Taiwan losing control of Subic Bay to South Korea, China - report
Taipei - Taiwan, the main player in developing the Subic Bay Export Processing Zone of the Philippines, is losing its competitiveness to South Korea and China, a newspaper said on Wednesday
The China Times said that while Taiwan helped launch the Subic Bay free zone and made huge investment, it is now being edged out by later comers, especially South Korea and China.
"A South Korean hotel is being built in front of Taiwan's Wistro Corp and China's Jingniu glass company will start building a 320-million-dollar glass factory in May," the daily said.
South Korea's Hanjin Heavy Industry and Construction Co is building a 1.4-billion-dollar shipyard across the bay from the Taiwan Industrial Zone.
"Hanjin said it will hire 20,000-30,000 workers by 2010. It will certainly look like a Korea Town," the paper quoted Wistro Manager More Chuang as saying.
The paper said the biggest threat was that the competition could eventually drive out Taiwan, whose investment has been dwindling.
Subic Bay, 110 kilometres north of Manila, used to be a US naval base but was returned to the Philippines in 1992.
Taiwan moved into Subic Bay in 1994 by forming a joint venture with the Philippines to develop it into a free port, agreeing to develop 300 hectares in three stages.
The project was politically motivated because former president Lee Teng-hui wanted to develop unofficial ties with the Southeast Asian nations and was encouraging Taiwan manufacturers to invest in Southeast Asia under the "Go South Policy."
However, due to changes in Taiwan's policies and the difficulty in attracting Taiwanese manufacturers to open plants in Subic Bay, Taiwan's development reached only the second phase, and the number of Taiwan factories has dropped from 300 to 50.
"China's investment in Subic Bay has strategic considerations. But the Subic Bay is close to Taiwan and is our gateway to ASEAN countries. Taiwan should have a more open-minded view when considering investing in the Subic Bay," the paper quoted Wu Hsin-hsing, Taiwan's trade representative to the Philippines, as saying.
The China Times said that while Taiwan helped launch the Subic Bay free zone and made huge investment, it is now being edged out by later comers, especially South Korea and China.
"A South Korean hotel is being built in front of Taiwan's Wistro Corp and China's Jingniu glass company will start building a 320-million-dollar glass factory in May," the daily said.
South Korea's Hanjin Heavy Industry and Construction Co is building a 1.4-billion-dollar shipyard across the bay from the Taiwan Industrial Zone.
"Hanjin said it will hire 20,000-30,000 workers by 2010. It will certainly look like a Korea Town," the paper quoted Wistro Manager More Chuang as saying.
The paper said the biggest threat was that the competition could eventually drive out Taiwan, whose investment has been dwindling.
Subic Bay, 110 kilometres north of Manila, used to be a US naval base but was returned to the Philippines in 1992.
Taiwan moved into Subic Bay in 1994 by forming a joint venture with the Philippines to develop it into a free port, agreeing to develop 300 hectares in three stages.
The project was politically motivated because former president Lee Teng-hui wanted to develop unofficial ties with the Southeast Asian nations and was encouraging Taiwan manufacturers to invest in Southeast Asia under the "Go South Policy."
However, due to changes in Taiwan's policies and the difficulty in attracting Taiwanese manufacturers to open plants in Subic Bay, Taiwan's development reached only the second phase, and the number of Taiwan factories has dropped from 300 to 50.
"China's investment in Subic Bay has strategic considerations. But the Subic Bay is close to Taiwan and is our gateway to ASEAN countries. Taiwan should have a more open-minded view when considering investing in the Subic Bay," the paper quoted Wu Hsin-hsing, Taiwan's trade representative to the Philippines, as saying.
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12:24 PM
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