With the economic disruption sweeping through Europe, the business community has witnessed an increased interest in expanding to new markets in the Eastern Hemisphere.
There are many countries to choose from, but what makes Taiwan the top location in East Asia for your investment or business expansion?
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1. Prime Location - the Gateway to the Asia-Pacific Markets
Located in the very center of the Asia-Pacific region, Taiwan's closeness enables reaching main global markets with ease, turning it into a crucial transportation and logistics center. Most Asia-Pacific metropolises are only a short plane ride away, be that Hong Kong, Manila, Seoul, Tokyo, Singapore, or even Sydney.
2. Innovation-Fueled R&D Heaven
According to the World Economy Forum 2019, Taiwan is the 4th most innovative economy worldwide. This result comes as no surprise since the early 2000s, the Ministry of Economic Affairs (MOEA) has been promoting the Multinational Innovative R&D Centers in Taiwan Initiative to motivate international companies to base their R&D centers in Taiwan. The Initiative has succeeded in connecting global companies with local Taiwanese enterprises and has turned Taiwan into the regional hub for R&D and industrial innovation.
3. Business-Friendly Government Policies
The local government is known for introducing initiatives that have turned Taiwan into a business- and startup-friendly hub. By reducing restrictions on foreign direct investment or establishing institutions that focus on aiding foreign companies with business expansion, Taiwan has gradually evolved into an SME heaven.
4. Taiwan as an Economic Hub
Ranking 7 in the World Competitiveness Yearbook (International Institute for Management Development) or 3 in Profit Opportunity Recommendation (Business Environment Risk Intelligence), or being a global leader in the ICT industry and a principal supplier of goods across the industrial spectrum (Government Portal of the Republic of China (Taiwan), Taiwan proves its vital position in the global economy. Taiwan's economy is highly competitive thanks to a range of factors, be that its immense development potential, R&D expertise, robust capacity to innovate, or talented and highly skilled human resources.
And how about the other way? In case you stand on the other side of the Western Hemisphere and consider expanding to the European market, here are 4 key reasons why choosing the Czech Republic might meet your business expectations.
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1. The Heart of Europe Equals the Gateway to Europe
Similar to Taiwan, the Czech Republic also attracts foreign investors thanks to its central location that enables reaching all parts of the European Union fairly quickly. Paired with EU membership and well-developed infrastructure, the Czech Republic enjoys its position at the crossroads of European trade.
2. Highly Skilled Workforce
With the luring inflation and energy prices going through the roof, labor costs are an increasingly important business factor. The Czech Republic combines the availability of graduates from technical fields with lower labor costs compared to any other western country. This positions the Czech Republic as option number one for technological, advanced manufacturing, or R&D-oriented enterprises.
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3. FDI Magnet
The Czech Republic has been an attractive FDI magnet since gaining its independence for various reasons. As a stable democracy with a free-market economy, the Czech Republic draws attention with its highly skilled workforce, well-developed infrastructure, and favorable labor costs. (Investment Climate
in the Czech Republic, Czechinvest). The FDI has been inpouring into the sectors such as automotive, IT, software, financial services, high-tech, IT, software, or R&D. (Czech National Bank, Foreign Direct Investments for 2018).
4. Stable Economic Development
The Czech Republic has not only been favorably rated by all three major rating agencies, Standard and Poor’s, Fitch, and Moody’s (Czech National Bank, Rating agencies), but since the early 2000s, the Czech Republic belongs to the thirty most advanced countries (World Bank). Despite the COVID-19 pandemic, the Czech Republic ranked the 18th richest country in the European Union in 2021 in terms of per-capita GDP based on purchasing power parity (Eurostat).