Announcing PA's New Taiwan Trade Office

                  

Pennsylvania's Office of International Business Development is pleased to announce that Anemone Ventures is the Commonwealth's new Authorized Trade & Investment Representative in Taiwan.

PA based companies can access the services of the Taiwan trade office by contacting their Regional Export Network Office - WTC Harrisburg is the regional partner for southcentral PA based firms.  Examples of services include: 

·         Gathering marketing and competitive intelligence

·         Providing insight and analysis on market entry strategies

·         Identifying overseas partners, distributors and agents

·         Providing regulatory information

·         Identifying relevant trade events

·         Conducting foreign company background checks

·         Organizing in-country meetings and logistical assistance

·         Assisting with trade leads and more....

Additional PA trade offices are located in Australia, Canada, Central and Eastern Europe, China, Germany, India, Mexico, Middle East, Netherlands, Singapore, South Korea, and the United Kingdom.  These 13 offices cover 46 countries and services are available at no cost.

Here is why Taiwan is relevant now to consider in your next business expansion plan:

Taiwan is a leading technology based economy known among the four Asian Tigers (Singapore, HK, South Korea and Taiwan) and despite the COVID-19 global impact, Taiwan has been able to display a strong economic growth of an estimated 6% in 2021. 

Taiwan’s continuous economic growth over the past three years has been primarily driven by the island’s world-leading semiconductor manufacturers and their ongoing expansion. Other factors include the considerable investment from companies exiting China due to international trade disputes, China's internal crackdown on technological companies and the vigorous construction of renewable energy facilities in Taiwan. These growth engines have boosted investor confidence in Taiwan; attracting significant foreign investment to create a momentum on which substantial current and future renewable energy efforts are carried forward. 

Taiwan is a democracy with a sound legal system, strong Intellectual Property (IP) protection, and a well-educated and skilled workforce. These provide the foundation which has enabled Taiwan to position itself as a regional technology hub, highly attractive to multinational companies seeking business expansion opportunities on the island and in East Asia.

Taiwan is located within 4 in-flight hours from major Asian markets such as China, Japan, Korea, and Singapore. The island can thereby serve as a practical and logistical springboard into China and other markets in the Asia region.

The average voyage time from the South Port of Kaohsiung, the 15th largest in the world, to five major ports including Manila, Singapore, Hong Kong, Shanghai, and Tokyo is approximately 53 hours. It is an important bridge between Europe, United States, Japan and the emerging Asian markets, and a top choice for operation centers of multinational companies in Asia Pacific in addressing their logistics and supply needs.

 

Taiwan Key Facts:

• Population: 23.57 Mil
• Official Language: Mandarin
• Land area of 36,193 km2
• Major Cities (by population): Taipei (capital), Kaushuing, Taichung and Tainan 
• GDP: USD 759.104 billion (2021)
• GDP Per Capita: USD 34,880 (2021)
• 2022 GDP Estimated Growth 4.5%
• A super-aged society by 2026 
• Currency: USD 1.00 ≈ NTD 28.00

Taiwan as a Business Hub in Asia:

• Top 5 export destinations: China and Hong Kong, ASEAN, USA, EU, Japan (2021)
• High level technological workforce
• Relatively low operational costs 
• Modern and efficient infrastructure 
• Leading high-tech and OEM manufacturing
• Legal certainty

Taiwan International Ranking:

• 4th globally and 2nd in Asia in the Investment Environment Risk Assessment Report, 2021
• 8th most competitive economy, 2021
• 16th globally in the World Talent Ranking, 2021
• 6th Freest economy in the Index of Economic Freedom, 2021
• 15th Ease of doing business, 2020
• 5th Largest foreign exchange reserves, 2021
• 21st Ease of starting a business, 2020
• 2nd World’s safest country, 2020
• 30th Renewable Energy Attractiveness, 2021
• 22nd GDP Ranking, 2021

 

Industrial Clusters:
Taiwan has a comprehensive upstream, midstream, and downstream supply chain supporting their technology based industries and their need for customized components.

It has the highest industrial cluster density in the world. And its successful IT competitiveness mainly relies on superior high-tech infrastructure and R&D talent.

The industrial clusters have positioned Taiwan globally as:

• 1st in foundry and packaging & testing manufacturing
• 2nd largest producer of IT hardware equipment 
• 2nd in IC design industry
• 3rd in PC products

International Investments:
International corporations including Google, Microsoft, ASML, Corning, Micron and Ørsted have increased their investments in Taiwan to intensify collaboration in R&D, advanced manufacturing, and industry collaboration.

Yes, You Can Go Global!

Guest Blogger Kevin Smith
Principal, Global Sales Initiatives

 

Every business is focused on growth. This includes top and bottom lines, along with managing many details in between. In that pursuit, one of our daily challenges is finding new sources of revenue, whether it’s selling more of our current product set, developing new products or penetrating additional markets.

When we have multiple markets and customers within our reach, we can make decisions about which opportunities hit our sweet spot and which ones are less attractive, rather than feeling we must take everything that comes along in order to keep our business moving forward. This revenue generates the cash flow we need, and finances the necessary investment in the facilities, equipment and people we need to continue our growth cycle.

In the pursuit of revenue, a big step for small companies is making the decision to sell their products or services in another region of the world. If you have never sold outside the US before, this can be intimidating and you may find yourself asking “Where do I start?” The most effective way to address this challenge is to break it into manageable pieces. For example:

Do Your Homework – Understand why you want to sell overseas, where you should sell and why you think there is a need. This means knowing the market for your product or service. You may decide to immediately invest in costly market research or a market entry program however, to avoid spending a large sum of money prematurely, you can start by using resources that are available at no charge or have a minimal fee, and will allow you to learn about your targeted market and begin developing a plan. This is where resources like the Department of Commerce Export Assistance Centers, Small Business Development Center, World Trade Center and the State of PA Department of Community and Economic Development play an important role. These agencies and organizations have access to market data, experts on export regulations and documentation requirements, and representatives on the ground in many countries, who can help you understand the market and competitive landscape. Check out their websites to learn about what they have and how it can help you.

Develop A Plan - No plan is perfect and all plans will change as you grow. But in order to be successful, you must have one! As you do your homework and identify your network of resources, also begin to visualize and document your specific objectives, financial goals, budget, customer value proposition, potential barriers to entry and a Sales and Marketing strategy. If you need help getting started, the Small Business Administration (www.SBA.gov) provides a basic plan outline on their website. Remember to also use your network to find a mentor and ask for help at various stages of your planning process. The resources mentioned above can identify companies who have successfully navigated international markets. This will provide you with a valuable sounding board as they can explain the keys to their success and the mistakes they made along the way.

Align Your Resources - An important part of your planning process is understanding the resources you need to launch your global initiative successfully. This includes finding a lawyer to help with domestic and foreign laws, export regulations and contract reviews, securing the financing needed for your global transactions, working with a logistics company that can handle customs documentation and find the most favorable freight terms for you, identifying channel partners, defining your insurance needs, documentation translation requirements and many more. There are many resources required and many excellent service providers in the Harrisburg area who are happy to help, so ask for recommendations and work with them to develop a budget and timeline you can live with.

Commit - Once you have completed the homework, planning and resource activities, and you still believe establishing a global footprint is the right move for you, MAKE THE COMMITMENT! Position the capitol and resources to put your plan into action. This may include signing an agreement with a sales representative or channel partner who knows the local market and will sell your products, traveling to your targeted country or region to attend trade shows, translation of web pages, product brochures and business cards to the local language, or setting up an in country stocking location. Also keep in mind that new exporters may apply for a Market Access Grant sponsored by the Office of International Business Development within the PA Department of Community and Economic Development. MAG’s can provide you with up to $5,000 in matching dollars to help you fund these export activities.

Remember, there will be unexpected events that may require you to modify your plan, so analyze the situation, make the adjustment and keep moving forward with conviction.

Show Up  - Once you commit to penetrating a foreign market, it’s critical that you establish a visible presence in the targeted country or region. By now you have identified a channel partner who knows the local market to sell your products, but it’s also important to spend time on the ground there. Several reasons for this: 1) You will have a better understanding of the local market and customer requirements 2) Your partners and customers will need training as they begin to embrace your products 3) Communication is a key to your global success. Much of this will be done via email and phone, but you also need to see firsthand what is happening, provide clarification and direction, and avoid misunderstandings from language barriers. 4) Relationships are critical, and when you show up, your partners and customers know you are committed and will help you understand their culture, traditions and work environment which allows you to learn how to effectively conduct business with them. And when you share a meal, you will know more about each other personally and begin establishing the element of trust you need with your business partners. They are proud of their country, eager to make a good impression, and help your experience be a positive one. Plus, there is so much incredible food you can share!

Be Focused and Patient – We all demand results. After all, that’s why we are in business and how we measure ourselves. We are also impatient, and a key to our success is that we continually strive to achieve better results, faster. You should maintain that focus when doing business overseas, but you must also realize that you are now dealing with new people, rules, customs and expectations. Jump into your global initiative with enthusiasm and as you execute your plan and identify the opportunities and gaps, make sure you are patient and receptive to fresh ideas and approaches. There is a world of them out there.

Kevin Smith is a global Sales, Marketing and Business Development executive with over 20 years of leadership success at corporations such as Tyco Electronics, AMP Inc., and Philips, which includes senior management assignments based in Asia and Europe. As the Founder and Principal of Global Sales Initiatives LLC, he now focuses in two areas: 1) Working with small to mid-size US companies who want to accelerate top line growth by developing and executing a plan that identifies and penetrates new markets and customers, both foreign and domestic. 2) Partnering with foreign companies to develop a penetration plan and establish a presence for their products or services in the US.  Kevin received his degree in Business Administration from the Whittemore School of Business and Economics at the University of New Hampshire and lives in Harrisburg with his wife.

Pennsylvania's Free Export Assistance Services

Posted by Tina

Did you know that the State of Pennsylvania has the most comprehensive export assistance program of any state?  And that their services are offered mostly at no cost to companies in the Commonwealth?

We are very fortunate to be located in a State that is so forward thinking and committed to supporting PA companies with their global development efforts.  Here is a brief overview of the available resources through Pennsylvania's Center for Trade Development:

Free Export Assistance Services:  The State has partnered with 10 existing trade services providers located across the Commonwealth and provides funding to these organization so that they can offer free export assistance.  These services include market research, technical trade assistance and referrals to public and private trade facilitators.  The World Trade Center of Central Pennsylvania is the State's regional partner for an 8 county region in Southcentral PA.

  

Overseas Trade Offices:  Pennsylvania has a network of  20 overseas trade offices, these are local international business consultants who are contracted with the Commonwealth to provide very customized assistance to PA companies at no charge.  The majority of these offices have been working on behalf of PA companies for over 10 years and all of them have great connections to their local business community.  Remember, their services are very customized, but to give you an idea of typical requests for assistance from our region, here are some examples of their services:

• Gathering marketing and competitive intelligence
• Providing insight and analysis on market entry strategy
• Identifying overseas partners, distributors, agents, etc
• Providing regulatory information
• Identifying relevant trade events
• Conducting foreign company background checks
• Trade lead assistance
• Organizing in-country meetings and logistical assistance
• And much more....

Global Access Program Grants - GAP is a valuable tool available to qualifying companies seeking financial assistance and foreign market entry support. GAP will provide up to $5,000.00 in 1:1 matching funds per year to qualifying Pennsylvania companies to offset a portion of the expenses associated with export promotion activities, such as international business development trips, participation at international trade shows, translation of product literature and website globalization. This program is funded in part through a grant award from the U.S. Small Business Administration.  For more details, you can download more information.

International Trade Missions and Trade Show Participation - Every year, the State organizes several trade missions to key international markets as well as Pennsylvania Pavilion at major international trade shows.  Contact us for the most recent schedule of events.