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Operating Locations

Taiwan provides suitable operating environment. With respect to land cost, the commercial office rental in Taiwan is lower than in Hong Kong and in Singapore, which provides a lot of cost saving for enterprises in Taiwan. Take the top office building as an example, the rental in Hong Kong in 2013 is NT$23,200/ping (1 ping=3.3 square meters) while the rental in the Taipei 101 building is only NT$3,400 to NT$4,600/ping. In addition to the land cost per se, Taiwan government has continued to improve the administrative procedures for land acquisition, establishment of software companies, logistic and production facilities for both local and foreign companies. In this regard, the government has actively developed new science parks, ordinary industrial parks and free trade zones. Currently, there are 181 industrial parks, 10 export processing zones, three science parks, 7 free trade zones, agricultural biotechnology parks and environmental science and technology parks in Taiwan. Also, the government provides quality and low cost business environment.

Industrial development is the main force of Taiwan's economic development. Along with the rapid industrial development, factories of all kinds have been established throughout Taiwan. In early days, factories were located along the major highways or scattered all over the island. Therefore, the use of land and environment was not efficient. For this reason, the government designated the Industrial Development Bureau of the MOEA in 1970 to organize development teams for planning and developing the use of industrial parks/zones. Land is made available for factory establishment in the industrial parks. It has greatly influenced Taiwan's industrial development and the usage and planning of land. With the change of eras, the traditional industrial zones can not anymore fulfill the needs of the Taiwan industry. In response to the clamor of the industry, multi-purpose parks are planned to help form industrial clusters and accelerate integration of industries. The following types of industrial parks are available in Taiwan for different usages:

Types of Industrial Parks Descriptions
Industrial Parks Industrial Parks are the fundamental for Taiwan industrial development and the path to economic growth success, which provides manufacturers with sufficient lands, avoiding the disturbances from the surrounding environment, boosting local economic development with industrial clusters economic effect and creating high add value production environment.
Export Processing Zones Have centralized administration, simplified and efficient system; play an important role in national economic development; provide great contributions to the accumulation of Taiwan's foreign exchange reserves and introduction of technologies.
Science Parks Locations for development of high-tech industries; endeavor to create sound environment for quality R&D, production, work and leisure activities; promote Taiwan industry upgrade.
Agricultural Biotechnology Parks Intended for the development of agricultural technologies; introduction of talents of agricultural technologies; creation of industrial clusters of agricultural technologies; promotion of transformation of agricultural industry; advancement of product R&D, innovation, cultivation, production and marketing capabilities; assurance of sustainable operations of the agricultural industry.
Environmental Science and Technology Parks Intended for the prevention, improvement, or solutions for current environmental threats; provision of sufficient energy and resources to sustain living environment; creation of environment friendly society to assure the sustainability of energy and resources.
Free Trade Ports Intended for the development of global logistics and operations management; promotion of trade liberalization and internationalization; increase of national competitiveness and improvement of national economy.

With the rapid industrial development, the environmental issue has been of great importance. The Environmental Protection Administration of Taiwan has implemented the environmental assessment measure to prevent or reduce the negative impact on the environment caused by land development. To create clustering effects and improve regional development, most of the operating locations in Taiwan, including ordinary offices, industrial parks, export processing zones, science parks, free trade ports, agricultural biotechnology parks and environmental protection parks have to undergo and to pass the environmental assessments. Therefore, entities establishing operations in the parks will save costs for environmental protection. As the Parks have existing infrastructure and convenient administration, and provide various incentives, they are the number one choice for both local and foreign companies to establish production and R&D facilities and operating headquarters.

( 2014/04/10 Update )

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