Introduction
The New Southbound Policy of Taiwan (often referred to as the NSP) is a political effort put out by Taiwan in 2016 with the goal of fostering closer connections between Taiwan and 18 nations in Southeast Asia, South Asia, and Australasia (Hsin-Huang & Yang, 2022). The goal of the program is to expand Taiwan's diplomatic and economic ties beyond its current set of allies. All countries targeted by the NSP, except for Laos, have sea economic areas, which are a crucial part of economic development and national sovereignty or independence. In addition, Taiwan is geographically surrounded by the sea; hence, its traditional economy is also based on its waters (Ocean Affairs Council, 2021). Meanwhile, many conflicts involve sea borders, such as the controversial map of China which covers all the Vietnamese and Philippines seas. Apparently, keeping the sea prosperous is a way to keep the country's sovereignty and autonomy, which can be achieved through blue economy cooperation. Blue economy cooperation can tackle regional mutual challenges through more job creation, better sustainable resource sharing and exploitation, food security, marine education and science innovation knowledge exchange, disaster resilience, and preparedness (URIC, 2022). In addition, the development of the blue economy will be able to harmonize the four pillars of the NSP, namely (1) promoting economic cooperation, (2) conducting talent exchanges, (3) sharing resources, and (4) establishing regional connections (Executive Yuan, 2019). Therefore, this paper aims to shed light on the role of blue economy cooperation in the NSP of Taiwan and the implications for implementing regional blue cooperation.
Definition and the importance of the blue economy in Taiwan
Some academic definitions of the blue economy should be clarified. According to the World Bank (2017), the blue economy refers to using maritime resources for economic growth, improved lifestyles, and job creation while safeguarding the marine environment. According to the European Commission, it includes "all economic activity involving oceans, seas, and coastlines (United Nations, 2019). It includes a huge variety of interconnected existing and growing sectors. The Commonwealth of Nations defines the blue economy as "an emerging concept which encourages better stewardship of our ocean or 'blue' resources”. For Conservation International, the “blue economy also includes economic benefits that may not be marketed, such as carbon storage, coastal protection, cultural values, and biodiversity." (The Commonwealth, n.d.). The United Nations (2019) also stated that the blue economy will support the United Nations Sustainable Development Goals, specifically goal 14, which is "Life Below Water".
The blue economy in Taiwan contributes significantly to its GDP. It has also accounted for nearly 80 % of the share gross value of the marine economic value in Taiwan (see Figure 1). Specifically, statistics have shown that Taiwan has 4 out of 30 world-leading shipping companies, such as Evergreen Marine Corporation, Yang Ming Marine Transport Corporation, Wan Hai Lines, and TS Lines (Alphaliner, 2023). This indicates the potential for further cooperation with Taiwan in marine transportation and supporting services as well as in technology transfer, marine environment conservation, and marine economic workforce training and education.
Figure 1. Share of gross output value of marine industries in Taiwan in 2019Retrieved from Ocean Affairs Council data (2021)
Implications
Implementing the blue economy cooperation in the orientation of the New Southbound Policy can include fostering collaboration in the maritime and marine-related fields between Taiwan and the 18 partner countries. Taiwan can collaborate with the 18 partner countries' governments to form a regional framework for the blue economy similar to the EU Marine Strategy Framework Directive. This can be customized for the region, and applicable to different partner countries' contexts. Some first steps can be considered to focus on potential key partner countries such as Vietnam and Australia before implementing it in the rest of the partner countries.
In terms of the Taiwan and Vietnam cooperation relationship, Taiwan has become one of the key economic partners of Vietnam on foreign direct investment, tourism, and workforce exchange cooperation (Taiwan Economic and Culture Office In Vietnam, 2022). According to the Vietnam Ministry of Planning and Investment, Taiwan ranked fourth in foreign investment categorized by counterpart accumulating by June 2023. In addition, trade barriers with Vietnam have been removed thanks to free trade agreements. These figures have pointed out that Vietnam can become one of the key partners in implementing the first steps of the New Southbound Policy in economic investment, tourism, and talent workforce exchange. Taiwan can increase investment and trade promotion by encouraging Taiwanese companies to invest in the blue economy sectors of Vietnam and facilitate bilateral trade in marine products and services. In addition, Taiwan can engage in joint research projects with Vietnam to address shared challenges and explore new opportunities in the blue economy. Taiwan can also cooperate with Vietnam to promote marine conservation and environmental protection measures to ensure the sustainability of marine resources and ecosystems. Finally, tourism, which is known as the “smokeless industry”, has the potential to be developed. For instance, statistics showed that 926,744 Taiwanese visited Vietnam and 405,396 Vietnamese visited Taiwan while mutual visits reached more than 130 million in 2019 (Taiwan Economic and Culture Office In Vietnam, 2022). Taiwan and Vietnam can develop sustainable and responsible tourism initiatives that highlight the unique marine biodiversity and mutual cultural heritage of both nations while promoting sustainable tourism.
The implementation of the New Southbound Policy with a focus on Australia has the potential to enhance sustainable marine resource conservation and economic growth. Broadly speaking, it can also offer stability for the Indo-Pacific region in the long run. Although Taiwan and Australia have not established an official diplomatic relationship (Australian Government Department of Foreign Affairs and Trade, n.d.), economic cooperation continues to develop since both are members of the APEC, the World Trade Organization, the Asian Development Bank, and a number of fisheries conventions (Australian Government Department of Foreign Affairs and Trade, n.d.). The mutual services and trade between Taiwan and Australia are valued at US$811 million. Taiwan is one of the largest tourism and education markets for Australia as well as working and holiday workforce even during the COVID-19 period (Australian Government Department of Foreign Affairs and Trade, n.d). As both nations are members of some fisheries conventions, there is a bright potential to enhance cooperation in this field. Specifically, Taiwan can collaborate and harmonize the fisheries regulation with practical applications based on its long-established fisheries industry. Taiwan can also organize the exchange of knowledge in the fisheries technology field for more efficient fisheries management by offering scholarships for short and long-term intensive courses for professionals, practitioners, and students in the fisheries industry. In addition, Taiwan and Australia can do the technology transfer by sharing the expertise and technology in marine-related industries to enhance their capabilities in sustainable resource management and utilization.
Conclusion
In conclusion, the New Southbound Policy's take on blue economy cooperation has the potential to promote sustainable development, environmental stewardship, and global cooperation between Taiwan and its 18 partner nations. This strategy intends to take advantage of the enormous potential of our oceans while protecting the long-term health of marine ecosystems by giving priority to responsible practices in industries such as fisheries, aquaculture, renewable energy, and tourism. The member nations may work together to address common issues including resource management, climate change, and maritime security through information exchange, technology transfer, and collaborative research projects. The New Southbound Policy provides a dynamic framework for establishing long-lasting alliances, fostering cross-cultural dialogue, and furthering the shared interests of countries in the Indo-Pacific region as the blue economy develops into a cornerstone of regional prosperity. Nations can usher in a new age of sustainable prosperity while protecting the essential resources that our linked blue world provides by adopting this comprehensive strategy. Once again, it is essential to establish a mutual framework toward the blue economy in the region by initiating the first step in enhancing the comprehensive cooperation in the blue economy with potential key partners such as Vietnam and Australia before launching the whole implementation with the rest of the partners. This initial move heading to the South can enhance the comprehensive and evolving ideas of the New Southbound Policy and cooperation in the blue economy can continue to grab new opportunities and tackle emerging challenges.
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About the Author
Huynh Ngoc Thanh Tam is currently a master's student in Lund University, Sweden. After completing her bachelor’s in international business at Can Tho University in 2022, she continued her study in International Development and Management at Lund University, Sweden. Her research interest is women empowerment and socio-economic development with a geographic focus in Asia.
Tam can be reached at [email protected].