Trade value in free zones to hit record NT $ 1 billion

  • By Shelley Shan / Journalist

The total value of trade in the country’s free zones is expected to exceed NT $ 1 trillion ($ 36 billion) this year thanks to higher prices for components associated with chips, the Ministry of Transportation and Transportation said last week. Communications.

The country has seven free zones at the ports of Keelung, Suao, Taipei, Taichung, Anping and Kaohsiung, as well as at Taiwan Taoyuan International Airport.

Since the ministry began administering the free zones in 2009, the value of trade in the zones has increased at an average rate of 18% per year, said the deputy director general of the Department of Aviation and Navigation, Han Chen-hua (韓振華) at a press conference. .

Trade volume has also grown by around 16% per year, he said.

The value of trade in the areas from January to July totaled NT $ 679.8 billion, up 38.5% from the same period last year.

“The value of trade last year and in 2019 was around NT $ 900 billion. If the trade value continues to grow at the current rate, it could potentially exceed NT $ 1 trillion, which would be an all-time high. Han said, adding that the performance is remarkable given that the COVID-19 pandemic has severely disrupted global supply chains, leading to labor and container shortages.

The business value was primarily generated by the airport’s free trade zone which houses electronic component manufacturers, the department said.

The airport’s free trade zone generated a trade value of NT $ 484.1 billion from January to July, as high demand for computer chips led to an overall increase in the prices of electronic components, he said. he declares.

The re-export of components used in the automotive industry and petrochemicals has also increased in free zones near seaports, with a trade value totaling NT $ 195.8 billion between January and July, according to department data.

New infrastructure would be built in the free zones in view of the new business opportunities created by changes in global supply chains, the department said.

Farglory FTZ, the airport free trade zone development contractor, is investing NT $ 5.6 billion to develop value-added logistics, cold chain and express delivery services in the region. zone, he said.

A 60 hectare plot near the south pier of Taipei Port would be used to develop applications involving the use of artificial intelligence and 5G technology, while a 4 hectare plot north of the port would be used for develop warehousing and airlift services, he added.

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