TAIWAN

Export Atlas in PDF

With a population of 23 million and a forecasted GDP of $804bn in 2025, Taiwan's economic system is characterised by a robust export-oriented model, prominently featuring advanced technology and a strong industrial base. In 2023, the gross domestic product (GDP) of Taiwan amounted to around 23.5 trillion New Taiwan dollars or €681.5 billion. Annual GDP growth dropped to 1.3 percent in 2023 but was forecasted to grow to 3.9 percent in 2024. 

As of 2022, projections for GDP growth in the near future have remained optimistic, with expectations of sustaining positive momentum. The medium-term economic outlook for Taiwan has been promising, supported by factors such as innovation, robust infrastructure, and strategic investments. These elements contribute to the country's resilience amid global uncertainties. 

Macroeconomic fundamentals have been reported as sound, reflecting prudent fiscal policies and a resilient financial sector. This underlines Taiwan's ability to navigate challenges effectively. The currency exchange rate is influenced by various factors, including trade dynamics and global economic conditions. The New Taiwan Dollar (TWD) is subject to these influences, with the central bank implementing a stable exchange rate policy to ensure competitiveness and economic stability.
 

Summary

BNP Paribas has had a presence in Taiwan since 1981, the largest French bank in the country, and one of the most significant foreign banks, with branches in Taipei, Taichung and Kaohsiung. These branches offer comprehensive local and cross-border cash management and international trade finance services to Taiwanese, Chinese and foreign corporations. Cash management and international trade finance services are part of a wider suite of services from corporate advisory, capital markets, and specialist financing through to wealth management, asset management and insurance offerings.

Currency

  • New Taiwan dollar (TWD).

Bank accounts

  • A profit-seeking enterprise that is incorporated in Taiwan or its head office is in Taiwan is considered to be a Taiwanese resident company, unless it is regarded as a resident in another country under a Taiwanese tax treaty.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

As of August 2023, 13 financial institutions had approximately 310,000 cash cards in business, while 32 institutions had issued 57.67 million credit cards, with a total of 36.83 million active cards. Visa and MasterCard-branded credit cards are the most widely issued. 

The Taiwanese government is investing heavily in promoting digital payments and has set a target of 90% of mobile phone users using mobile payments by 2025. Mobile payments totalled TWD 120.9 billion in the first seven months of 2020, a 156% increase year on year. LINE Pay, Apple Pay and JKoPay are the most popular mobile payment methods. This emphasis on mobile and electronic payments has seen a marked decline in the use of cheques by companies and consumers. The launch of internet-only banks (three banks were granted licences in 2019, LINE Bank, Next Bank and Rakuten Bank) is likely to further increase the adoption of digital payments.

Electronic banking services are available from most banks. There is no national electronic banking standard in Taiwan, so companies use banks’ proprietary services.

Online and mobile banking services are provided by Taiwan’s leading banks.

FISC, an electronic funds transfers system, operates a Mobile Banking Payment System linking telecoms companies with financial institutions. Mobile banking transactions increased 51% and 74% in value and volume terms in 2019. Internet banking transactions increased 14% and 74% in value and volume terms.

 

 

Short term investments

Interest payable on credit balances

  • Current accounts are non-interest bearing.

Demand deposits

  • Demand deposits denominated in TWD or major foreign currencies are available for terms up to one year.
  • Interest earned by non-residents on foreign currency accounts held at Offshore Banking Units is not taxed.

Time deposits

  • Time deposits are available in TWD or major foreign currencies with terms ranging from overnight to one year.
  • Time deposits are not permitted for investors from abroad.

Certificates of deposit

  • Domestic banks and the CBC issue certificates of deposit with terms ranging from one to 12 months.
  • Certificates of deposit can be issued paying fixed or variable interest.

Treasury (government) bills

  • The Taiwanese government issues Treasury bills (T-bills) via the CBC. The minimum investment is TWD 5 million.
  • T-bills are issued with terms ranging from 63 to 364 days.
  • The minimum denomination is TWD 5 million for initial auctions and TWD 1 million at buy-back auctions.

Commercial paper

  • Domestic commercial paper is issued by companies. Most paper is issued as short-term, unsecured promissory notes with terms ranging from one month to one year.

Money market funds

  • Domestic money market funds are available as short-term investment instruments.
  • Foreign investors are prohibited from investing over 30% of their funds in money market funds with terms of less than 12 months.

Repurchase agreements

  • Repurchase agreements with maturities ranging from overnight to one week are commonly available in Taiwan.

Banker's acceptances

  • Banker's acceptances are not widely used in Taiwan.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • Taiwan is a member of an Economic Cooperation Framework Agreement (ECFA) with China.
  • Taiwan currently has 7 free trade zones, six sea ports and one airport: i) Keelung Port FTZ, ii) Suao Port FTZ, iii) Taipei Port FTZ, iv) Taoyuan Air Cargo Park FTZ, v) Taichung Port FTZ, vi) Anping Port FTZ, vii) Kaohsiung Port FTZ.