DTI to China firms: Invest more in PH

The Department of Trade and Industry (DTI) has urged Chinese corporations to take advantage of investment opportunities in the Philippines, particularly in the manufacturing sector.

During the first Manila Forum for China-Philippines Relations, Trade Secretary Ramon Lopez said that while several Chinese firms already had a presence in the country, opportunities still abound.

As examples, he cited Dito Telecommunity Corp., which is backed by state-owned China Telecommunications Corp., the APF Group Holding Corp., which produces slabs and hot rolled coils in Misamis Oriental province; Florida Blanca Steel Industries, which manufactures steel pipes in Pampanga province for export; and Liangan Power Corp., a renewable energy developer in Lanao del Norte province.

“[T]here is still a wide range of investment opportunities available in our country that investors can take advantage of presently. These include [the] manufacturing of e-vehicles, e-bikes and bicycles; light industries manufacturing for connectivity devices; bags; and textile manufacturing; and Internet of Things (IoT), smart manufacturing and AI (artificial intelligence), among so many others,” Lopez said.

According to him, China is the country’s top trading partner, third-largest export market and foremost import supplier, as well as second biggest investment partner for 2019.

As members of the Regional Comprehensive Economic Partnership (RCEP), the Trade chief said China could also strategically partner with the Philippines, citing the latter’s comparative advantage to become a hub for innovation, research and development, and manufacturing, particularly in design and creativity-oriented products and services.

“The Philippines can also become a center for education and training. Once the agreement becomes effective, RCEP is expected to boost intra-regional investment and trade with Asean expected to play a vital role in this agreement,” he said.

The RCEP was signed on November 15 by the 10 members of the Association of Southeast Asian Nations — Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — as well as Australia, China, Japan, New Zealand and South Korea.

The RCEP was built upon the existing Asean+1 FTAs with the goal to strengthen economic linkages and to enhance trade and investment-related activities, and to contribute to minimizing development gaps among the parties.

During the forum, Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB), and Chinese Ambassador to Manila Huang Xilian vowed to continue helping the Philippines and other countries during and after the coronavirus pandemic.

The AIIB and the Asian Development Bank (ADB) earlier approved a $750-million loan as budgetary support for the government’s efforts to increase its Covid-19 testing capacity, improve the agriculture sector, and extend conditional cash transfer and emergency assistance to poor households.

“A second similar project, co-financed by AIIB and ADB, is being developed. This time, [it is] aimed at helping the Philippine government rapidly procure eligible Covid-19 vaccines.

AIIB is exploring a loan up to $300 million to provide critically needed vaccines to assist the Philippines in vaccinating its people, and mitigating the pandemics adverse health, social and economic effects,” Liqun said.