In the first quarter of this year, foreign direct investment amounted to $15.13 billion, a decrease of 8.9% compared to the first quarter of last year. Foreign direct investment surged dramatically after the outbreak of COVID-19 in 2021-2022, but it seems to be gradually returning to pre-COVID-19 levels. As U.S. President Donald Trump emphasizes direct investment in the United States, first-quarter North American direct investment has decreased compared to the same period last year.
According to the Ministry of Economy and Finance, foreign direct investment in the first quarter of this year was $15.13 billion, marking a decrease of 8.9% compared to the first quarter of the previous year ($16.6 billion). It decreased by 16.6% compared to the fourth quarter of last year ($18.14 billion). There was also a 7.4% decrease compared to the average for 2023 ($16.34 billion).
By sector, the largest investment was in the financial and insurance industry at $7.74 billion. It was followed by manufacturing ($3.56 billion), real estate ($1.09 billion), and mining ($1.05 billion). While foreign investment in the financial and insurance industry and mining increased, a decline in manufacturing, real estate, and retail investment led to an overall decrease in total investment.
Regionally, North American direct investment was the highest at $5.82 billion. However, this represented a decrease of 18.5% compared to the first quarter of the previous year ($5.82 billion). A Ministry of Economy and Finance official noted, "Investment in the United States has significantly declined due to reduced investment in the financial and insurance industry," and added, "Investment in U.S. manufacturing in the first quarter was $1.69 billion, the same level as the previous quarter."
First-quarter European direct investment ($3.38 billion) also decreased by 18.5% compared to the first quarter of the previous year, while direct investment in Africa ($5 million) and the Middle East ($3 million) decreased by 82.3% and 76.3%, respectively. However, investment in Asia was reported at $3.03 billion, marking an increase of 26.4%. Direct investment in Oceania also saw a significant increase of 110.4%, amounting to $590 million.
The government aims to support domestic companies in conducting stable business activities overseas amidst rapidly changing trade environments characterized by U.S. tariff policies, high U.S. interest rates, and a global economic downturn. The Ministry of Economy and Finance said, "We will closely monitor the situation and enhance communication and cooperation with key investment target countries in various ways."