Total trade at the nation's five free trade zones (FTZs) reached NT$15 billion (US$455 million) last year, an encouraging figure that has led the government to take more active steps to try to attract more foreign investment in the FTZs, the vice chairman of the Council for Economic Planning and Development said yesterday.
Thomas Yeh (葉明峰) said that officials, including those at the Ministry of Economic Affairs and the Ministry of Transportation and Communications, have been working together to come up with new incentives to encourage businesses to invest in the FTZs.
The planned incentives -- including five-year tax breaks as well as other measures that facilitate convenient inward and outward flow of personnel and funds -- will target businesses in the international logistics, manufacturing and technical services sectors, Yeh said.
Yeh said his council believes the new incentives will bring in a "considerable" amount of investment that is expected to create numerous job and trade opportunities.
Key laws and regulations governing FTZs stipulate that the government should provide simplified customs procedures for businesses investing in these processing zones. For instance, goods must be reported but need not clear customs so as to save time and reduce the amount of inventory, eliminate the need for customs bonding and rebates, while providing flexibility in the use of funds, according to the council.
As part of efforts to attract more foreign investment, the officials plan to organize at least 13 presentations overseas this year to introduce the investment environment in the FTZs, Yeh said.
Council statistics from last month showed that 93 businesses operated in the FTZs, which are located at the Taipei and Keelung ports, the Taichung port, the Kaohsiung port and at Taiwan Taoyuan International Airport.
As of the end of last year, total investment in the FTZs had surpassed NT$9.9 billion.
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