Investment Opportunities in Taiwan

Overview by Globlatrade.net:

Protection of Foreign Investment

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.
International Controversies Registered By UNCTAD: With EU on recordable compact discs.
Member of the Multilateral Investment Guarantee Agency: No.

Country Comparison For the Protection of Investors

	Taiwan	East Asia & Pacific	United States	Germany
Index of Transaction Transparency*	7.0	5.2	7.0	5.0
Index of Manager’s Responsibility**	4.0	4.5	9.0	5.0
Index of Shareholders’ Power***	5.0	6.3	9.0	5.0
Index of Investor Protection****	5.3	5.3	8.3	5.0

Source: Doing Business

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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

Office Real Estate and Land Ownership

Possible Temporary Solutions: Information available on Invest in Taiwan (investment guide).
The Possibility of Buying Land and Industrial and Commercial Buildings: Information available on Invest in Taiwan (investment guide).
Risk of Expropriation: No foreign-invested firm has ever been nationalized or expropriated in Taiwan. Under Taiwan law no venture with 45% or more foreign investment can be nationalized for a period of 20 years after the venture is established. Expropriation can be justified only for national defense needs and "reasonable" compensation must be given.

Investment Aid

Forms of Aid: "Industrial Technology Development Program"
Privileged Domains: Manufacturing, IT, electronics.
Privileged Geographical Zones: The first free trade/free port zone began operation at Keelung, Taiwan's northern port, in November 2004. Another four have been
established in 2005. These four are located at Taoyuan International Airport and the international harbors in Kaohsiung, Taichung, and Taipei. Taiwan authorities have relaxed restrictions on movement of merchandise, capital and personnel into and out of such zones.
Taiwan has also over 70 industry clusters devoted to manufacturing products like Hsin Chu, Tainam.
Free Zones: Kaohsiung Harbor, Taichung Harbor, Taipei Harbor, Keelung Harbor, and Taoyuan International Airport.
Organizations Which Finance: Visit the website Invest in Taiwan.

Investment Opportunities

The Key Sectors of the National Economy: IT sector, IC sector, Electrical sector, etc.
High Potential Sectors: Tourism.
Tenders, Projects and Public Procurement: Tenders Info, Tenders in Taiwan Province of China
Asian Development Bank, Procurement Plans in Asia
DgMarket, Tenders Worldwide

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors: Energy.
Sectors in Decline: Agri-food and cheap textiles (competition from the Chinese workforce).

Finding Assistance For Further Information

Investment Aid Agency: Invest in Taiwan.
Other Useful Resources: MOEA
Doing Business Guides: Invest in Taiwan (investment guide).
Taiwan Commercial Guide 2010 - Buy USA

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