Taiwan ranks 25th on Best Countries for Business list

By Audrey Wang

Taiwan advanced one spot to No. 25 in the fifth annual Best Countries for Business list published by U.S.-based magazine Forbes Sept. 8.

A dynamic capitalist economy complemented by decreasing government regulation of investment and foreign trade was responsible for Taiwan’s strong performance in the report. Among Asian countries, only second-placed Hong Kong and Singapore at No. 5 finished ahead of Taiwan.

According to the report, exports are a major driver of Taiwan’s economy, accounting for 70 percent of gross domestic product. In terms of trade activities, Taiwan runs a large surplus and boasts the world’s fourth-largest foreign reserves.

But a heavy dependence on exports has made the country increasingly vulnerable to drop-offs in global demand, Forbes said, adding that in 2009, Taiwan’s GDP fell 2.5 percent due to a 20-percent year-on-year decline in exports.

In addition, the report identified diplomatic isolation, a falling birth rate and rapidly aging population as long-term challenges the country must tackle.

At the end of last year, Taiwan’s average birth rate stood at 1.2, one of the lowest in the world. Forbes sees this as a contributing factor in future labor shortages, falling domestic demand and declining tax revenues.

On the issue of economic isolation, the report noted Taiwan’s exclusion from East Asian regional integration, but also mentioned a significant increase in cross-strait exchanges since ROC President Ma Ying-jeou took office in May 2008.

Taiwan has focused much of its economic recovery effort on improving cross-strait economic integration, Forbes said, adding that this has opened the country to greater investment from mainland China and provided new opportunities for Taiwan-based businesses.

Mainland China and the U.S., Taiwan’s biggest trading partners, were ranked in the report at No. 90 and No. 9 respectively. South Korea, the country Taiwan views as an economic rival, finished 30th.

The Best Countries for Business report was first compiled by Forbes in 2006. It examines 128 economies, with rankings calculated on 11 factors. These include innovation, property rights, red tape, technology and trade freedom.

Taiwan Today, Government Information Office, Republic of China (Taiwan), 13.09.2010

Die Presseabteilung der Taipeh Vertretung mit Sitz in Berlin bietet folgende Dienstleistungen an: Erläuterung der Politik und der Entwicklung der Republik China (Taiwan), Verbreitung von Stellungnahmen und Pressemitteilungen von taiwanischer Seite sowie Beantwortung von Fragen über das Land;
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This release was published on openPR.