Taiwanese investors show interest in NMI

A group of Taiwanese investors has signified intentions to infuse fresh capital into the Northern Marianas by venturing into computer software and furniture production, a development enticed by recently-enacted investment incentives law.

Free Trade Zone Authority Chair Karl Reyes met with Taipei Economic and Cultural Office Director-General Leo Chen-Jan Lee last week where possible business ventures by Taiwanese investors into the CNMI were discussed.

The FTZA met with the Taiwanese trade delegation last April 16 at the Department of Commerce to tackle business opportunities at the proposed free trade zones in the Commonwealth.

Mr. Reyes said the Taiwanese delegation also took the chance to look for possible areas around the Northern Marianas that may house their proposed offices and production plants.

Also, the group explicitly talked about the Headnote 3(a)’s privileges and the number of potential Taiwanese investors who can avail of the incentives offered by the CNMI government to new foreign investors.

Mr. Lee disclosed that several companies in Taiwan involved in computer software production and furniture manufacturing believed that business will thrive in the Northern Marianas since tax credits and a duty-free access to the US can be availed by export companies here.

Mr. Lee left for Taiwan last week to disseminate information and details about the CNMI to other Taiwanese businessmen who may be interested in establishing businesses in the Northern Marianas.

Members of the Taiwanese delegation who visited the island are responsible in the exportation of computer software products and furniture to the mainland US.

Investors believe that putting up export firms in the CNMI will cost them less due to the existing and new incentives they can avail while doing business here.

Meanwhile, Mr. Reyes disclosed that the FTZA will again meet with the Taiwan Economic delegates in the following weeks to formulate regulations to prevent possible conflict with the qualifying tax certificate forms drafted by the Commonwealth Development Authority.

FTZ has also asked the Attorney General’s Office and the government’s legal counsel to offer legal opinions and guidelines on various concerns like tax forms, revenues and taxes.

Just recently, the CNMI played host to 59 foreign investors who traveled to the islands for a two-day trade mission upon the invitation of Michael Kwan, chairman of the Hong Kong Entertainment Ltd., which operates the multi-million dollar facility Tinian Dynasty Hotel and Casino.

The businessmen flew over from mainland China and Hong Kong to look around for possible investment opportunities in the Northern Marianas.

Although no concrete pledges were made by any of the 59 visiting investors, officials are upbeat that the fact they have come all the way to the islands for possible investments is already a positive sign.

Previous reports claimed CNMI has been losing investors to Guam due to the absence of a good set of incentives in the Northern Marianas, unlike in Guam where foreign investors need not deposit $100,000 for security.

In fact, a little over 10 foreign businesses have so far agreed to pump in combined investments of less than $10 million between February 1997 and middle of last year. (EGA)