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Taiwan’s new southbound investment tops China’s in 2023
Taiwan’s investments in New Southbound countries in the first 11 months of 2023 have surpassed investments in Mainland China, according to the Ministry of Economic Affairs (MOEA). Investments in the New Southbound countries reached US$5.13 billion, a 7.26% year-on-year increase, outstripping investments in Mainland China, which stood at US$2.96 billion. This trend is driven by the supply chain diversification, accelerated by the U.S.-China trade war and major manufacturers’ strategies to decentralize operations. Investments in New Southbound countries now account for around 20% of Taiwan’s total overseas investments, whereas China accounts for approximately 11.5%. From January to November 2023, there were 2,102 approved cases of overseas-focused investments by Taiwanese and foreign entities, a decrease of 8.89% compared to last year. The amount invested reached about US$10.8 billion (approximately NT$323.7 billion), the second-highest for the period in the last 15 years but still representing a 13.04% decline from the previous year. Investments from New Southbound countries into Taiwan saw 609 approved cases within the same timeframe, an annual increase of 41.30%. The investment totaled approximately US$2.5 billion (about NT$75.7 billion), up 25.20% from the previous year, with the most significant inflows originating from Singapore, Thailand, and Malaysia. On a broader scale, the 504 approved cases of outbound investments from Taiwan marked a 2.44% annual increase, surging by 145.61% financially to roughly US$22.8 billion (approximately NT$684.4 billion). Investments in New Southbound countries revealed 195 approved cases, rising by 35.42% year-on-year, totaling around US$5.1 billion (approximately NT$ 154.1 billion) and constituting 20% of Taiwan’s total foreign investments. Singapore, Vietnam, and Thailand were the leading recipients. Conversely, approved investments in Mainland China amounted to 305 cases, down by 7.58%, with the approved investment sum decreasing by 33.91% to approximately US$2.96 billion (about NT$88.9 billion). Mainland Chinese investments in Taiwan experienced a 45.45% decline in approved cases to 24, with the investment figure falling 21.65% to about US$27.4 million (approximately NT$821.6 million).2023/12/20 20:45 -
Vietnam wins big as Chinese, US investment surges
Chinese companies are increasingly establishing supply chains in Vietnam as U.S. companies like Apple move production there, according to Japanese media reports. Export restrictions on advanced semiconductors and semiconductor production equipment to China by the Biden Administration have led to difficulties for Chinese manufacturers, prompting a shift in investment towards alternative manufacturing bases like Vietnam. Approved foreign direct investment in Vietnam increased by 15% from January to November 2023, with Chinese investment, including from Hong Kong and Macao, doubling from the previous year. Chinese investment in Vietnam is even higher when routed through subsidiaries based in Singapore and Thailand. Notable investments include Shandong Haohua Tire Co. Ltd.’s US$500 million investment and Trina Solar Co., Ltd.’s US$420 million decision. BYD Company also announced an expansion investment of US$144 million, bringing its total investment in Vietnam to over US$400 million. Japanese experts believe that Chinese enterprises must engage in joint advancements in cutting-edge technology with local entities to be seen as partners by the Vietnamese.2023/12/12 16:02 -
Taiwan trusts eye bullish market outlook with zero-fee funds
Investment trust companies in Taiwan, such as Jih Sun Investment Trust, Yuanta Investment Trust, Allianz Investment Trust, Taishin Investment Trust, First Investment Trust, and Cathay Investment Trust, are currently offering time-limited promotions that waive fund handling fees. These promotions, aimed at taking advantage of a bullish global financial market, include 0% transaction fees for regular savings plans and single payments. By focusing on Taiwan stock funds and funds invested in Vietnam, global industries, technology, and multi-asset classes, these companies are providing investors with opportunities to reduce investment costs. With an estimated profit of NT$3.4 trillion for Taiwan’s listed companies in 2024, a potential growth of 10% to 20% compared to 2023, and strong performance expected in the fourth quarter, the investment landscape in Taiwan looks promising.2023/12/12 11:48