Foreign companies to invest NT$50 billion in Taiwan (update)
2011/10/19 18:08:44
Taipei, Oct. 19 (CNA) Thirty-two foreign companies signed letters of intent with the Ministry of Economic Affairs Wednesday to invest in Taiwan or expand their operations in the country.
The companies are involved in the areas of manufacturing, logistics, research and development and technology transfer.
They have agreed to invest a combined NT$50 billion (US$1.66 billion) in Taiwan over the next three years, a move that is expected to create 8,246 jobs.
"With the higher involvement of the logistics and R&D sectors, foreign companies are showing confidence in Taiwan's research ability, domestic market demand and increased buying power," Economics Minister Shih Yen-shiang said at the signing ceremony.
"This year we have some old friends, such as U.S.-based computer maker Dell Inc., while we have some new partners from around the world," he said.
Among the 32 foreign companies, nine of them are from the United States, seven from Japan, nine from Europe, three from the other parts of Asia, and one each from Canada, Argentina, Australia, and the Cayman Islands.
Shih said the biggest investment made by a single company is expected to approach NT$10 billion, but he declined to name the company.
In addition, Shih said, most of these companies will invest more in Taiwan, but at the moment, they are reluctant to disclose their investment plans.
President Ma Ying-jeou said at the ceremony that the Economic Cooperation Framework Agreement (ECFA) signed last year with China has "redefined Taiwan's role in the global economy" and has improved Taiwan's investment environment.
Ma said Taiwan's future economic development will be driven not just by exports but also by investment growth, as the country is ideally located geographically and has a well-built infrastructure and an educated workforce.
"It's the best time to invest in Taiwan. Don't be hesitant," the president urged the business representatives at the ceremony.
Citing data from a Japanese research institute, Ma said that if Japanese firms enter the Chinese market on their own, their chances of success will be only 68 percent.
However, the odds will increase to 78 percent if Japanese corporations enter the market with Taiwanese partners, which is why Japan and Taiwan signed an investment protection deal last month, Ma said. (By Jeffrey Wu)
Source: http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=&ID=201110190032
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