Taipei, May 18 (CNA) Despite Ireland's economic woes, it is still a good option for Taiwanese investors because of its policy on direct foreign investment, which promises low corporate taxes and high incentives for foreign investors, Taiwan's representative to that country said Tuesday. Ireland's transparency, quality higher education, clear policies and sound integration of corporate and academic resources position it to bounce back soon from its PIIGS listing, said David Lee, head of the Taipei Representative Office in Ireland.
The PIIGS acronym refers to the European countries of Portugal, Italy, Ireland, Greece and Spain, which have been plagued by government deficits, huge national debts and high unemployment rates.
According to the British Broadcast Corporation (BBC) , Ireland's estimated gross debt in 2010 is expected to be 82.9 percent of its gross domestic product (GDP) and its current jobless rate is 13.3 percent.
Nonetheless, Lee said, Ireland could serve as a springboard or gateway for Taiwanese businesses looking to break into European markets.
"Ireland will be able to rise from its economic slump and other troubles because it has a sound national structure and has always been able to adapt quickly," said Lee.
In the two decades before Ireland was hit by the 2008 financial crisis, it was known as the Celtic Tiger because of its strong economy and fast economic growth, Lee noted.
However, several Taiwanese investors have pulled out of Ireland recently and have opted to relocate in other countries such as Poland because of rising wages, he said. Taiwan has experienced a similar problem of high production costs forcing local businesses to move to China, he noted.
"The more I learn about Ireland, the more similarities I see with Taiwan, " said Lee, who has been stationed in Dublin since May 2008.
In some ways, Ireland-United Kingdom (U.K.) relations are very much like Taiwan-China relations, he said.
Like Taiwan, "Ireland is an island country off the coast of a regional power," he said. "Some 70 percent of Irish exports go to the U.K. market, while 40 percent of Taiwan's exports are to China." In addition, Ireland and Taiwan are both facing the challenge of moving up the value chain in terms of industry upgrade and corporate branding, Lee said.
He encouraged other Taiwan businesses to follow in the footsteps of G-LED Lighting -- a green energy manufacturing company that has invested 5 million euros in Ireland -- and take advantage of the incentives being offered and the country's focus on developing green energy, its financial sector, and the medical equipment and bio-tech industries.
He also urged that more Taiwan students and tourists visit Ireland, which he said is known for its rich history, literature and scenery.
Since Ireland granted Taiwan visa-free status last year, the number of Taiwan tourists to that country has increased and "it is now common to see Taiwanese tour groups on the streets of Dublin," Lee said. (By Chris Wang) enditem /pc