BERI: Taiwan the Third Best Investment Destination in the World

In the latest Report on the Evaluation of Environmental Risks of Investment for 2013, BERI (the US-based Business Environment Risk Intelligence) ranked Taiwan’s Profit Opportunity Recommendation the 3rd best among the 50 major countries assessed, behind only Singapore and Switzerland and the 2nd best in Asia, with an overall score of 72 (compared with the combined score of 73 last year, remaining the world’s No. 3). 

The Report gives Taiwan’s investment environment a grade of 1B, with a continued recommendation to invest.  According to the Report, Taiwan has been taking efforts to reinforce its external economic and trade relations by promoting execution of free trade agreements in particular.  BERI predicts that Taiwan will remain in the 3rd place in the ranking with an overall score rising to 73 during the 2014-2018 period. 

Taiwan performs especially well in the field of operation risk, ranking 2nd in the world and trailing behind only Singapore.  BERI notes that the sluggish private consumer demand has been holding back the local economy but contribution from exports are expected to stimulate economic recovery in 2014.  Also, Taiwan’s financial sector will maintain growth in 2014 and 2015, and in particular, most local banks will have adequate capital bases and stable profitability, BERI adds.  BERI also predicts that Taiwan will continue to remain in the 2nd position in the aspect of operation risk in 2014-2018.

In addition, the Report lists Taiwan as a country with low political risk, ranking the 10-lowest in the world and the 2nd-lowest in Asia, behind only Singapore.  Also, BERI believes that Taiwan’s political risk will go in positive direction and that its global ranking will move up to 9th-lowest in 2014 and 8th-lowest in 2018.

In the index of “remittance and repatriation factor”, Taiwan’s ranking tops the world and Asia.  In the Report, BERI points out that Taiwan has a healthy trade and current account surplus; its trade surplus had totaled USD28.244 billion in the first 10 months of 2013.  Its current account surplus is expected to reach USD55.775 billion, above the USD48.882 billion recorded in 2012.  Besides, the nation’s promising economic prospect will attract foreign investments in the coming two years.  BERI sees a continuous rise in foreign investment into Taiwan.  Also, BERI takes special note of the Taiwan Ministry of Economic Affairs’ devoted efforts to promote the establishment of Asia-Pacific regional headquarters of foreign enterprises in Taiwan, and there have been more and more foreign enterprises doing so.  BERI predicts that Taiwan will maintain its top ranking in the index of “remittance and repatriation factor” in 2014 and fall to the 3rd in 2018.  (January 2014)
/CCS