Taiwan saw 1,016 new investment projects worth NT$719 billion between January and July, which is 65.36 percent of the government's NT$1.1 trillion target for the year, the Ministry of Economic Affairs (MOEA) announced yesterday.

The MOEA revealed the figures during a meeting on the government's business solicitation efforts, which are intended to keep the nation's economic growth this year at five percent.

The government has repeatedly stressed the importance of private investment as a driver for Taiwan's growth in addition to exports, which account for a hefty portion of the island's gross domestic product (GDP).

This year, Taiwan's export growth is expected to hit 10 percent, a “conservative” estimate considering exports had grown 16 percent during the first half, said Chuo Shih-yuan, head of the Bureau of Foreign Trade under MOEA.

However, that is not to brush aside the importance of private investment, which, along with exports, consumption and government spending, makes up a country's GDP, MOEA said.

From January to July, a total of NT$719 billion of new investments have been made, an increase of 10.68 percent year-on-year, the ministry said.

Separately, the metal industry will see strong investments this year, due to the implementation of the cross-strait economic cooperation framework agreement (ECFA), MOEA said.

According to the ministry, a total of 57 metallic products are included in the early harvest list under ECFA, in essence a free trade agreement between Taiwan and China in the absence of diplomatic ties.

Products on the early harvest list are subject to preferential tax treatments, which allow manufacturers from both sides to save the cost of selling goods and services.

According to MOEA, from January to July, the metal industry has seen NT$82.4 billion of investments made by 161 firms. The investment figure is a 8.4 percent from the same period last year.

For the whole year, investments totaling NT$120 billion are expected to flow into the metallic industry, whose production value may reach NT$2.56 trillion by the end of the year, MOEA said.

Among the firms making the investments, China Steel Corp. will spend NT$14 billion to expand its electrical steel sheets production line, while Catcher Technology will invest NT$10.25 billion producing magnesium alloy cases for consumer electronic devices, MOEA said.