2022 is a breakthrough year for Lithuania and Taiwan: increased trade and the island’s long-term ambitions next year
Among other things, an increasing number of Lithuanian companies are expanding their exports to this Far Eastern market, both imports and exports have been growing extremely rapidly in recent years, even though there is also a mutual trade deficit.
In turn Taiwanese missions In Lithuania, the leader expects the further growth of bilateral trade and assures that Lithuania and 2023. will remain Taiwan’s primary priority in the region.
Enhanced cooperation
Relations between Lithuania and Taiwan have become one of the most relevant topics in the country’s public space after the 2021 In autumn, a Taiwanese representative office was opened in Vilnius – the first in the world to be named after the island, not its capital, Taipei. Since then, there has been talk of strengthening political and trade ties, despite warnings from Beijing that the “One China Policy” was being violated.
According to the Ministry of Economy and Innovation (EIM), the first year of closer economic cooperation between Lithuania and Taiwan was 2021, when not only the representative office was opened, but also the legal basis for bilateral partnership was created – both sides agreed to cooperate in the field of goods and services in a memorandum.
The Lithuanian trade representative office in Taipei started its activities in 2022. at the beginning of November. It will seek to attract investments to Lithuania, promote the export of Lithuanian goods and services, scientific cooperation and inbound tourism. In addition, from 2023 the Taiwan Chamber of Commerce will start its activities, uniting businesses that create relations with Taiwan.
In November, the Taiwanese announced the first of the 200 billion announced at the beginning of the year. The investment of an investment fund worth US dollars – 3.5 million. euros was attracted by the Lithuanian laser manufacturer Litilit.
Along with this news, the Taiwanese representative office also announced the launch of the Taiwan Industrial Technology Research Institute and the group of Lithuanian high-tech manufacturing companies “Teltonics IoT Group” partnership in the development of semiconductor production in Lithuania.
Also, soon Lithuanian business expects to receive news about allocated funds from the 1 bln. US-sized loan fund for joint business projects of Lithuania and Taiwan.
“With the acceleration of mutual cooperation, higher trade and investment results are expected next year,” commented EIM in Eltai.
“Looking back on these years, I think they had a bumpy start, but because the direction was already set, they knew that our relationship was growing stronger despite China’s pressure.” If we are successful, we will be an example for all democracies,” Eric Huang, head of the Taiwanese representation in Lithuania, told Elta.
E. Huang himself names the establishment of a 200 mln. and 1 million US dollar value fund.
“We will use both funds to attract the attention of the business community so that they are interested in investment opportunities in Lithuania and the common European market,” said E. Huang.
He said that other Lithuanian companies to be financed with the funds of these funds will be announced already in January.
“We will announce more good news: about cooperation in the development of a project financed by the Semiconductor Fund and more loans,” said the representative of Taiwan in Lithuania.
Imports and exports grew, but Taiwan continued to benefit more from warming relations
According to the latest data of the Statistics Department, trade between Lithuania and Taiwan increased last year – in 2022. January-October, compared to the same period in 2021. period, Lithuanian export to Taiwan increased by 26.5 percent. (up to 23.3 million euros) and import – 69 percent. (121.9 million euros).
The total volume of trade increased by 60 percent this year, the turnover of goods between the two countries amounted to 145.2 million. euros.
According to economist Aleksandrs Izgorodins, the growth of trade between Lithuania and Taiwan was rapid this year, the export breakthrough – the volume of mineral fuel, electronics, various food products, metals, and chemical products transported to the island from Lithuania grew.
“The diversified growth of exports to Taiwan clearly shows that political efforts to strengthen Lithuanian-Taiwanese trade are bearing fruit: Lithuanian exporters are starting to take advantage of the opportunities that have opened up in Taiwan,” A. Izgorodins told Elta, predicting a further rise in exports.
“I am sure that in 2023 Lithuania’s export to Taiwan will continue to grow, (…) as more and more companies will see opportunities in Taiwan, more and more companies will understand internal trade rules and procedures”, A. Izgorodinas thought.
However, the expert notes that the volume of Lithuanian imports from Taiwan exceeds exports to Taiwan, and the trade deficit has increased over the year. According to the calculation of the Department of Statistics, it rose from 53.7 million per year. up to 98.6 million euros, comparing January-October data.
“These numbers show that Taiwan uses export opportunities to Lithuania faster than Lithuania exports to Taiwan”, noted A. Izgorodinas.
“I think that when it comes to Lithuanian-Taiwanese economic relations in 2023, one of the main goals should be the search for greater foreign trade with Taiwan, and this requires faster development of Lithuanian exports to Taiwan,” he said.
According to EIM, Taiwan has the greatest technological and potential, so it is important to focus on high-tech cooperation first.
“Taiwan needs to be seen as supplying some of the high-tech components that we buy from the ministry,” he says.
Trade in food products is expanding
in 2023 an increase in the export of food products to Taiwan is expected – November 7. export permits for milk, fish and egg products were approved.
According to the State Food and Veterinary Administration, one egg product, 10 fisheries and 12 dairy companies are already able to export to Taiwan, and the final stages of negotiations are currently underway to approve the export of beef and beef products.
According to the service, the most exported food products to this Far Eastern island are Lithuanian dairy products, the export volume of which increased from 186 tons in 2021. up to 443 tons last year.
At a time Ministry of Agriculture (ŽűM) it is observed that in 2022 the export of agricultural and food products doubled during the year (I-III quarters) from 1.35 million up to 2.69 million euros (98.1%).
The ministry expects further growth in trade in the new year as well. To ensure this, the Ministry of Agriculture and Forestry will sign a memorandum on cooperation in the field of agriculture with Taiwan and approve an action plan for exports to Taiwan.
“Since the permits for the export of eggs, milk and fish to Taiwan were obtained only at the end of the year, we will see the results of the export of these products only next year, but we have no doubt that trade in agricultural and food products will continue to grow. Companies were very interested and were waiting for export permits for these products”, commented ŽŪM to Eltai.
E. Huang: Lithuania will remain Taiwan’s priority
Taiwanese investments, however, are intended not only for companies in Lithuania, but also in other Central and Eastern European countries, primarily the Czech Republic and Slovakia. According to E. Huang, Lithuania next year
will remain Taiwan’s priority in the region, where the island’s government wants to attract Taiwanese investors.
“We want to increase investments in Europe, the main focus is on Eastern Europe. Lithuania is a priority of priorities. Thus, taking advantage of the warmed-up mutual relations with Lithuania, we want to attract the attention of our companies to the entire region of Central and Eastern Europe. Lithuania’s role in this process is fundamental”, said E. Huang.
According to him, Taiwan hopes to turn Lithuania into the center of their investments in the entire region.
“We will not limit ourselves to activities in Lithuania, because then the investments will be limited and will not be as strategically useful as in the region. Our goal is very clear – to turn Lithuania into a starting point, a center. This is our strategy, our mission”, said the representative of Taiwan in Lithuania.
According to E. Huang, Taiwanese investors pay the most attention to Lithuania’s high-tech industry, primarily laser and biotechnology companies, as well as the renewable energy and pharmaceutical sectors. .
“We will supply you with what you need and we will buy from Lithuania products that are popular in the markets of Taiwan. We don’t want to create an unsustainable environment. Taiwan and Lithuania are both mature democracies, we want long-term, friendly relations. We are looking far ahead, but we are already seeing short-term increases in trade,” said E. Huang.
In turn, EIM hopes that in 2023 Lithuanian business in Taiwan will increase. According to the Ministry, Lithuanian companies should make the most of the cooperation opportunities with Taiwan in the field of science and technology.
“Together, it would be possible to create products that would be competitive in and sold on global markets,” says EIM.
“Lithuanian knowledge in Taiwan is great, so we hope that in 2023 more and more companies will enter the Taiwanese market, but in this culture, as in other cultures in the Southeast Asian region, building trust is very important, so market entry may take time,” the ministry predicts.
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