Eleven agencies tasked to lure investments into the country will focus
efforts on 10 target sectors to double foreign inflows by 2014.
The agencies, which include the Board of Investments (BoI) and the
Philippine Economic Zone Authority, will be drafting strategies to
harmonize marketing efforts under the first-ever Philippine Investment
These target sectors are agro-industry, food processing, electronics
and chip manufacturing, business process outsourcing and information
technology, energy, mining, logistics, aviation, shipbuilding, and
The crafting of the investment promotion plan, first announced in May
2009 and funded by the Japanese International Cooperation Agency, seeks
to have agencies work with instead of against each other to attract
foreign direct investments.
A draft has listed target sources of investments, investor facilitation
services offered in competing countries, and strategies such as sharing
a supplier database to support incoming ventures.
The steering committee has agreed to have the plan focus on 10
"opportunity sectors," said Bernardo F. Angeles Jr., who is the
assistant head of the technical working group.
"We then assigned a sector to an investment promotion agency with the
assumption that each is knowledgeable in a certain area given the type
of investments it handles," Angeles said in a telephone interview on
Friday without elaborating.
The sectoral strategies will then be used by all eleven agencies.
Common collateral materials will be made and information these agencies
give to interested investors will be made uniform.
"The target is to double [foreign direct investment] inflow in five years by 2014," Angeles said.
Foreign direct investments increased by almost half to $1.806 billion
last year, but still short of the $1.949 billion recorded in 2007,
central bank data showed.
The Philippines bagged only 2.5 percent of foreign direct investments
that went to Southeast Asia in 2008, while neighbors Indonesia,
Malaysia, Thailand and Vietnam cornered 12-16 percent each, latest data
from the Association of Southeast Asian Nations showed.
Foreign direct investments, unlike portfolio investments that can leave
at the first sign of trouble, are generally useful whether things go
well or badly since these are placed in so-called brick and mortar
enterprises that generate jobs for thousands of Filipinos.
"This plan will assist the BoI given that our trade representatives are
lacking abroad. We have limited manpower. We are tapping other
investment promotion agencies to help," Angeles said.
The investment promotion plan, he added, also seeks to lessen confusion
confronting prospective investors on various investment sites and
Sought for comment, the Joint Foreign Chambers (JFC) batted for a
higher investment target and offered information it was also compiling
on how to boost the country’s competitiveness.
Last year, the group identified sectors similar to those listed on the plan that could bring in sizeable investments.
"We held [focus group discussions] on all seven sectors. We’re going to
present [the findings] to the public on April 12," American Chamber of
Commerce of the Philippines Executive Director Robert M. Sears said in
a telephone interview on Monday.
"We’d like to have an exchange of notes [with the committee]," European
Chamber of Commerce of the Philippines Executive-Vice President Henry
J. Schumacher said in a separate telephone interview.
"A doubling of FDI levels in five years is not a ‘super’ target,"
Schumacher added. "Given that the Philippine share is very low, I think
we should go for a higher target".
Report Source: http://www.gmanews.tv/story/186786/rp-investment-promotion-plan-to-focus-on-10-sectors