CEPD approves herbal medicine park in Chiayi

December 27, 2004

The Council for Economic Planning and Development in mid-December granted approval to Chiayi County Government for the establishment of the Chiayi Spice and Herb Biological Technology Park. The park, one of four major agricultural technology parks being promoted by local governments in Taiwan, will provide 86 hectares for enterprises involved in processing, sales and marketing, and research and development operations related to herbal agriculture.

The Central Government has decided to initially provide up to NTD 1.5 billion in subsidies under a development plan that will utilize the popular BOT (build-operate-transfer) investment method. The establishment of the park will require a total budget of NTD 3.486 billion. Investors will be granted preferential tax benefits, including five-year business income tax exemptions. Construction is scheduled commence in 2005 and wind up in 2007.

Interestingly, Formosa Plastics Group, known primarily for its massive petrochemical operations, was one of the first enterprises to express an interest in setting up operations in the park.

Chiayi County, considered Taiwan's agricultural county, is the ideal location for such a park in Taiwan. While situated on the Tropic of Cancer, the county still enjoys a mild climate. It also possesses abundant land resources with a varied topography. What's more, the county already grows at least 70% of Taiwan's spices, herbal medicine, essential oils, and mushrooms and funguses.

The CEPD, highlighting the worldwide economic potential of herbal medicine, cites international statistics indicating that the global herbal medicine market will surpass USD 35 billion in 2006. The use of natural and alternative medicines in the United States and Europe also continues to expand. World Health Organization figures show that four billion people, nearly three-fourths of global population, have tried or currently use Chinese herbal medicine. Analysts see room for rapid growth in this market.

The expansion of the global market as well as Taiwan's long history of the popular use of traditional Chinese medicine mean Taiwan is in an ideal situation to expand globally in the herbal medicine market.

(Central News Agency, China Post)

E-mail this page.