September 6, 2006
In order to promote foreign investment in Taiwan, the Ministry of Economic Affairs (
MOEA) formed the
MOEA FDI Task Force, which aims to integrate cross-agency resources on foreign investment and create an effective mechanism to facilitate foreign investment in Taiwan. The Task Force also provides a "total solution" service network for foreign investors covering all stages of investment, from pre- to post-investment. This service is expected to effectively expand FDI in Taiwan.
According to statistics from the
MOEA Investment Commission, from Jan. to Aug 31, 2006, approved foreign direct investment (FDI) totaled
NTD 8.541 billion – an increase of 369.56% over 2005. Not accounting for Philips' purchase of shares in Taiwan Semiconductor, which amounted to
USD 3.765 billion, FDI in 2006 increased by 207.65%, or a total of
USD 47.76 billion. These figures clearly reflect the results achieved by the
MOEA Task Force. FDI in Taiwan in 2006 is expected reach a record high, and FDI from Jan. to Aug. 2006 has already surpassed
USD 4.5 billion figure projected by the Economist Intelligence Unit.
According to the 2005 World Investment Report by the United Nations Conference on Trade and Development, cross-border mergers and acquisitions (M&A) and the service industries have already become major conduits for FDI worldwide. In order to effectively expand FDI through M&A, the
MOEA has engaged in research on cross-border service industry M&A networks and organizations, and has established a communications channels among accountants, lawyers, investment banks, and assets management companies involved in cross-border M&A. The
MOEA is also providing industry information and data suited for foreign investors in Taiwan (currently covering the financial services,
IT/media services and top manufacturing industries) and the necessary administrative assistance.
The service industries account for 73.56% of Taiwan's gross national product, but comprise only 64.65% of the economy. The service industries employ 58.27% of Taiwan's workforce – a figure that points to ample room for investment in Taiwan's service industries. The
MOEA has formed a cross-agency contact window dedicated to FDI in the service industries, which will track industry developments and assist service industry competent authorities in attracting more investment. In addition, the
MOEA is also conducting research on cross-border M&A trends, which is being directed in particular at strategic service industries such as the financial services industry. This research will help screen target foreign investors, with
MOEA representative offices abroad assisting by establishing contacts with prospective investors, with the ultimate goal of expanding FDI in Taiwan.
(
DOIS)
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