Covering The Multicultural Asian American Community in Georgia
www.atlaff.org
October 10, 2013
TAIWAN
Special Report The Double Tenth Day is also known as the National Day of Taiwan. In conjunction with the celebration, Georgia Asian Times present a special report on the island republic as gateway to markets in Asia, the Taiwanese diaspora in metro Atlanta, Taiwanese business investments in Georgia, an insight look on the yacht building industry, and a visit to a popular restaurant in Taiwan.
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October 10, 2013 Georgia Asian Times
Georgia Asian Times October 10, 2013
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TAIWAN SPECIAL REPORT
Taiwan:
Strategic Gateway for Georgia Business Into China and Asia The Swiss-based International Institute for Management Development’s (IMD) 2012 World Competitiveness Yearbook ranked Taiwan seventh in the world in terms of overall competitiveness and fifth in government efficiency.
In the first half of 2013, Taiwan has taken several definitive steps towards defining itself as an important trade hub in the Northern and East Asian corridor. Taiwan signed a Free Trade Agreement (FTA) with New Zealand in July 2013.
This is reflected in Taiwan’s comprehensive protection of intellectual property rights, sound legal system, and modern infrastructure.
In 2012, Taiwan’s exports to New Zealand accounted for about 10 percent of total Taiwanese exports, while imports from New Zealand to Taiwan were worth about 30 percent of total Taiwanese exports.
The private sector benefits from a well-developed commercial code, and open-market policies that facilitate the free flow of goods and capital. Small and medium-size enterprises have been the backbone of Taiwan’s dynamic economic expansion. Despite the ongoing global economic uncertainty, the country’s average annual growth rate has equaled almost 4 percent over the past five years. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little from the Asian Financial Crisis of 1997-1999 compared to many of its Asian neighbors. Unlike neighboring Japan and South Korea, small and medium-sized businesses make up a large proportion of businesses in Taiwan, accounting for 97.7% of all enterprises.
Taiwan signed the Economic Cooperation Framework Agreement (ECFA), a preferential trade agreement with the People’s Republic of China on June 29, 2010. The ECFA seeks to provide a framework for Taiwan and China to gradually reduce tariffs on goods, remove non-tariff trade barriers, open up service sectors, and lift investment restrictions, thereby promoting closer cross-strait economic cooperation and interaction. The deal was the most significant agreement between the two sides since the Chinese Civil War in 1949. The agreement will add momentum to the existing $110 Billion bilateral trade between both sides. A $11.5 Billion Taoyuan Aerotropolis
project was officially launched in 2012. The project involves expansion of existing airport terminals, special zones for cargo, passenger and logistics services, and the establishment of aerospace industrial park. It aims to be a major transportation hub for East Asian region capable of accommodating 4.5 million tons cargo and 60 million passengers annually by 2030. Due to positive cross-straits relations, China has allowed 54 of its cities to have direct flights to Taiwan. The number of weekly flights between China and Taiwan increased to 616 starting March 2013. With a common core language and culture affinity, Taiwanese businesses have long developed extensive networks of relationship and contacts along with substantial trade and investment experiences in China for the past 30 years.
Many multinational corporations (MNCs) are taking advantage of this unique cultural strength by recruiting Taiwanese executives to manage their Greater China operations. Taiwan is a member of the Asian Development Bank (ADB), the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Taiwan is also an observer at the Organization for Economic Co-operation and Development (OECD).
Opportunities for Georgia Business Georgia companies have substantial opportunities to expand their businesses and economic cooperation with Taiwan. Taiwan is currently ranked seventh largest export market in Asia for the state of Georgia. Among the Georgia companies that
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October 10, 2013 Georgia Asian Times
TAIWAN SPECIAL REPORT have operations in Taiwan included UPS, Focus Brand, Crawford & Co., and Wing Zone, according to David Wang, Economic Division of Taipei Economic and Cultural Office (TECO) Atlanta. “NBA (National Basketball Association) and American fast food are very popular among young Taiwanese demographic,” adds Wang. Georgia exports to Taiwan recorded $586 million in 2012. Poultry, agriculture products, chemicals, and airplane parts are among the leading items. The Georgia Department of Economic Development leads a Georgia delegation to promote food companies at the annual Food Taipei Show, a leading international food fair to introduce new products on the Taiwanese and Asian markets. “Green and renewable energy technologies, agriculture and food manufacturing, transportation and logistics have good growth potentials in Taiwan,” adds Wang. Eligible Taiwanese passport holders are now able to visit U.S. without visas starting November 1, 2012. Taiwan joins 36 other countries approved to join the U.S. visa-waiver program. Inclusion in the program allow qualified Taiwanese passport holders to enter U.S. for tourism and business purposes for up to 90 days visa-free.
the United States in 2011, spending an estimated US$1.1 billion. With the introduction of the visa-waiver scheme, the numbers are expected to rise. Projected travel numbers may increase as much as 30 percent, according to Taiwan travel agents. Taiwan was recently invited to join the International Civil Aviation Organization (ICAO) assembly in Montreal, Canada. It’s involvement with ICAO will ensure its compliance with the latest aviation safety standards and enable it to work with the global community to improve the quality and efficiency of air travel throughout the world. Taiwan’s major hub, Taoyuan International Airport, is one of the busiest in the Asia Pacific region. It ranked 16th globally in international passenger traffic by Airports Council International in 2012. Fifty-eight domestic and foreign airlines connect Taiwan with 117 cities worldwide. Participation will strengthen Taiwan’s capability in regulating and servicing civil aviation in the region, and help it to better protect the rights and benefits of all passengers, according to Steven Tai, Director General of Taipei Economic and Cultural Office in Atlanta.
“The visa waiver is a big factor in tourism and business travel. It will help increase more business visitors to Georgia,” said Fred Chiou, President of Taiwanese Chamber of Commerce Georgia. More than 290,000 Taiwanese visited
Taiwanese community in metro Atlanta and Georgia If buying a home is the American dream, then Taiwanese immigrants are living it; over 76 percent owned their home in 2010, far ahead of immigrants overall and slightly higher than the ownership rate among the native born. Dr. Sueling Wang, President of Color Imaging, an aftermarket toner manufacturer based in Norcross, exemplify the Taiwanese immigrant who had succeeded in the American dream. He started his business in 1989 and has grown into a successful multinational company with over 100 employees. Georgia is home to about 30,000 Taiwanese immigrants, making them among the fourth largest Asian immigrant group in the metro Atlanta area. Although they share some of the same characteristics as the Chinese and Hong Kong born, Taiwanese immigrants are counted separately from them. Also, the group is likely undercounted as some Taiwanese born have identified themselves as “Chinese” in the race category of census forms. Many Taiwanese left home as students in the 1960s and 1970s. A large number stayed because the United States offered opportunities that Taiwan did not, as well as democracy and freedom at a time when their homeland was still under political repression. By the late 1970s, those who had settled in the United States had brought their families over. The Taiwanese American community has since developed a strong diaspora identity, keeping both political and business ties between the United States and Taiwan. A number of factors slowed emigration in the late 1980s and 1990s and even encouraged some Taiwanese immigrants to return, including a more democratic society following the end of martial law in 1987, a strengthened economy that needed the diaspora’s skills, and a higher standard of living.
New World Trade Center Exhibition Center located at the harbor front of Kaoshiung.
Although the United States used to be a major destination for Taiwanese students,
today more Taiwanese students are attending universities at home. Among those who study in the United States, a declining share settle down for the long run. Over a couple thousand Taiwanese students are enrolled in universities in the South. About 1200 students are enrolled in Georgia, according to figures by TECO Atlanta. “Many students returned to Taiwan upon graduation for better opportunities. Taiwan is a more exciting place to live for young people,” explains Dr. Sueling Wang. Many students who stayed on have become entrepreneurs or employed with corporations. Taiwanese entrepreneurs are active with the Taiwanese American Chamber of Commerce or Monte Jade Science and Technonology Association, southeast chapter. The Taiwanese American entrepreneurs are reconnecting with their roots. Many have found trade opportunities available back home and in the greater mainland. “Taiwan provides opportunities in trade and investment. Since it has established extremely close business connections on mainland China, Taiwan also acts as a gateway to do business on mainland China for the enterprises in Georgia,” said Jimmy Ho, Georgia Advisor Committee Board member of Overseas Affair for Taiwan. Since its founding in 1988, the Atlanta Taiwanese Chamber of Commerce have over 35 member organizations. Members representing diverse industry ranging from banking, financial services, real estate, insurance, and technology are active participants of the organizations. “We also facilitate potential investors from Taiwan seeking business opportunities in Georgia,” said Fred Chiou, President of Atlanta Taiwanese Chamber of Commerce.
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TAIWAN SPECIAL REPORT
Taiwan’s Yacht Building Powerhouse By Li Wong The history of Taiwan’s yacht manufacturing industry can be traced back to the 1960s. Yacht builders was first prompted by American military advisors stationed on the island over 50 years ago, which naturally made USA the biggest market for the industry. Over the past five decades, the industry at first flourished, then internationalized during the 1980s, before experiencing a rapid decline in the 1990s. Presently following industrial transformation and the development of proprietary brands in Taiwan, the exquisite craftsmanship, high level of customization and superiority of Taiwan’s yacht industry has once again gained recognition from global buyers. According to ShowBoats International’s 2013 Global Order Book, Taiwan outranks Germany as the 6th largest yacht manufacturing country in the world of yachts 80-foot or above, with 4,272 feet in total.
Amongst Taiwan’s cluster of luxury yacht builders in Kaoshiung, Horizon Yachts Company leads the way and is the only company among Asian builders ranked in the 10th Mega Yachts manufacturers in the world. Horizon Yachts Company was founded in 1987 by John Lu, who has a deep passion for boats and a love of the ocean. Upon graduating from National Taiwan Ocean University with a degree of naval architecture, Lu returned to his hometown of Kaoshiung to gain experience in the yacht industry. The Taiwan yacht industry was prospering when Lu created Horizon. However, from 1987 to 1997, Taiwan’s yachting industry encountered an unexpected recession. Horizon adjusted its business strategy and in 1989 shifted target markets to Europe, Australia and Asia. Horizon then redeveloped its yacht manufacturing processes, adhering to stringent yacht quality and safety requirements in Europe and Japan, and earned a distinct reputation for building yachts of exceptional quality and value. Horizon survived recession and emerged stronger. Lu continued expanding Horizon in the following years: from 2000 to 2005 and formed the Horizon Group which consists of 4 companies; Vision Yachts produces smaller sized yachts, Horizon Yacht produces medium to large-sized yachts,
Horizon Yachts Company is the only Taiwanese company among Asian builders ranked in the 10th Mega Yachts manufacturers in the world.
and Premier Yacht produces customized and classed luxury megayachts. The fourth and final component, Atech Composites, focuses on creating stronger and lighter hulls for the three shipyards. Horizon Group currently produces yachts from 46 feet to 163 feet. The company currently has over 630 customers worldwide. Its largest market is the U.S. (51 percent) followed by Europe (22 percent), Asia (11 percent) and Australia-New Zealand (13 percent). Horizon Group currently employs over 700 employees and operates three manufacturing shipyards located near Kaoshiung harbor. The main challenges facing Taiwan’s yacht manufacturing industry
are branding, cash flow, and skillful workforce. Inevitably, local builders are moving their productions to China for cost savings, according to a Horizon Yacht spokesperson. Adhering to a global customers demand for quality after-sales services and maintenance, Taiwan’s manufacturing clusters are eager to source various products, technologies and services from overseas suppliers. Cutting edge hardware components and accessories; deck hardwares; green energy technologies; innovative yachting equipment and services; and qualified naval architects along with exterior and interior designers are highly sought after. 60 percent of all Taiwanese yacht manufacturers are based in the Greater Kaohsiung area; Kaohsiung accounts
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TAIWAN SPECIAL REPORT
for 19 of the country’s 35 yacht manufacturers, and 80 per cent of the industry output; while 90 per cent of Taiwan built yachts are exported via Kaohsiung Harbor. As the capital of Taiwan’s yacht industry, Kaohsiung was recently chosen as the city to organize the “2014 Taiwan International Boat Show.” The announcement adds momentum to the steadily growing prevalence of boating in many parts of the wider region. Construction of the new Kaohsiung
Exhibition Center is currently underway and is due for completion by the end of 2013. Upon completion, the center will boast a column-free 80-feet high ceiling for the display of large boats and yachts. About 40,000 square feet of on-water space will also be available for boats in Kaohsiung marina. The exhibition will be held between May 8-11, 2014, and it is expected to become the most anticipated event in the region.
Case Study: DEPO AUTO PARTS Taiwanese business investment in Georgia By Jackson Chang Depo Auto Parts Ind. Co., Ltd (6605:TAI) is one of the top 20 international brands out of Taiwan in 2009. With brand value of more than USD $50 million and USD $564 million market cap, Depo Auto Parts Ind. Co., Ltd is one of the most important player in the auto parts industry in the world. Depo Auto Parts has formed a subsidiary Maxzone Auto Parts Corporation to operate their United States foot print with headquarters in California and distribution warehouse in New Jersey, Illinois, and Georgia. In the early operation of Maxzone Auto Parts Corporation is located in the South Fulton Area of Georgia with 60,000 square foot of warehouse space. Within a short time frame, they have outgrown their square footage and they started searching for warehouse space that is closer to their customers. With majority of their customer located in the northern region, they focus their search in that direction. After several months, they finally found a suitable location on Jimmy Carter Boulevard that has over 100,000 square foot of warehouse space along with multiple delivery and receiving bays. The warehouse is located in the city of Norcross limits with easy access to 141 and Buford Highway. They chose this location in Gwinnett county due to close proximity to their customers. It is also easy access for their employees who lives in Gwinnett, North Fulton, and North DeKalb area.
Trained craftsmen spent long hours building customized yachts for customers from around the world.
Prior to the closing of the real estate transaction, the President of Maxzone Auto Parts Corporation Mr. Hsu has met with Mr. Nick Masino of the Gwinnett Chamber, Mr. Herman Penammon of Georgia Power, and Mayor Bucky Johnson of City
of Norcross. After the meeting Mr. Hsu felt very confident that his business will be able to successfully operate in Gwinnett County in a short amount of time with limited down time to transfer his warehouse from existing location in South Fulton to this new facility. So he finalized the real estate transaction and set the goal to be in full operation within 35 days timeline. There were some major construction challenges that presented in the new space, such as height limitation, energy saving systems, heating and cooling system, and sprinkler system. These challenges was identified early in the construction process and was presented to Gwinnett County Officials for review, from Fire Marshal’s office to Building Code Enforcement. Everything seemed to work out seamlessly with each of the branch of the Gwinnett County Office. They are able to overcome difficult challenges that was identified in the construction process and were able to approve Certificate of Occupancy on the 29th day. Maxzone Auto Parts Corporation was able to be fully operational on the 30th day of construction timeline. The facility is one of the state of art facility in Georgia with computer guided fork lifters, RFID product tracking systems, energy efficient lighting systems, and inventory check system that will route any order to another warehouse to be filled for the customer to mitigate any down time on the Customer site. It is truly one of the most advance warehousing systems in the State of Georgia. About the author: Jackson Chang, Managing Director, Golden Seed International Group 3296 Summit Ridge Parkway Suite 1630, Duluth, Georgia 30096
Georgia Asian Times October 10, 2013
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TAIWAN SPECIAL REPORT Dumplings Made Famous in Taiwan By Li Wong I have been advised to sample various types of ethnic cuisines during my recent visit to Taiwan. Several have mentioned that it is a must to visit a dumpling restaurant which is synonymous with Taiwan - Din Tai Fung. It has become so famous that a popular American blog site BuzzFeed recently poke fun at its links with being Taiwanese. I had the opportunity to visit the restaurant located at ground floor of Taipei 101 Tower to sample the famous Xiao Long Bao and other delicacies. Tom Cruise had visited the same restaurant only a week earlier when he was in town to promote his latest film. His appearance at the Taipei restaurant was validated by photographs of him smiling with the dumpling chefs. Din Tai Fung was founded 1958 in Taipei originally as a peanut oil retailer. As time changed and packaged salad oil was introduced, the owners had to subsidize their oil business by selling steamed buns on the side.
Along with the dumpling, I ordered two types of buns: pork and red bean. The buns were freshly steamed and the texture for the exterior of the bun is extremely refined. The skin was soft like marshmallow and simply melted in your mouth as you bite into it. The pork bun fillings were done just right and didn’t overpower the gentle flavor of the bun. The red bean paste filling was sweet and delightful. Each individual Xiao Long Bao is precisely hand made with exactly eighteen pleats, no less, no more. And each bun weighs exactly the same with the same amount of meat. The tasty dumplings are the ones with soup inside when served and you absolutely want to enjoy it with the soup. The proper way to enjoy Xiao Long Bao is to place one completely intact in a spoon, drizzle the vinegar, place a few strands of ginger on top and enjoy the whole thing in a single bite.
The delicious steamed buns at Din Tai Fung became popular it exited from the oil business in the 1980’s and became a full time restaurant business.
The restaurant chain have received international accolades and was ranked as one of the world’s top restaurants since 1993. Its branches in Hong Kong and Macau also received recognition of one Michelin star in 2010.
Today, Din Tai Fung serves their delicious delicacies in Australia, China, Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, USA and Canada.
Los Angeles and Seattle are currently the only cities in the United States where you can sample the dumplings.
For starters, I ordered cucumbers with chili oil and garlic. Another dish is tossed tofu with seaweed and bean sprouts. Both of these dishes are served cold. The tofu salads is mild and savory. The cucumbers are spicy, crunchy and tasty.
I can only bet that Din Tai Fung will be a hit when it opens its first restaurant in Atlanta serving dumpling lovers in the South.