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Strategic service industries include information services, Chinese-language e-commerce, digital content, cloud computing, the MICE industry, internationalization of gourmet foods, international logistics, healthcare, design services, chain store franchising, tourism operations, energy technology services, and other approved service businesses.

Advantages

  • Taiwan is a 1.5-to 5- hour flight from major cities in Asia

  • High degree of acceptiveness of local consumers to innovation and international content makes Taiwan an ideal site for pilot projects

  • A complete upstream-to-downstrem industry chain and talent to develop the echnology services industry

  • Taiwan has ranked 15th in Ease of Doing Business in 2020 among the 190 economies covered

  • A strong manufacturing newtwork favors the development of peripheral service industries

 

  • Taiwan enjoys a healthy hardware and software infrastructure for the information and communications industry, providing international businesses with both a market and a test bed for the development of smart services for the digital economy.

  • By 2020 the digital economy will grow from 20.5% (at about US$110 billion) to 25.2% (about US$160 billion) of GDP.

  • The production value of the software sector will nearly double, from US$30 billion to US$56.7 billion.

  • The digital living penetration rate for the public is projected to reach 60% by 2020, which will rank Taiwan among the top 12 in the world. By 2020 broadband service will be upgraded to 1Gpbs, 10 times the current speed of 100Mbps, with service coverage at 90%. Disadvantaged families have a guaranteed bandwidth with a data transfer rate of 10Mbps. This will create a huge market for digital services.

 

  • The ceaseless advancement of technology blurs the boundary between the cyber world and the real world. There are more and more ways of shopping available to consumers, and the resulting business opportunities will drive the development of eCommerce at home and abroad, and will promote cross-border business cooperation.

 

  • The rise of online shopping has triggered a huge demand for logistic services. Foreign businesses can take advantage of Taiwan’s highly convenient and efficient logistics services, as well as its advantageous geographic location and industrial clusters, to strengthen their investment in logistics service networks throughout the Asia-Pacific region.

 

  • Taiwan wishes to develop the food and beverage industry through industry clustering to achieve better business opportunities and build up an international marketing base for the promotion of gourmet foods from Taiwan. The world’s major cities will be targeted for the promotion of cooperative investment with foreign companies.

 

  • Taiwan has a solid foundation in semiconductor manufacturing and information and communications technology, as well as high-quality medical service personnel and professionals. Foreign firms can make use of these factors to integrate crossindustry resources and take advantage of business opportunities in smart health care together with their Taiwanese partners.

 

  • LOHAS has emerged as a charming way of life for the public in Taiwan, and this has contributed to the mushrooming of facilities for shopping, pleasure, and food and beverage services. Foreign investors are welcome to invest or engage in joint ventures with Taiwanese enterprises to take advantage of business opportunities in the island’s new style of leisure living.

Policy Focus

  • For the implementation of the “Strengthen Investment in Strategic Services Promotion Plan,” the National Development Fund of the Executive Yuan has allocated NT$10,000 million to be invested jointly with funds from fund management companies to promote the development of strategic services. The project was kicked off in 2013 and is running for a period of 10 years. Government investment in any enterprise under this plan is limited to a maximum of NT$100 million and may not exceed 49% of the enterprise's capitalization. The purpose is to improve employment opportunities in the service sector, assist the service sector in internationalization and technological development, and increase export volume and production value.

  • The government launched the “Digital Nation - Economic Innovation Development Plan (20172025)” (known as DIGI+) to cultivate a good economic environment for digital innovation nation-wide and to pave the way for innovative development of the services industry.

  • Among the themes of the DIGI+ Plan is encouragement of the private sector to develop services for smart living, and to offer solutions and business models for a sharing economy.

Low-Interest Loans

  • Loans for Promoting Industrial Innovation or R&D: Applicable to all innovation and R&D projects relating to internet, manufacturing, technical services, distribution services, and cultural and creative industries. Loans can be up to 80% of total expenses of the approved plan up to a maximum amount of NT$65 million per loan. Government assistance must first be deducted.

Tax and Tariff Incentives

  • Business income tax rate in Taiwan is 20%
  • Up to 15% of R&D expenses may be credited against the profit-seeking enterprise income tax payable by the company in the current year

R&D Subsidies

成功案例

Success Stories

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan is the largest and most recognized real estate developer in Japan. The company has actively implemented a number of domestic and overseas development projects with the goal of improving society and the natural environment. Mitsui Fudosan’s business includes office buildings, retail properties, commercial facilities, housing for rent, hotels, resorts, logistics facilities, real estate circulation, and real estate solution services. Mitsui Fudosan has been a pioneer in Japan’s real estate history, including completion in 1968 of the Kasumigaseki Building, Japan’s first skyscraper, and the 2007 completion of Tokyo Midtown.

Investments in Taiwan

Mitsui Fudosan’s first development project in Taiwan was a retail outlet in Linkou, New Taipei City that opened in January 2016. It brought new energy to Taiwan’s retail market and gave consumers an experience such as they had never had before. In 2017, Mitsui Fudosan acquired its first hotel in Taiwan, the Zhongxiao Xinsheng, and also built its first shopping mall in Taiwan, the LaLaport Nangang. Mitsui Fudosan followed these projects in 2018 with two more hotels, the Zhongshan Zhongxiao and Dunhua N. Rd projects. The company’s second retail outlet opened within the Port of Taichung at the end of 2018. The innovative business models and practices brought by Mitsui Fudosan from Japan have not only upgraded Taiwan’s service industry, but also driven economic development and enhanced Taiwan’s international competitiveness. In the future, Mitsui Fudosan will introduce logistics facilities, resorts, and large development projects. It will continue to use the know-how accumulated from operations worldwide and will integrate resources to satisfy different demographics and generations of consumers in Taiwan, allowing them to experience an excellent environment, high quality products and friendly, thoughtful service.

Assistance provided by InvesTaiwan

InvesTaiwan provided broad-based information, legal advice and assistance with land acquisition based on Mitsui Fudosan’s requirements. InvesTaiwan also helped accelerate the administrative process and strengthened Mitsui Fudosan’s communications with local governments.

Source: InvesTaiwan

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Key Innovative Industries in Taiwan - Services (2.36MB)

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