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Direct investment sees solid growth

The Council of Economic Planning and Development said yesterday that the nation's inward foreign direct investment (FDI) continues to see solid growth after Taiwan was ranked sixth among Asian countries last year.

The nation's inward FDI amounted to US$14 billion in the first 11 months of this year, breaking the record high of US$13.97 billion in the whole of last year, the council said citing statistics from the Ministry of Economic Affairs.

Despite recent volatility on the stock market, the nation's economic fundamentals remain sound, the council said, with exports in the first 11 months growing 26.1 percent per annum to NT$1.1 trillion (US$33.8 billion) and imports seeing 20.5 percent annual growth to hit NT$865.5 billion.

Taiwan ranked behind only China, Hong Kong, Singapore, India and Thailand in the region in terms of inward FDI, the UN Conference on Trade and Development's World Investment Report 2007, said in mid-October.

Inward FDI last year increased 356 percent over the previous year's US$1.62 billion and 291 percent over 2004's US$1.89 billion total.

Outward FDI was US$7.39 billion last year, ranking the nation fifth in the region behind Hong Kong, China, India and Singapore.

That marked an increase of 22.74 percent over the US$6.02 billion total the previous year and a 3.56 percent increase from US$7.14 billion in 2004.

Last year total FDI inflows to South Asia, East Asia and Southeast Asia hit US$200 billion, an increase of 19 percent over 2005 and a record high.

The council said the nation may move up the world rankings again this year after moving up to the 31st place in last year's FDI world rankings from 62nd the previous year.

The council has set an economic growth target of 4.8 percent next year, an unemployment rate target of less than 3.8 percent and an inflation rate target of less than 2 percent.
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