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Philippines aims to be top FDI destination in Southeast Asia
MANILA, Philippines – The Philippines is embarking on necessary reforms aimed at creating a business environment that is more conducive to investments as it targets to become a foreign direct investment (FDI) powerhouse in the region.
“Definitely we will have a stronger position as one of the most preferred FDI destinations in the region, with huge and relevant infrastructure spending and trade and investment reforms,” Trade Secretary Ramon Lopez told The STAR.
Lopez, who frequently meets and deals with foreign investors through trade and investment roadshows abroad, said the country is capable of posting the third highest FDI inflow level among Southeast Asian economies prior to the end of President Duterte’s six-year term.
“(We can become) one of the best, maybe top three to five in the region in three to five years,” Lopez said.
Lopez said the expected influx of foreign investments into the country would mostly hinge on the Duterte administration’s infrastructure spending program. The government has committed to ramp up spending on this sector, which was appropriated a budget of P8 trillion until 2022.
Measures are also underway to open up the economy and amend Constitutional provisions that hamper the entry of foreign investments.
Aside from these, Lopez said the government is undertaking various promotion programs as well as forging trade agreements that increase access to other markets by using the country as a manufacturing base and gateway to other economies in the region.
“Not to mention the solid foundation in the country such as managerial and skilled manpower resources, strong consumer base, demographic dividend, and growth momentum that improves our investment potential,” he said.
The Philippines in the past has been regarded as among the laggards in the region in terms of FDI inflows.
According to the Joint Foreign Chambers in the Philippines, net FDI in the Philippines was behind Singapore ($67.4 billion), Indonesia ($25.7 billion), Thailand ($11.8 billion), Malaysia ($10.5 billion) and Vietnam ($6.6 billion) in 2014 despite reaching a record level of $6.2 billion.
Last year, the country’s net FDI jumped 40 percent to an all-time high of $7.9 billion, exceeding the full-year target of $6.7 billion.
As a result, the Bangko Sentral ng Pilipinas recently upgraded its FDI projection this year to reach a record high of $8 billion.
Among the investment promotion agencies, the Board of Investments, which is chaired by Lopez, contributed 22.5 percent or $1.78 billion of the total FDIs recorded last year.
Source: http://www.philstar.com/business/2017/04/25/1693521/philippines-aims-be-top-fdi-destination-southeast-asia