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Taiwan world's fourth-best place for investment: research firm

2012/05/07 22:12:45

Taipei, May 7 (CNA) Taiwan's investment environment ranked fourth among 50 countries and second in Asia, according to the results of a survey by an American rating company.

The survey, conducted by the Washington-based Business Environment Risk Intelligence (BERI), showed that Taiwan moved down one notch to the world's fourth-best investment destination, behind Singapore, Switzerland and Norway.

According to the previous rating in January, Taiwan was tied with Norway as the world's third-best investment destination.

Chiu Yi-che, director-general of the Department of Investment Services under the Ministry of Economic Affairs, attributed the lowered ranking to the changes in Taiwan's economic growth over the past two years.

In terms of gross domestic product growth, one of the factors considered in assessing operations risk, Taiwan fell from third to 11th, the main reason behind Taiwan's lower grade, Chiu said.

That dropped Taiwan's score in the category from 72 points to 71 points, but it still left Taiwan tied with Singapore as the countries with the lowest operations risk, he said.

Citing the survey, Chiu explained that Taiwan performed well in the areas of policy continuity and control of inflation.

Both Taiwan's political risk and foreign exchange risk retained the same grades as the previous rating, at 62 points and 84 points, respectively, the survey showed.

But the loss of a point in the operations risk category pushed it out of a tie with Norway in the overall rankings, which are based on an average of the scores in the three risk categories.

Meanwhile, according to BERI analysts, Taiwan is expected to attract more foreign investment over the next two years, while Taiwan-based companies will expand investment in neighboring countries, with Vietnam as one of the priority countries.

(By James Lee)