic development of India. Taiwanese investors are not so familiar with Indian markets. It will be very helpful if related Indian government departments and organizations conduct more promotions in Taiwan, make Taiwanese people aware about India – then they won't be afraid to invest in such a high potential and growing country.

CP: As you are also Vice President of the Asian Federation of Exhibition and Convention Associations (AFECA), please tell us about what this federation is doing to promote exhibitions across India?

TL: The headquarters of AFECA is in Singapore, and the chairperson is zealous to invite related Indian companies and associations to join AFECA. We are confident that we will help Indian exhibition and convention industries step into globalization.

For more information about AFECA,
please visit http://www.afeca.org