The government is rejuvenating and adding value to traditional industries by introducing elements such as branding, new distribution channels, marketing, and technological research and development to their businesses, Premier Jiang Yi-huah said today.
The premier made these remarks following a report by the National Development Council (NDC) at today's Cabinet meeting on the progress of this initiative.
The NDC stated that the program, which runs from 2012 to 2019, is expected to promote 50 regeneration projects in traditional industry. These projects are projected to preserve these industries' present work force, create 25,000 new jobs, boost export value by NT$200 billion (US$6.67 billion), usher in private investment of NT$50 billion (US$1.67 billion) and help develop five international brands.
The program's first phase (September 2012-December 2014) covers 12 projects, its second phase (January 2014-December 2015) nine. All these projects are currently being implemented by various central agencies.
As of August 2014, some performance results had already surpassed the objectives of the first phase: 48,075 jobs had been created as opposed to the original goal of 29,599, and 106 new businesses had been formed, far above the initial target of 40.
Highlights of the second-phase results include assisting a manufacturer to develop integrated production lines for smart-panel furniture, creating the world's first set of custom-made furniture featuring a custom-spray-painting system. The selling price has been raised from NT$12 million (US$400,000) for the stand-alone equipment to NT$25 million (US$833,333) for the whole system.
In addition, the NDC has assisted shoe manufacturers to renovate their sales locations into venues aiming to appeal to all five senses. Customers can try on shoes there and receive specialized recommendation services that include an assessment of the health needs of their feet. It is estimated these improvements will help bring in an additional 3,600 customers and NT$6 million (US$200,000) in revenue every year.
Traditional industries have been crucial to Taiwan's economic development and the transformation of its industrial structure, Jiang explained. They are the driving force of the nation's industry, as they make up 90 percent of the nation's industries and employ 70 percent of the work force.
To help these industries keep up with the times, Jiang asked agencies that oversee the traditional industries to think proactively and assist them to rejuvenate so they can employ more workers, increase production value and transform successfully.
The plan is now part of the Ministry of Economic Affairs' Three Industries, Four Reforms program aiming to upgrade Taiwan's industrial structure. Jiang asked agencies to strengthen promotion of the rejuvenation program, keep track of its implementation results and conduct rolling reviews as the situation merits.