Friday, November 24, 2006

TAIWAN BUSINESSES CAN MAKE SPLASH IN CENTRAL ASIA: ACADEMICS

Taipei, Nov. 24 (CNA) Taiwan businesses can be successful in Central Asian countries such as Kazakhstan if they conduct in-depth market analysis and manage to find niche markets in the region, academics said at an international forum Friday.



With Taiwan's expertise in agricultural technology and competitiveness in the food-processing industry, businesses in these sectors should seriously consider investing in Central Asia, said Nuraniye Ekram, a researcher at the Turkey National Security and Strategic Institute, Pacific Asia Laboratory.



Ekram made the suggestion in her comments on a thesis by Sophie Huang, titled "Analysis on Kazakhstan food processing industry 2000-2003," at the annual Taiwan-Central Asia Forum, which was held in Chungli, Taoyuan County.



After breaking away from the former Soviet Union in 1991, the average annual salary of Kazakhs has been increasing because of an open economy. And Kazakhs spend more than half of their salaries on food expenses, Huang wrote in the thesis.



However, 80 percent of daily commodities in Kazakhstan still rely on imported products, which makes the food-processing industry a niche market for foreign countries, Huang wrote.



But Taiwan businesses should take note of a couple of things before rushing into Central Asia, Ekrams warned.



They will have to face the first challenge in language. In Kazakhstan, most people communicate with Russian, not English, she said.



Secondly, foreign businesses should understand the eating habits of Muslims, a religion shared by up to 70 percent of the population in Central Asia.



Taiwan businesses are also advised to make an in-depth analysis of Central Asian markets before making investments, as local markets for processed food in Central Asia have been dominated by countries such as the U.S., Turkey and China, Huang said.



If Taiwan businesses manage to meet these challenges, they are looking at a potential market of 56 million people, Ekram said.