Taiwan’s technology firms were the top performers in ASEAN markets in terms of sales as of the end of 2016, a report by China Credit Information Service Ltd (CCIS, 中華徵信所) published on Thursday last week showed.
Asus Global Pte Ltd, a subsidiary of Asustek Computer Inc (華碩), topped the list of 500 Taiwanese firms operating in the region, with sales of NT$368.73 billion (US$12.35 billion), the report said.
Hon Hai Precision Industry Co’s (鴻海精密) ECMMS Precision Singapore Pte Ltd, ranked second-highest, with sales of NT$331.26 billion, followed by Delta Electronics Inc’s (台達電) Delta Electronics International (Singapore) Pte Ltd, with sales of NT$225.14 billion, it said.
The CCIS report, the first of its kind, showed that total revenues from the top 500 Taiwanese firms in the region rose 20.89 percent annually to NT$2.58 trillion at the end of 2016, with net income rising 10.22 percent to NT$90.21 billion.
The report found that among the top 500 firms, 324 were manufacturers, with the remainder belonging to the service industry, including 16 financial companies.
A total of only 74 manufacturing companies fell under the technology sector, while 250 belonged to the traditional textiles, rubber, metals and petrochemical industries.
The results suggest that Taiwanese businesses could use technology more to expand soft power penetration in the region, as most are still operating under the export-oriented, contract-based manufacturing model, CCIS said.
Taiwanese companies should heed the differences in culture, spending habits and market conditions in each ASEAN nation, CCIS president Alice Kuo (郭曉薇) said, adding that success cannot be easily replicated across the region.
For instance, while President Chain Store Corp (統一超商) saw smooth sailing in its expansion into the Philippines, the company did not fare as well in Vietnam, Kuo said.
Acer Inc (宏碁), which despite having a distribution network across seven ASEAN markets, also reported significantly lower regional sales compared with Asustek, which is focused on tapping into the Indonesian market, she said.
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