Looking South Episode #11 – One Year Recap

It’s been over a year since the New Southbound Policy kicked off. Eric Gau sat down with Jen-ni Yang, director general of the Bureau of Foreign Trade, to talk about what it has accomplished, and what its next steps will be.

Transcript:

Eric: Good morning everyone and welcome to another episode of Looking South here on ICRT, where we look at the government’s New Southbound Policy in all its different facets. Today, we are honored to have the director general of the Bureau of Foreign Trade Ms. Jen-Ni Yang on the program. Ms. Yang, welcome to the program.

 

Yang: Good morning Eric, and to all the ICRT listeners. I am so happy to have the chance to share with all of you regarding the Taiwan’s New Southbound Policy.

 

Eric: Start us off by reminding our listeners about what the New Southbound Policy is, and what it aims to achieve.

 

Yang: Okay, the New Southbound Policy is one of our key elements in Taiwan’s overall international economic strategy. The end goal is very simple. First, we would like to be friends with those people who are located in New Southbound policy areas. Secondly, we would like to find synergy with those countries to set up sustainable development in Southeast Asia and South Asia. So under this policy, in the past whole year, all the administrations we work together to implement the four areas. First, related to economic and trade cooperation. Secondly, regarding resources sharing. And thirdly, we like to have talent exchanges. And the last one is regional links.

 

Eric: So, Ms. Yang, this policy has been in place for over a year now. What are its accomplishments so far?

 

Yang: It’s already been almost one year, the New Southbound Policy up to the implementation has already achieved a lot. I’ll just give you some examples. First, in terms of trade, for almost one year until right now, Taiwan’s trade with those countries grew almost 11.7 percent, which is higher than the rate we have with other major trading partners. Secondly, in terms of tourism, since last year, the number of tourists coming from those countries, from the New Southbound Policy areas, has jumped almost 25 percent. In education, the number of students from New Southbound Policy countries, increased by almost 2,800 students over the previous academic year, and more than 30,000 students coming from these countries in total. And the most important thing is that we set up the Taiwan Halal Center in Taipei in April. The purpose is that we would like to set up a very friendly Muslim area, because in Taiwan, our Muslim population is already over 300,000 people. And we have a lot of diverse tourists coming to Taiwan, therefore we would like to set up a very friendly Muslim environment for those tourists. And lastly, we would like to introduce, would like those countries to understand us regarding trade. So we also held the Taiwan Expo and bilateral industrial summits, and also set up Taiwan Product Marketing Centers and entrepreneurs associations.

 

Eric: Now that we know what the policy has already done, what are the next steps?

 

Yang: Regarding the next step, because I just mentioned several achievements, the next step is that we need to focus more and deepen more on each subject matters. For example, right now we have already identified the five flagship projects, such as the development of industrial talent, medical cooperation and industry supply chains, innovation-based industries, regional agriculture, and policy forums and young people exchange forums. I think each project has a key item. For example, I just mentioned the medical cooperation. Our goal is now to set up medical and sanitary cooperation as well as industry supply chain development. In this region, we know there is dengue fever, so the Ministry of Health and Welfare is planning to set up an epidemic prevention transgenic technology center. So it will definitely be helpful to secure the health of the region by containing epidemic diseases.

 

Eric: Now, aside from the government’s own efforts, many businesses and educational groups, they’re also getting involved in the New Southbound Policy. What are your thoughts on that?

 

Yang: I think it’s very important. Our New Southbound Policy, I think it just sets up a platform, therefore it does not mean only the government involves in, but we also need more students, entrepreneurs. And more importantly, we have so many Taiwanese associations in those countries, they can involve in. So, so far, we are so glad to see that enterprises, education institutions, and other groups are actively participating in these projects.

 

Eric: Now, President Tsai Ing-Wen she repeatedly stressed that the New Southbound Policy is not about politics, it’s about trade and investment. The vast majority of Taiwan’s businesses are small or medium-sized enterprises. So, how will this policy help them expand their operations?

 

Yang: Okay, in general, I just mentioned that the government set up this platform to provide information and assist business matching opportunities to Taiwanese businesses looking to enter the 18 target countries of this policy. For example, last year, we have already established 10 entrepreneurs associations in New Southbound Policy target countries. Through these associations, they can exchange views and they can set up networks, and collect market and business information. In order to help Taiwanese entrepreneurs deploy into these markets, we also set up “Taiwan Product Marketing Center” in India, Myanmar, Indonesia, and Malaysia. The purpose is to let our businesses promote their products in those countries. And we also set up “Taiwan Desks” in Vietnam, the Philippines, Myanmar, Thailand, and India. Before setting up “Taiwan Desks,” our investors, they would like to do business in those countries, and they always complained that they couldn’t understand the laws and the regulations, because in those countries, their laws and regulations are sometimes in their local language. So, this time, the ministry set up “Taiwan Desks” can definitely help our investors make investments in those countries and facilitate their business. And then the last one, which I think is the most important one is how to help the businesses get funding. Last year, in order to help enterprises solve these financial difficulties, the government’s three major credit guarantee funds are providing a total of $50 billion New Taiwan Dollars to assist small and medium enterprises. Those projects I just mentioned, are all government efforts to provide to small and medium enterprises to do business in this area. So, in the last phase, the government will continue to help our Taiwanese small and medium enterprises expand their operations into New Southbound Policy target markets.

 

Eric: We’ve been chatting today with the Bureau of Foreign Trade director general Ms. Jen-Ni Yang. Ms. Yang, thanks again for sharing with us.

 

Yang: Thank you so much Eric. I’m so happy to share this information with you. If the listeners have any questions, you can directly contact me. Thank you.

 

 

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