Taiwan Ranked as the Third-best Destination for Investment in the 1st BERI Report in 2022
2022-05-02
According to the 1st (April) Business Environment Risk Intelligence (BERI) Report in 2022, Taiwan ranked 3th in the world in profit opportunity recommendation (POR) (ranked 4th in the third report in 2021) with a total score of 62 points (scored 60 points in the third report in 2021), only behind Switzerland and Norway among the 50 major countries that were included (see Table 1 and Table 2).
Taiwan ranked 1st in Asia, tied with South Korea and higher than other Asian countries, such as Singapore, China (ranked 6th in the world with 58 points), and Japan (ranked 13th in the world with 55 points).
Overall, Taiwan’s investment environment received a rating of 1C (same as last time), and the BERI recommended that investors increase investments and business activities. Among risk indices, Taiwan improved in Operations Risk Index and Political Risk Index, and maintained the same place in Remittance and Repatriation Factor.
I.Operations Risk Index (ORI): Improved from 3rd place to 2nd place.
Taiwan ranked 2nd in the world with a score of 65 points (previously ranked 3rd with 63 points) in the ORI, only behind the United States (1st worldwide with 69 points). Taiwan ranked 1st in Asia, higher than other Asian countries, such as South Korea (5th worldwide with 69 points), China (15th worldwide with 54 points), Singapore (18th worldwide with 50 points), and Japan (28th worldwide with 44 points).
Taiwan ranked in the top 5 in 11 of the 15 sub-indices under the ORI in this report: policy continuity (4th), attitude towards foreign investors (4th), inflation (5th), balance of international payments (4th), economic growth (2nd), currency convertibility (3rd), enforceability of contracts (2nd), labor cost/productivity (3rd), professional services and contractors (2nd), communications and transportation (2nd), and short-term credit (1st). Taiwan also ranked in the top 10 in internationalization (6th), administrative efficiency (6th), local management and partners (6th), and long-term loans and venture capital (4th).
II.Political Risk Index (PRI): Improved from 28th to 24th.
Taiwan ranked 24th worldwide with a score of 42 points (previously ranked 28th with 38 points) in the PRI. Taiwan ranked 7th in Asia, behind Singapore (3rd worldwide with 59 points), China (5th worldwide with 57 points), and Japan (7th worldwide with 56 points).
BERI expects Taiwan to rank 25th (44 points) in the PRI in 2023 and 24th (48 points) in 2027.
III.Remittance and Repatriation Factor (R-Factor): Maintained 1st place, same as last year.
Taiwan ranked 1st worldwide with a score of 80 points (same place and same score), higher than other Asian countries, such as South Korea (6th worldwide with 71 points), Singapore (8th worldwide with 65 points), Japan (12th worldwide with 64 points), and China (13th worldwide with 63 points).
Among the 4 sub-indices under the R-Factor in this report, Taiwan ranked 1st worldwide in accumulated international reserves, foreign exchange generation, and foreign debt assessment.
BERI mainly surveys multinational enterprises, and references the economic data of each country as the standard for its ratings. Its survey focuses on the risks and opportunities of companies to obtain profits when doing business in each country. Results are provided for reference only, and investors should still be careful when making investments.
Spokesperson: Counselor Hsieh Hsiu-Ping
Telephone: 02-2331-6361, 0970-431-205
Email: hphsieh@moea.gov.tw
Contact Person: Chuang Wen-Chang; Section Chief
Telephone: 02-2389-2111#110, 0922-007-093
Email: wcchuang@moea.gov.tw
Source： Department of Investment Services, MOEA
