The Executive Yuan established the National Development Fund (NDF) to encourage industrial innovation, economic transformation and national development. The NDF partners with the government in supporting industrial policies, assisting with project finance, and ensuring sound industrial development.
Government Investment Participation
The NDF’s Mission:
- Invest in businesses or projects related to innovation, high-tech development, energy regeneration, green energy, and technological upgrading, as well as those conducive to effectiveness or structural adjustment.
- Finance facilitation projects related to sustainable development, pollution prevention, energy conservation, and greenhouse effect reduction, as well as those conducive to effectiveness or structural adjustment.
- Finance projects or provide technical cooperation grants for national competent authorities.
- Finance projects related to economic, social, cultural and agricultural technological development, as well as those conducive to technology inflow, R&D, private label branding, training/education, and structural adjustment.
- Provide financial support in other areas as approved by the Executive Yuan.
Investment Application and Review Process
The applicator issues a business plan with an application letter to the NDF, where it first undergoes an evaluation by external/internal experts to determine whether it matches the principles for the Fund’s utilization. If the evaluation finds the plan qualified, the application is afterwards submitted to the Investment Review Committee and the Management Committee for approval in sequence. After the project passes the review, the NDF is going to join the investment.
Investment in SMEs
In order to promote the development of domestic SMEs, the NDF established the “Action Plan for Accelerated Investment by SMEs,” which amounts to NT$10 billion direct investment. This project is implemented by the Small and Medium Enterprise Administration of the Ministry of Economic Affairs (MOEA).
Investment principles
The government’s stake in such investments cannot exceed 49% in terms of total paid-in capital into an invested enterprise. Meanwhile, the NDF should participate in the investment jointly with a professional management company at a stake ratio no lower than 1:1 (this ratio is 1 to 0.2 in cases with the SME Development Company).
Investment Application and Review Process
The professional management company evaluates the investment plan, and send the analysis report to the Investment Commission of MOEA for further discussion. If the application passes the review, the SME Administration will instruct NDF’s Action Plan for Accelerated Investment by SMEs Trust Account to appropriate funds for the investment.
Investment Target
- Focus on domestic SMEs
- Not invest in listed companies
Source: National Development Fund, Executive Yuan
Other
The Executive Yuan has also set up an agricultural science & technology venture capital investment plan to support the development of domestic agricultural enterprises. For further details, please contact Council of Agriculture, Executive Yuan.
