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In this page: FDI in Figures | Why You Should Choose to Invest in Taiwan | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

Taiwan is an important destination for Foreign Direct Investment (FDI). The island enjoys strong growth sustained by the dynamism of the entire region, a population with high purchasing power and economy with high technological focus. However, in the recent years, its attractiveness has been steadily declining. Between 2011 and 2013, the country experienced negative FDI flux of around $35b, especially to China. FDI flows remain among the lowest in the region. Speculative activities, rising property prices, bureaucratic constraints and a rigid judicial framework are all impediments to investment. FDI flux have been negatively affected by the global economic crisis and later by the euro zone crisis and the difficulties of the U.S. economy. However the Economic Cooperation Framework Agreement (ECFA) signed with mainland China in 2010 has improved Taiwan's investment climate.


Country Comparison For the Protection of Investors

  Taiwan East Asia & Pacific United States Germany
Index of Transaction Transparency* 9.0 5.0 7.0 5.0
Index of Manager’s Responsibility** 5.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 6.3 5.4 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 1,9573,2073,688
FDI Stock (million USD) 55,10059,76063,448
Performance Index*, Ranking on 181 Economies 151--
Number of Greenfield Investments*** 1067967
FDI Inwards (in % of GFCF****) -
FDI Stock (in % of GDP) 12.212.413.0

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in Taiwan

Strong Points
The country's strong points are:
- A considerable industrial and logistical fabric;
- An abundance of a skilled labor force;
- Strong R&D capabilities;
- An emerging capital market;
- Efficient logistics operations;
- A strategic geographical location, the country is an entryway to China and the ASEAN markets.
Weak Points
The country's weak points are:
- The lack of a direct communication path with China;
- A limited domestic market;
- A certain weakness in the protection of intellectual property.
Government Measures to Motivate or Restrict FDI
New regulations provide preferential tax incentives to foreign professionals employed in Taiwan, and are aimed at improving the overall environment for recruiting and attracting professionals from other countries. The regulations, which address a general shortage of professional talent, are expected to benefit up to 3,000 foreign professionals in Taiwan.
More information can be obtained on the website of Invest in Taiwan (investment guide).
Since 2009 Taiwan has eased restrictions on investments from mainland China. Currently a proposal has been made to establish "free economic demonstration zones" (FEDZ). The goal of building up these zones is to position Taiwan as an Asia-Pacific Free Trade Center.
Bilateral Investment Conventions Signed By Taiwan
With Argentina, Belize, Burkina Faso, China, Costa Rica, Dominica, El Salvador, Gambia, Guatemala, Honduras, India, Indonesia, Japan,  Liberia, Malaysia, Macedonia, the Marshall Islands, Nicaragua, Nigeria, Panama, Paraguay, the Philippines, Saudi Arabia, Senegal, Singapore, Swaziland, Thailand, Malawi, the United States and Vietnam.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Taiwan no longer has a list of permitted investments, but maintains a "negative" list of industries closed to foreign investment to maintain security and environmental protection. Liberalization has reduced that list to less than one percent of manufacturing categories and less than five percent of service industries. More information on US department website.
Acquisition of Holdings
A majority holding interest in the capital of a Taiwanese company is legal. However the foreign ownership limit on wireless and fixed line telecommunications firms is 60%, including a direct foreign investment limit of 49%. There is also a 20% limit on foreign direct investment in cable television broadcast services.
Competent Organization For the Declaration
Investment Commission MOEA

Learn more about Foreign Investment in Taiwan on, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Invest in Taiwan (investment guide)
Tenders, Projects and Public Procurement
Global Tenders, Governmental tenders in Taiwan
Public construction Commission of Taiwan, Governmental procurements in Taiwan
Tenders Info, Tenders in Taiwan Province of China
Asian Development Bank, Procurement Plans in Asia
DgMarket, Tenders Worldwide
Other Useful Resources

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Learn more about Investing in Taiwan on, the Directory for International Trade Service Providers.

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Last Updates: December 2014