Premier Sean Chen on June 27 received a briefing from the Council for Economic Planning and Development (CEPD) on efforts to reform traditional industries. He asked the council to work with other ministries to invigorate the industries by planning promotional activities highlighting the strengths of the industries they assist, introduce innovative ideas, and adopt appropriate branding, distribution and marketing strategies to add value and step up industrial transformation.
Chen pointed the example of Germany, where small and medium-sized enterprises form the backbone of the economy. Though they operate on a modest scale, the businesses are able to build globally competitive brands by finding a market niche and injecting innovation into their products. The premier believes Taiwan's traditional industries excel at production, but are often not as strong in marketing. These businesses should also pay special attention to intellectual property rights, plant variety rights, and trademarks and patents, while also training and retaining human resources to support these endeavors.
The premier remarked that the government encourages not only vertical integration of industries in the supply chain, but also horizontal integration among manufacturers. For the latter, he cited his visit last month to edamame bean plantations in Pingtung County as an example, saying the farm owners were able to produce and harvest beans on larger scales through cooperative farming arrangements.
The first phase of the CEPD's reform program will take place from 2012 to 2014. Ten "highlight" projects to accentuate the industries' special characteristics are expected to be added each year for a total of 50 in five years. The Ministry of Economic Affairs, the Ministry of Transportation and Communications, and the Council of Agriculture have each suggested ideas with strong potential. Chen said the number of potential projects added per year is flexible, and that ministries should strengthen cooperation with one another. He requested that the CEPD invite the ministries to contribute and help refine the projects.