Overseas Taiwanese companies invested NT$41.9 billion (US$1.42 billion) in their home market as of the end of last month, accounting for 83.8 percent of the government’s target, the Ministry of Economic Affairs said yesterday.
About 61 percent of the amount was invested by overseas Taiwanese manufacturing firms, led by the textile and machinery equipment sectors, bringing their total investment to NT$25.7 billion in the first eight months of the year, the ministry said in a statement.
There were also other projects invested by overseas Taiwanese-funded companies in the services sector, with total investment standing at NT$5.8 billion during the period, the ministry said.
“An increasing number of overseas Taiwanese companies have expressed an interest in investing back in Taiwan because of the fast-changing Chinese investment environment and in view of more business opportunities following the implementation of the Economic Cooperation Framework Agreement [ECFA] with China,” the ministry said in the statement.
The investment environment in China is rapidly deteriorating because the rising cost of labor, raw material and land is squeezing profits, the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA, 電電公會) said in its annual survey of China-based Taiwanese firms last month.
Moreover, the persistent eurozone debt problem has also placed additional pressure on companies that export electronics products to that market, according to TEEMA.
Against this backdrop, the ministry said yesterday it has invited about 400 companies with operations abroad to attend an investment summit on Friday at the Taipei International Convention Center, hoping the one-day summit will attract more private investment to help boost the nation’s economy.
It hopes to show overseas Taiwanese businesspeople how to take advantage of the nation’s research and development potential, the ministry said.
The ministry said it forecasts that more overseas Taiwanese businesspeople will return and invest at home, setting a target of NT$50 billion for this year.
Last year, overseas Taiwanese firms invested NT$46.9 billion in Taiwan, up 15 percent from the previous year, according to the ministry’s data.
Private investment is forecast to fall 1.03 percent this year from last year, the Directorate-General of Budget, Accounting and Statistics said on Aug. 17, when it revised downward its forecast for GDP growth this year to 1.66 percent from its previous estimate of 2.08 percent.