Taiwan

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Investing in Taiwan

FDI in figures | Why you should choose to invest in Taiwan | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Between 2005 and 2007, Taiwan showed significant growth in FDI flow. In terms of attracting Foreign Direct Investments, the island is in 6th place amongst the East Asian, South Asian and Southeast Asian economies, behind China, Hong-Kong, Singapore, India and Thailand. However, because of the international financial crisis, FDI flow slowed down considerably in 2008, and 2009.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	1,625	7,424	8,161
FDI stock (millions USD)	43,175	50,211	48,640
Performance Index*, ranking on 141 economies	132	119	111
Potential Index**, ranking on 141 economies	20	17	-
Number of Greenfield investments***	68	66	61
FDI inwards (in % of GFCF****)	2.1	9.6	10.1
FDI stock (in % of GDP)	12.1	13.7	12.7

Source:

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.

Why you should choose to invest in Taiwan

Strong points: The country's strong points are:
- A consideralble 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.
Government measures to motivate or restrict FDI: New taxation regulations for foreign professionals in Taiwan came into effect at the beginning of 2008, as according to an announcement made by the Ministry of Finance (MOF).

The 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.
Bilateral investment conventions signed by Taiwan: With Argentina, Belize, Burkina Faso, Costa Rica, Dominica, El Salvador, Guatemala, Honduras, India, Indonesia, Liberia, Malaysia, Macedonia, the Marshall Islands, Nicaragua, Nigeria, Panama, Paraguay, the Philippines, Saudi Arabia, Senegal, Singapore, Swaziland, Thailand, Malawi, and Vietnam.

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.
Competent organization for the declaration: Investment Commission MOEA

Finding assistance for further information

Investment aid agency: Invest in Taiwan.
Other useful resources: MOEA

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