Source: Taiwantrade | Updated: 04 March 2015
In 2014, despite a number of events that have added to the risks present in the emerging markets, such as the conflict in Ukraine and the Ebola outbreak in West Africa, major international institutions are still optimistic about the economic growth in those markets compared to the rest of the world. In October 2014, the International Monetary Fund (IMF) has forecast the 2015 economic growth rate of the world’s emerging markets at 5.0%, which was higher than the average 3.8% worldwide and 2.3% of the advanced economies. As regional differences do exist among the emerging markets, Taiwan as an export oriented economy should develop the corresponding regional strategies in order to grasp opportunities and avoid the potential risks.
Together, the emerging markets formed Taiwan's second largest export market. In 2014, the emerging markets accounted for 27.7 % of Taiwan’s annual total exports, second only to Taiwan’s largest export destination, the combined market of mainland China and Hong Kong. Among all of the emerging markets, 19% of Taiwan’s annual exports went to the 10 member countries of the ASEAN. The fastest growing and largest volume exports from Taiwan to the emerging markets are integrated circuits (HS8542) and solar cells. Laptops and the related components are also among the strong performers. In turn, demands for these items have served to propel Taiwan's trillion dollar semiconductor industry. Among the emerging economies, the major markets for Taiwan’s integrated circuits were Singapore, Malaysia, and the Philippines. In addition, the export growth of Taiwan's passenger cars to the Middle East has continued its steady momentum.
Spurred on by the effect of demographic dividend, the rapid economic development and GDP growths in the emerging markets have attracted the attention and investment of many enterprises. Given the markets can vary in their economic traits and consumer characteristics, it would be ideal for enterprises to devise localized strategies. Take Indonesia for example, enterprises can develop marketing strategies that center around the economy’s new market reforms, its young population, and its rising middle class.