Taipei, Sept. 19 (CNA) The European Union (EU) is confident in the strength of Taiwan's economy, a fact testified to by its presence as the largest foreign investor in Taiwan, and it welcomes further investment from Taiwanese businesses as well, said an EU official Wednesday.
While bilateral trade remains strong, Taiwan's investment in the EU pales in comparison with that of other Asian countries, squandering a great opportunity to access to a market of 500 million customers, said Guy Ledoux, Head of the European Economic and Trade Office (EETO) in Taiwan.
Taiwanese businesses should not hesitate to invest in the EU, a safe and secure market with clear rules, standards and transparency, Ledoux said, adding that the EU is also equipped with great infrastructure and connections between its 27 member states.
Ledoux stressed that the incorrect perception of EU's expensive work force should be corrected, because the EU has been working hard to tackle the issue and increase work hours. It also offers cheap land and tax breaks to foreign investors.
At one billion Euros, Taiwan's stock of investments in the EU is very small compared to that of Singapore or Hong Kong, both of which have invested around 14 billion Euros, while South Korea has committed 5 billion Euros.
The EU is a more attractive market than China, where the majority of Taiwan's FDI (foreign direct investment) has gone, Ledoux said. Between 2004 and 2006, the EU attracted an average FDI of US$72 billion a year while China attracted US$68 billion. Clearly the perception that the EU is a difficult market to invest is wrong, he claimed.
Trade volumes between Taiwan and the EU remain high, said Pit Kohler, Deputy Director-General of German Institute, but Taiwanese businessmen have been reluctant to invest in Europe.
To help Taiwanese businesses better understand Europe, the EETO has published a brochure titled "Invest in the EU," which can also be downloaded from the Internet. Sixteen of the EU's member states which have set up offices in Taipei sent representatives to attend the book-launch.