Approved FDI down almost 40% in 1st half of 2021

07/21/2021 12:40 PM
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CNA file photo
CNA file photo

Taipei, July 21 (CNA) The value of approved foreign direct investment (FDI) in Taiwan in the first half of 2021 plunged almost 40 percent from a year earlier, according to the Investment Commission.

The commission said the decline reflected the COVID-19 pandemic, which has created economic uncertainty, and the relatively high base of comparison set in the first half of 2020.

Taiwan's government approved US$2.34 billion in FDI during the January-June period, down 39.09 percent year-on-year, commission data showed. The number of approved FDI plans also fell 22.22 percent to 1,313 in the six-month period.

Several major investment projects were approved in the first half of 2020 that made the base of comparison relatively high, the commission said.

They included the US$800 million investment pledged by Denmark's Orsted Wind Power TW Holding A/S in offshore wind development, US$400 million in new investment pledged by Diodes Taiwan S.A R.L from Luxembourg, and US$270 million in new investment in its subsidiary in Taiwan committed to by Japan's Kioxia Corp., the commission said.

In the six-month period, the commission said, approved investment from Southeast Asian, South Asian, and Oceanic countries totaled US$297 million, up 57.5 percent from a year earlier, with companies based in Thailand, Singapore and Australia the major investors.

Investment from China in the first half of the year fell 45.94 percent from a year earlier to US$26.79 million, also because of a relatively high baseline.

The first half of 2020 saw investment pledges of NT$224 million (US$8 million) by Swancor (HK) Investment Co. and NT$360 billion by Hong Kong's Jin Yao Development Co., the commission said.

According to the commission, it has approved US$2.44 billion in investment from China since Taiwan lifted a ban on Chinese investment on June 30, 2009.

Meanwhile, the value of Taiwan's approved foreign-bound investment fell 10.27 percent in the first half of 2021 from a year earlier to US$4.42 billion, the commission said.

But investment to Southeast Asian, South Asian, and Oceanic countries rose 58.87 percent from a year earlier to US$2.24 billion, with Singapore, Vietnam and India the most favored destinations, it said.

The value of approved investment in China by Taiwan-based companies fell 52.43 percent from a year earlier to US$1.58 billion, according to the commission.

(By Liang Pei-chi and Frances Huang)


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