Investment Environment and Geographical Location

Kinmen County is part of Fujian Province, and is located in the Xiamen Bay southwest of Fujian Province's Jiulong River. Kinmen County is approximately 10 km east of Xiamen and is 277 km west of Taiwan. The county consists of 12 large and small islets. Kinmen County is a little over 150 km2 in size and has a population of 97,000. The county has over 110 km of coastline and over 30 km of Gold Coast beach in the south, which rivals Hawaii's beaches in beauty. Kinmen County has a subtropical marine climate with an average annual temperature of 20.9°C. The annual rainfall is 1,000 mm, and it is a suitable island for living and traveling.

Development Positioning and Strengths of Kinmen County

Policy Advantages

Kinmen County serves as a test area for both Taiwan and China. Because Kinmen County is geographically and historically close to Xiamen in China, it plays an important role in the peaceful development of cross-strait relations. Furthermore, it is also a test area for cross-strait policies. On January 1, 2001, the "Mini-three links" policy with Xiamen began, ending 50 years of separation between Taiwan and China and setting a foundation for peaceful cross-strait development.

Recent major policies to attract foreign investment

• Opening Taiwan to Chinese tourists

• Lowering estate taxes

• Opening Taiwan to Chinese investors

• Lowering business taxes

• Signing the ECFA

• Abundant domestic capital

Central government's support of Kinmen County policies in recent years 

• Kinmen Technology Academy was upgraded to National Quemoy University, which has become a platform for higher education exchanges between Taiwan and China.

• Use of the island for demonstrating low carbon and green energy cities, in order to develop a low carbon travel economy.

• Kinmen County's new medical care building has been completed and will be upgraded to a medical center. An international medical care park is being planned to develop medical tourism. This will turn Kinmen County into Taiwan's medical care window to China, and becoming a medical care center for both sides of the Strait 

• Duty-free policies for outlying islands will include duty-free boutiques, to develop a duty-free shopping and tourism economy.

• Construction of Kinmen Bridge started, at a cost of NTD$7.5 billion. The bridge is 5.34 km in length.

Development positioning and strategies

Develop an international-level tourism and leisure islet

Five development goals

• To become an international tourism and leisure resort

• To offer a duty-free boutique shopping experience

• To create a high-quality health and medical care island

• To establish Kinmen's boutique liquor culture

• To create an island of higher education for both sides of the Strait

Development Strategies

• Actively seek business investment, in order to leverage the capabilities and efficiency of private enterprises, and encourage private investment in Kinmen County.

• Actively develop duty-free policies for boutiques, to create a duty-free industry economy and move towards realizing a free trade zone.

• Actively transform local hospitals into medical centers, to build a good environment for "medical care industrialization."

• Promote a low-carbon, green energy, ecologically friendly, and tourism-oriented island.

• Develop industries that can complement China's twelfth five-year plan and industries in Xiamen, such as the low carbon green energy, medical care tourism, MICE, and yacht industries.

• The Kinmen County government is playing a leading role in promoting investment and providing discounts and investment rewards.

Geographical Advantages

Important Hub for Cross-Strait Exchange

On January 1, 2001, the "Mini-three links" policy with Xiamen in China was implemented. This transformed Kinmen County into an "economic belt" between Taiwan and China. Large numbers of tourists began to travel to and from Taiwan, transferring at Kinmen during the process. This drove Kinmen County's economic development and set the foundation for peaceful development between Taiwan and China. Currently, visitors to Kinmen can travel to six destinations in Taiwan and three destinations in Xiamen. All the locations are within one hour of travel of Kinmen County, making Kinmen an important hub between Taiwan and China. Kinmen is in close proximity to Xiamen City, a key center of economic activity in China. Because Kinmen County is so close to Xiamen, it plays an important role in peaceful cross-strait development. Exchanges between Taiwan and China became closer because Xiamen and Kinmen County are in the same economic system. Of the 30 million tourists who go to Xiamen each year, at least half will come to Kinmen County. This offers an excellent opportunity for the future development of Kinmen County.

Western Seaboard Economic Center

1. Kinmen is a three hour flight to Qingdao, Shanghai, Beijing, Chongqing, and Lanzhou an area that includes one billion people.

2. Within 400 km of Kinmen County (within the West Coast Economic Zone) are prefecture-level cities of Shangrao, Yingtan, Fuzhou, Wenzhou, Lishui, and Quzhou. These cities can be reached in two hours from Kinmen County and cover a population of 200 million.

Public Facilities

(1) Water supply

Kinmen County has completed a surface water purification plant, underground water supply station, water supply pipelines, and desalination plants. Since 1981, the water use penetration rate has been over 94%. Currently, the main sources of water come from lake reservoirs and groundwater, with desalination as a backup option.

(2) Electricity supply

Kinmen County's electricity is independently generated and distributed. Power is generated with super diesel and heavy oil fossil fuel power stations. Currently, 22,876 households are serviced, and electricity use is about 46,470 kW. In 2008, power use on Kinmen and Lieyu (little Kinmen County) was only about 60% of the power plant capacity and maximum load; thus, there is no worry about power shortages.

(3) Other areas

Land use, drainage, telecommunications, transportation, and broadband facilities are comprehensive, and can satisfy user requirements.

Basic Transportation Infrastructure

Kinmen County (main island) currently has 370 km of roads, and on average, each square kilometer has 2,500 meters of roads. The road system is mainly composed of Boyu Road (previously Zhongyang Road), Huandao East Road, Huandao West Road, Huandao South Road, and Huandao North Road. The road density in Kinmen County is comparable to that of the main island of Taiwan. After 20 years of planning, Kinmen Bridge officially began construction on January 9, 2011. The total length of the bridge is 5.34 km and costs NTD$7.5 billion. Relations between Taiwan and China are improving, and Kinmen County has transformed from a war zone to a peaceful tourism and vacation zone. This tourism can drive the future overall development of Kinmen County. The greatest significance of the Kinmen Bridge construction is that cross-strait relations have left the previous war footing, and are moving towards peace.

Kinmen Airport currently has flights to Taipei, Taichung, Chiayi, Tainan, Kaohsiung, and Penghu. There are an estimated 84 flights a day to Taiwan, with a transportation capacity of 2.5 million people per year. After the third phase terminal expansion is complete, the annual passenger volume will increase to 3.5 million people per year. International flights to Hong Kong, Macao, Japan, Malaysia, and Singapore will be added.

Liaoluo Port is a cargo port that can moor 5000 DWT cargo ships. Kinmen Harbor is a transfer harbor for foreign travelers, and is the main passenger harbor. The Kinmen County tourism and leisure harbor and the Kimen and Lieyu (little Kinmen County) passenger/cargo harbor have opened passage to the Xiamen Dongdu Pier, Wutong Pier, and Quanzhou Shijing Port. There are 42 voyages a day, and two million people can be transported per year. Passage to China Zhangzhou is also being planned. After the third phase berth expansion project was completed at the end of 2010, the number of passengers that can be transported per year increased to three million. Upon the completion of the Kinmen International Harbor new construction project, the annual passenger transportation number can exceed five million people and can accommodate 16000 DWT cruise liners.

Employed Population

Labor force

Kinmen County can provide a labor force of approximately 35,000 people, nearly 90% of whom work in the secondary and tertiary industries. Apart from the Kaoliang liquor industry, Kinmen County lacks large-scale manufacturing and service industries. This means that is sufficient idle manpower. However, wages tend to be low.

Talent cultivation

Kinmen County currently has a university, a high school, and a vocational school. National Quemoy University, Ming Chuan University, and National University of Kaohsiung have all established institutes or on-the-job courses. The National Open University and community colleges also provide supplemental courses that can meet theneeds of companies for medium or low-level and professional talent.

Public investment construction in the next few years

12 Kinmen Projects

• Kinmen International Harbor new construction project

• Liaoluo Port expansion project

• Kinmen Bridge construction project

• Kinmen Airport to Kinmen Harbor expressway new building project

• The original Huagang Underground Hospital development project

• Industrial/commercial combination area second phase development project

• Jinsha industrial area development project

• Low carbon green energy demonstration island project

Economic Affairs Department, Kinmen County Government

• Website: http://www.kinmen.gov.tw/KinmenWeb/wSite/page/10.html

• Add: No.60, Minsheng Rd., Jincheng Township, Kinmen County 89345, Taiwan (R.O.C.)

• Phone: 886-82-326204 886-82-326539

• Fax: 886-82-372823 886-82-320433

Kinmen County Industrial Department and Investment Promotion Committee

• Add: No.60, Minsheng Rd., Jincheng Township, Kinmen County 89345, Taiwan (R.O.C.)

• Phone: 886-82-324836

• Fax: 886-82-320049

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