As one of the newly industrialized countries, Taiwan is moving rapidly toward modernization. Accompanying this high economic growth rate are serious traffic problems. Unfortunately, traditional TSM strategies do not help a lot, and a more advanced traffic management system, which is referred to as IVHS, is thus necessitated. A general description about recent progress for IVHS development in Taiwan is presented. Seven relevant research areas and/or significant on-going transportation projects are included. Based on the understanding of our research capability, four intercorrelated IVHS projects are suggested in the future research directions.