Taipei, Oct. 17 (CNA) Taiwan is facing the prospect of a block of high tariffs in the AFTA (ASEAN Free Trade Area), but the Philippines could serve as its gateway to the Southeast Asian market given further bilateral economic cooperation, officials from Taiwan and Philippines said Wednesday.
Taiwanese products will be put at a disadvantage in the AFTA market as tariffs on all products within the 10 ASEAN member countries are to be completely eliminated by the year 2015, said Berton Chiu, Director General of Taiwan's Department of Investment Services, in a Philippines investment seminar.
If Taiwanese businesses intend to make a breakthrough, setting up production bases in Southeast Asian countries will be a must, and the Philippines is a good place for investment, Chiu said.
Having established a Taiwan-Philippines economic corridor linked by three economic and export processing zones, Taiwan's closest neighbor in the South is hoping to attract more investment from Taiwan. With that goal in mind, a delegation of officials from Philippines Economic Zone Authority (PEZA) , Calabarzon Regional Development Council and Philippines Ecozone Association (PHILEA) are visiting Taiwan.
The Philippine government has been encouraging private sector businesses to invest in its economic zones by offering incentives and assistance. Currently, there are 132 special economic zones operating in the country, said Lilia de Lima, Director General and chief executive of PEZA.
"As of now, there are 40-50 Taiwanese businesses operating in ecozones in the Philippines, including 18 in the Calabarzone, which comprised of five Luzon provinces...Among Taiwanese companies, 14 are in the apparel sector, seven in electronics sector while six are in textiles, " she said.
Taiwanese companies, especially those in the food industry, are encouraged to establish production bases in the Philippines and take advantage of the Philippines' high-quality pool of labor, Lima added.
The Philippines' infrastructure is probably not be as developed as others, but it provides businesses, especially the electronics industry, with a better turnaround time due to its proximity to Taiwan and strategic position in the Asia Pacific region, she said.
To strengthen bilateral economic cooperation, Ministry of Economic Affairs (MOEA) Minister Chen Ruey-long will be leading a delegation to Manila for a ministerial level meeting in November.