The Philippines will invite more American companies to put up or relocate their businesses in the country, according to the special trade envoy to the United States.
Jose E.B. Antonio, special trade envoy and former US ambassador, said his office is organizing “a public-private sector effort” to encourage more American firms to set up shop in the Philippines.
“This is the best time to lay the groundwork and put the country back in the radar to attract new investments,” said Antonio, who also chairs listed property development firm Century Properties Group Inc.
A series of virtual conferences and investment presentations are being planned with support from private sector business groups including the US-Philippines Society, American Chamber of Commerce of the Philippines, the Semiconductor and Electronics Industry of the Philippines Inc., the Management Association of the Philippines and the Harvard Business School Club of the Philippines.
Antonio’s proposal comes in the wake of more companies leaving China and setting up their hubs, or growing their presence, elsewhere in Asia. About 20 of these companies, including giant tech brands Apple, Bose, Dell, Intel, and Microsoft previously announced the relocation of their production and operations to other countries like India, Cambodia, and Vietnam. Consumer products companies, such as Brooks Running, Hasbro, Skechers, Steve Madden, and Whirlpool have done the same.
Based on the World Investment Report 2020 of the United Nations Conference on Trade and Development, foreign direct investment flows to the Philippines reached $6.4 billion last year, mainly from mergers and acquisitions deals in agriculture and energy. Of this figure, the US was the sixth largest contributor at 3 percent after Singapore, China, South Korea, Japan and the Netherlands, according to the Philippine Statistics Authority. US FDI in the Philippines was $6.9 billion in 2019, a 0.3-percent increase from 2018.
Antonio said the Philippines can still significantly increase its FDI inflows especially from the US by adding more comparative advantages and benchmarking with competitive countries like Vietnam, which is preferred for its lower cost of operations.
“We have an English-speaking and well-skilled workforce, a young and growing population, a strong domestic market, a wealth of natural resources, and a strategic location in a fast-growing region. Now we must let foreign companies know how they can take part in doing business here,” he said.