January's 93% rise in FDI shows affirmation of Taiwan's investment environment

March 6, 2006

The MOEA established the MOEA FDI Task Force in October 2005 in order to devise effective mechanisms for the promotion of overseas Chinese and foreign investment in Taiwan. Now, after just five months in operation, the initial results of the task force's efforts are already being reflected in the government's FDI statistics.

Statistics released by the MOEA's Investment Commission and Department of Commerce show that foreign direct investment in Taiwan rose 93% on the year to a total of USD 282 million in January. In addition to this investment, Philips Taiwan also transferred its stock holdings in Taiwan Semiconductor Manufacturing Co. to its mother company in the Netherlands for USD 3.747 billion in January, bringing the total value of foreign investment in Taiwan in January to USD 4.029 billion. This massive volume of foreign investment at the beginning of the year serves as empirical evidence of the confidence foreign investors place in Taiwan's investment environment.

While Taiwan is already off to a spectacular start this year, there are many other investment opportunities waiting. For one, the interest of foreign investors in mergers and acquisitions in Taiwan's finance and insurance, telecommunications and media, TFT-LCD panel and semiconductor sectors has been growing steadily, and this year should see increased activity in this regard. Investment opportunities are also on the rise due to Taiwan's high-speed rail and mass rapid transit projects and bustling commercial real estate sector. These areas offer billions of US dollars in investment prospects. With so many opportunities waiting, it is highly probable that total foreign direct investment in Taiwan this year will hit a new record high by surpassing the USD 7.6 billion value posted in 2000.

The FDI Task Force held its third meeting recently and resolved to pursue the following measures in order to further boost foreign direct investment in Taiwan:

1. In view of the increasing volume of foreign investment in Taiwan's financial services sector, the MOEA has instructed the Investment and Trade Office of the Taipei Economic and Cultural Representatives Office in the United States and the Hong Kong Branch Office of Taiwan's Far East Trade Service to step up their efforts aimed at bringing financial investors to Taiwan.

2. The MOEA together with the Public Construction Commission and the Science-based Industrial Park Administration of the National Science Council have set up inter-ministerial channels to improve government coordination related to the promotion of foreign investment in Taiwan.

3. The MOEA has also called on the Bureau of Foreign Trade to assist in identifying enterprises participating in local and overseas trade exhibitions that are likely to be interested in pursuing further investment talks with the task force.

4. The task force will present an annual report on its investment promotion success stories at the MOEA-sponsored Taiwan Business Alliance Conference in mid October.

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