The establishment of free economic pilot zones (FEPZs) is the government's most important economic development policy, Vice Premier Mao Chi-kuo said today while convening the third meeting of the Executive Yuan's FEPZ task force.
"FEPZ promotion cannot be delayed. Relevant ministries must do their utmost to achieve their objectives and proactively solicit investment, which will exemplify the nation's determination to see the program through," he said.
While the China (Shanghai) Pilot Free Trade Zone formally debuted in October, attracting worldwide attention, eight Taiwanese FEPZs launched in August—six at free trade ports, one at Taiwan Taoyuan International Airport (TTIA) and one at the Pingtung Agricultural Biotechnology Park. The vice premier directed various ministries to expedite deregulation in order to further advance their progress and efficacy.
Regarding the execution of the four industries action plan, Mao directed various ministries to actively solicit investment and help manufacturers set up shop in the FEPZs. He also directed the Ministry of Economic Affairs (MOEA) to formulate a concrete plan with specific timetables for facilitating industrial collaboration and establishing collaboration platforms to expedite cooperation between different free trade zones.
In the three months since the first-phase FEPZ plan was launched this August, the Executive Yuan's smart logistics and value-added agriculture promotion have already reaped results, officials said.
So far four smart logistics companies have moved into FEPZs—two to TTIA and one each to the ports of Keelung and Kaohsiung—and three more are now undergoing the application process.
The current seaport and airport FEPZs processed 10,378,000 tonnes of import and export cargo with a total of NT$501.9 billion (US$17 billion) in trade value from January to September of this year. These figures represent year-on-year increases of 55.5 percent and 48.4 percent, respectively, and trade value for the first nine months of 2013 was greater than total trade value for all of 2012 at these locations. This performance far surpasses the goal of 30-percent growth that had been set for first-phase smart logistics development, officials indicated.
As for value-added agriculture, the Council of Agriculture (COA) is carrying out smart agricultural service, technology development and international collaboration projects at the Pingtung Agricultural Biotechnology Park. Since July, 11 businesses have applied to set up shop in this FEPZ. Of these, eight have been approved, and they are committed to invest over NT$1.19 billion (US$40.3 million).
By the end of the year, two tea companies and two agri-processing firms will begin operations at the park following the "store in the front, factory in the back" business model for efficiency, and two aquarium firms will receive guidance on transshipment operations in order to facilitate their exports, the COA says.
As for the special act which is part of the second-phase FEPZ development, the Council for Economic Planning and Development reported to the Executive Yuan in mid-October that the draft is undergoing intensive review, and agencies' work on it is expected to be completed by the end of the year.