Q 1: What is the difference between the New Southbound Policy and the previous Southbound policy?
1. The “New Southbound Policy” takes “human beings as the essential” as its new economic strategy, enhancing the foreign economic trade pattern and diversification and putting an end to the past phenomenon of over-reliance on a single market.
2. The New Southbound Policy includes new scope (ASEAN's 10 countries, 6 countries of South Asia, Australia and New Zealand), new direction (strengthening diversified bilateral exchanges based on trade, investment, industrial cooperation, and talent exchange) and new support (extending the basis of trade, investment and industrial cooperation to the domestic demand market of the ASEAN).
3. The specific approach of the Department at this stage of planning is:
(1) Trade aspect: Expand economic and trade dialogues, e-commerce cooperation, and smart city system exports;
(2) Investment aspect: Update insurance agreement,i promote "ASEAN Strategic Partnership Project"; assist Taiwanese businessmen to invest together;
(3) Industrial cooperation: Promote dialog mechanisms, negotiate and sign MOUs, and promote the industrial clustering of Taiwanese enterprises.
(4) Talent training: Talent training and matching; select and sending students for internships in emerging market enterprises.
Q 2: What are the target markets of the New Southbound Policy?
A 2: ASEAN's 10 countries, 6 countries of South Asia, Australia and New Zealand, a total of 18 countries.
Q 3: Which ministries are driving the New Southbound Policy?
A 3: The planning is carried out by the New Southbound Policy Office, under the supervision of the Office of Trade Negotiations, Executive Yuan, and the relevant ministries and departments will be responsible for implementation.
Q 4: Will the New Southbound Policy provide relevant business information for the reference of enterprises?
A 4: In the information section, the Ministry of Economic Affairs, through its overseas units and TAITRA, will continue collecting business information and explore new business opportunities in the ASEAN and South Asian markets, and to give feedback to our industries on its website and other channels. Moreover, when Taiwan businessmen are unfairly treated abroad, the Government or overseas units will always use the opportunity to pay an official call to the local government to respond to the situation, so that the local government can immediately understand the needs of Taiwan businessmen and fight for their interests.
Q 5: What are the specific measures of the Ministry of Economic Affairs in the New Southbound Policy?
A 5: Based on the economic strategy and the three dimensions, the Ministry of Economic Affairs is, at the current stage, focusing on the development of the Southeast Asian market and the specific measures to planning the New Southbound Policy is as follows:
- Trade aspect: To expand the scope of the economic and trade dialogue platform so as to build closer partnerships; to promote the signing of bilateral economic cooperation agreements (ECAs) and join regional economic integration; to make fuller use of digital economy such as e-commerce to increase the export impetus and to build marketing channels and to promote smart city system exports to increase the momentum.
- Investment aspect: Update the investment protection agreement to create a favorable investment environment; promote the "ASEAN Strategic Partnership Project"; assist Taiwan businessmen to invest in clusters; expand overseas markets.
- Industrial cooperation: Promote industrial cooperation through dialogue mechanisms; negotiate and sign an MOU on industrial cooperation to promote cooperation between the two sides; and promote the clustering of Taiwan's industries.
- Talent training: Talent training and matching; selection and dispatch of college students for corporate internships in emerging markets; matching talents between Overseas Chinese and foreign students and the enterprises; layout of ASEAN talent exchange.
Q 6: How does the New Southbound Policy assist enterprises to invest in New Southbound countries?
A 6: Concerning Taiwanese businesses' home-coming investment and those investing in South Asia, the government, to help Taiwan businessmen cope with the changing economic and trade environment in ASEAN, the Department of Investment Services of the Ministry of Economic Affairs promoted the "ASEAN Strategic Partnership Project" in 2016. Via the dense network established by our country, the different ASEAN members' governments, the industries, the companies, the Association, the Taiwanese enterprises and by the organization of a strategic forum had prepared and set up an Investment Cooperation Promotion Group, has handled Talent Match Meetings involving Southeast Asian Overseas Chinese and foreign students. Assistance to manufacturers to "go out" to expand capability in the overseas market and "bring in" export business opportunities, talents, and investments. Through the negotiation of a new investment protection agreement and the establishment of an emergency response mechanism, a favorable environment for Taiwan investments is created.
Q 7: What are the benefits of the New Southbound Policy for SMEs?
A 7: Backed by the vast market of ASEAN and South Asia, it is hoped that the "New Southbound Policy" will enhance the export competitiveness of our country's enterprises, especially SMEs. Using this vast market as an extension of our domestic demand market to expand our industrial value chain and the scale of enterprise operations by reversing the phenomenon of an excessive focus on a single market and make our overseas markets more diversified.
Q 8: Does the Government understand the views of the business circles when promoting the "New Southbound Policy"?
A 8: The Government has continued communicating externally when promoting any major policy. The voice of the business circles is important to the Government in promoting the New Southbound Policy. The Government will continue to do so as a reference for governance. ASEAN and South Asia have high economic growth (over 6% in 2011-2015) and a market of nearly 2 billion people. Their vast business opportunities have attracted the attention of multinational corporations from around the world and have become a must-grab market for global strategists. The United States and Japan have also adopted a "Return to Asia" program, have actively laid out a southbound policy to strengthen economic and trade relations with ASEAN and South Asia.
Q 9: What are the specific measures of the Ministry of Economic Affairs in the New Southbound Policy?
- The “New Southbound Policy” takes “human beings as the essential” as its new economic strategy, enhancing the foreign economic trade pattern and diversification and putting an end to the past phenomenon of over-reliance on a single market. Based on the economic strategy and the three dimensions, the Ministry of Economic Affairs is, at the current stage, focusing on the development of the Southeast Asian market and the specific measures to planning the New Southbound Policy.
- Apart from promoting the New Southbound Policy, the Government has also actively sought to join the RCEP. Both of these are designed to help our business operators in the global economic and trade arrangements.