Wed, May 27, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer

FOREIGN INVESTMENT

Minister to visit Vietnam

Minister of Economic Affairs John Deng (鄧振中) yesterday said he will visit Vietnam between August and the end of this year to discuss the renewal of an investment protection agreement. “The Taiwan-Vietnam investment protection agreement was signed in 1993 and it is necessary to renew the content of the agreement as soon as possible,” Deng told a media briefing. Deng said the Ministry of Economic Affairs sent a draft of renewal agreement to the Vietnamese government, pending Vietnam’s response. He said the anticipated bilateral-ministerial meeting with Vietnam is also expected to discuss the possibility of simplifying customs inspections.

AVIATION

Pact to boost passengers

A new cross-strait agreement aimed at opening Taiwan’s airports to Chinese transit travelers is expected to enhance Taiwanese airlines’ long-haul passenger load factor, with benefits limited to current routes for the time being, UBS Securities Asia Ltd said yesterday. UBS said the new agreement is expected to attract between 400,000 and 800,000 additional passengers a year, or between 10 and 20 percent of total Chinese visitors to Taiwan last year. After the new policy takes effect in the middle of this year, incremental traffic could translate into 1.6 percent and 2.5 percent additional revenue for China Airlines Ltd (CAL, 中華航空) and EVA Airways Corp (EVA, 長榮航空) next year, the brokerage said.

ELECTRONICS

Unimicron shares up 4.56%

Unimicron Technology Corp (欣興電子) shares surged 4.56 percent yesterday as investors said the Taoyuan-based printed circuit board (PCB) maker might have bottomed out last quarter. In the first quarter, Unimicron posted an operating loss of NT$733 million due to continual losses from its new plant for Intel Corp and lower utilization rates for all its product lines stemming from Apple Inc’s seasonality and weak PC demand. Unimicro said business for this quarter would improve because of the recovering utilization from high-density interconnect (HDI) PCB and flexible PCB. However, CIMB Securities said the company’s IC substrate, the main source of its losses, would not see much improvement this quarter and might continue to report an operating loss due to weak demand and production bottlenecks.

TELECOMS

Far EasTone sets app target

Far EasTone Telecommunications Co (遠傳電信) yesterday said it is targeting 1 million downloads of the company’s “friDay APP Assistant” app by the end of this year, which has been downloaded by 500,000 users since its launch in November last year. The company plans to open a “friDay APP Assistant” app store next month, hoping to provide 10,000 mobile games this year, Charlene Hung (洪小玲), executive vice president of Internet and commerce at Far EasTone, said on the sidelines of an event to highlight the company’s latest collaborations with more than 10 game publishers.

MACROECONOMICS

M2 outpaces M1B gauge

The nation’s M2 broad money supply gauge continued to outpace the M1B narrow indicator last month, as people channeled cash into time deposits, the central bank said on Monday. However, the two gauges’ growths last month were slower than the previous month. The narrow gauge, which refers to cash and cash equivalents, increased 5.85 percent year-on-year last month and lagged behind the M2’s 6.53 percent gain, the central bank said.

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