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MOEA to promote fairly priced products in emerging countries

MOEA to promote fairly priced products in emerging countries

The Ministry of Economic Affairs (MOEA) has decided to target China, Indonesia, India and Vietnam for its 2010 market exploration efforts through a fair price-branding strategy, Economic Affairs Minister Shih Yen-shiang told a year-end news conference yesterday.
"The MOEA hopes to win customers' trust and to control distribution channels by promoting fairly priced high-end Taiwanese products in emerging markets through trade fairs, particularly in those four countries, through a branding strategy that will build Taiwan into a global operations hub," said Shih.
Predicting that the global economy will gradually regain momentum next year and will begin posting positive growth, Shih said emerging countries, rather than developed states, will play the role as the growth engine driving up the international economy.
Citing data compiled by the International Monetary Fund, Shih reported that China and India will become the world's second-largest and fifth-largest consuming powers by 2015, respectively.
Although this might sound an amazing development to many, the minister said it serves as a sign that Taiwan-based enterprises should seize the immense business opportunities that will arise from these markets.
The ascendance of the middle class in these emerging markets also points to the popularity of "fair price luxury" style and value-added products, providing Taiwan with a chance to tap into these markets with its high-end but inexpensive goods, he explained.
According to Huang Chih-peng, director-general of the MOEA's Bureau of Foreign Trade, the bureau will earmark NT$2 billion (US$ 61.53 million) to NT$3 billion in each of the coming three years to help subsidize the local industries that will be impacted by a proposed economic cooperation framework agreement (ECFA) between Taiwan and China and to help them break into the emerging markets.
Shih also announced that electricity and water rates will not be increased next year, while the existing transparent floating oil pricing system will also be maintained in response to international oil price fluctuations.
In response to a low approval rating that he received in a public opinion survey conducted by the China Times daily, the economic minister ascribed it to Taiwan's economic sluggishness and promised to fully carry out his duties to revive the economy.
Regarding the government's stance on whether local large-size flat-panel display and semiconductor companies will be permitted to set up factories in China, the minister said that a relaxation on existing restrictions must be approved by the Executive Yuan.
"The issue is still being studied by relevant government agencies and has yet to gain final approval from the Executive Yuan," he noted.
As to the question of whether the government will allow more investment from China, Shih said the MOEA has been assessing the feasibility of a second-stage opening after it made the first-stage opening on a trial basis in late June.
Commenting on pressure from the Legislative Yuan's Economics Committee, which wants the MOEA not to support a merger of the DRAM industry through an investment of NT$8.1 billion by the National Development Fund to form a Taiwan Innovative Memory Company (TIMC), Shih said the MOEA will continue to persuade lawmakers not to block the merger plan until the legislature has made a final decision.


Updated : 2021-05-06 16:03 GMT+08:00