2023-08-14
The government will implement the three major programs for investing in Taiwan from 2019 to 2024 to encourage companies to make investment. As of August 11, 2023, 1,387 companies passed the qualifications review with total investment amount exceeding NT$2.09 trillion, and is expected to create over 146,000 domestic employment opportunities.
It takes about 3 to 5 years from when a company invests in a new plant, purchases equipment, to when it commences formal production. If a project passes the review in 2022, it is expected to be completed between 2025 and 2027. As of the end of 2022, 409 companies were expected to complete their investment. Despite the pandemic, Russo-Ukrainian War, shipping delays, labor shortage in the construction industry, raw material price hikes, and inflation, the companies did not give up on their investment and utilized their own funds and government resources, with 311 companies still completing their investment according to schedule, which is a completion rate of 76% and not less than 30%. The report incorrectly used all investment projects that will be completed in the next 3 to 5 years as the denominator. This is the same as questioning why an investment project that just began at the end of last year has not been completed yet, neglecting the time needed for plant construction. An investment is not a magic trick and plant construction takes time. At present, 1,387 companies have been approved, and except for the 3% of companies that terminated their project, the remaining 97% has completed their investment or continues to carry out the investment according to plan.
In terms of investment amount, 83.92% of the total investment amount of the three major programs was invested as of April 2023, in which 88.76% of the investment amount of the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan, 76.84% of the investment amount of the Action Plan for Accelerated Investment by Domestic Corporations, and 78.19% of the investment amount of the Action Plan for Accelerated Investment by SMEs was invested. The percentage was under 80% for both the Action Plan for Accelerated Investment by Domestic Corporations and Action Plan for Accelerated Investment by SMEs, and was because the two action plans were implemented about six months after the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan, in order to drive supply chain investments.
In terms of the increase in employment opportunities, based on the number of people enrolled in labor insurance provided by the Department of Statistics in February 2023, the number of people employed Taiwanese businesses that returned to invest in Taiwan in December 2022 increased by 34,954 or 9.8% compared to July 2018, higher than the overall increase of 0.6% in number of people employed in the manufacturing industry, showing that Taiwanese businesses greatly benefit employment by returning to invest in Taiwan.
To encourage companies to implement investment plans, if a company cannot complete its investment according to the project contents or period, the Ministry will actively look into the company’s business situation and assist it in changing plans or extending the period, in hopes that the company will be able to eliminate investment barriers and gradually implement the investment plan once it obtains sufficient funds through a preferential loan and assistance from the Ministry. As of August 11, 2023, 508 companies have received assistance with changing their plan or extending the period, in which 77% of the companies made changes due to the pandemic delaying equipment delivery and installation or plant construction.
The Ministry continued to implement the three major programs for investing in Taiwan this year to maintain investments from the private sector, and also encourage companies to upgrade through AI and transition towards green energy. The entire period (2019 to 2024) is expected to attract a total of NT$2.4 trillion in investments, and the goal is to create 168,000 employment opportunities, while assisting companies with investing in Taiwan. InvesTaiwan serves as a one-stop window for the programs, controls projects, and has dedicated personnel to provide customized services throughout the investment process, from application during the initial stage of an investment, periodic tracking of investment progress and eliminating investment barriers in the mid-term, and tracking and concern in later stages of an investment plan.
Spokesperson of InvesTaiwan: Acting COO Chen Ming-Chu
Telephone: 02-2311-2031 Ext. 802
Mobile Phone: 0938-637-901
Email: nicole@invest.org.tw
Source： Department of Investment Services, MOEA
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