2013 BOI-approved investments hit P466B, up 29%

The Board of Investments (BOI) posted investment approvals of P466.03B in 2013, up 29% from the P360.35B recorded in 2012. Over 282 projects were approved and are expected to generate 38,100 jobs when fully operational. Sustained interest from domestic investments registered P345.39B or 74% of the aggregate investment figure with the remaining 26% or Php120.65B coming from foreign sources which have continued to remain bullish and upbeat, reflecting an increase of 63% from 2012. “What we aim for, however, are investments in sectors to directly impact on the generation of more stable and decent jobs,” Trade and Industry Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. “In terms of sectors, the growth drivers will most likely be the whole manufacturing sector, construction, BPOs, telecommunications, wholesale and retail trade, consumer durables, housing, and tourism,” Cristobal added. Foreign direct investments (FDIs) are expected to continue to steadily increase with focused interest on the country’s political and economic stability, while strong consumption of the domestic market, reconstruction and infrastructure spending, the country’s stable macroeconomic condition, among others, will drive growth in the domestic front. Domestic Investments The increase in domestic investments came as a result of the approval of big power projects like Redondo Peninsula Energy, Inc. (P62.86B), GNPower Ltd. Co., Pagbilao Energy Corporation (P39.90B), San Miguel Consolidated Power Corporation (P25.84B), FDC Misamis Power Corporation (P31.94B), SMC Consolidated Power Corporation (P25.51B), First Natgas Power Corp. (P21.83B), Minenergy Coal Corporation (P14.55B) and Petron Corporation (P11.18B), among others. As expected, such power projects largely made up the electricity, gas, steam and air conditioning supply sectors, which recorded the biggest share of investment commitments at P331.10B or 71% of the total figure, followed by transportation and storage with P67.66B (or 15-% share), real estate activities, specifically, the mass housing sub-sector with P42.10B (or 9-% share), manufacturing sector with P13.79B (or 3-% share) and the accommodation and food service activities composed primarily of hotels, resorts and other accommodation facilities with P4.81B (or 1-% share). Foreign Investments The British Virgin Islands (BVI) topped the foreign list with committed investments worth P61.51B or 51-% share of the total foreign investments in 2013. The notable project from BVI is the approval of Energy City Philippines Holdings, Inc. (100% BVI) located in Bataan, with investments worth P45.65B. The United States came in second with investments amounting to P41.76B or 35% of the total investment approvals from foreign sources during the period. The bulk of these investments were from the approved project of GNPower Limited Co. with P41.23B (80-% share), a 100% American-owned company, for the operation of its 2X150MW coal-fired power plant (GNPower Phase II project) in Mariveles, Bataan. The Netherlands placed third with P5.98B (5-% share), followed by South Korea (P2.26B or 2-% share), and Australia (P1.82B or 2-% share) rounding up the top five.

World Economic Forum Annual Meeting held in Davos, Switzerland

WEP12

H.E. Secretary Gregory L. Domingo of the Department of Trade and Industry served as the President’s Special Envoy to the World Economic Forum Annual Meeting held in Davos, Switzerland from 22 – 25 January 2014. The Philippine delegation was composed of Treasurer Rosalia De Leon of the Department of Treasury, and officials from the Philippine Embassy in Berne, Switzerland and the Permanent Mission of the WTO, Geneva.

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SACC Meeting in Davos

H.E. Secretary Gregory L. Domingo met with the Swiss Asian Chamber of Commerce (SACC) at the sidelines of the World Economic Forum Annual Meeting held in Davos, Switzerland from 22 – 25 January 2014.

SACC emphasised their keen interest in improving business between the Philippines and Switzerland. It may be recalled that SACC participated in the WEF 2013 Business Roundtable with the President held in January of 2013. The group extended their commitment to constructively engage, specifically in preparing for a business delegation to the Philippines following the ratification of the Philippines- Switzerland Joint Economic Commission (ratified on December 2013). The group likewise supported the prospects of increased trade with a future PH-EFTA FTA. A business mission is scheduled to arrive in Manila on November 2014.

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Philippine Trade and Investment Center Consulate General of the Philippines Suite 602, 3250 Wilshire Boulevard Los Angeles, California 90010

Contact Information:

Telephone Number : +1.213.3881029 / 3888376 Fax Number : +1.213.3884739 Email Address : LosAngeles@dti.gov.ph JoseMaDinsay@dti.gov.ph Skype : ptic-la

China’s Automotive Giant GAC Motor Plans to Invest in the Philippines

Acknowledging the sustained economic performance of the Philippines and in line with their goal of expanding in the ASEAN, China’s Guangzhou Automobile Group Co., Ltd. (GAC Motor) officials visited the Philippines for an investment mission last January 13-18, 2014. The delegation was headed by Mr.Marlon Ma, Regional Sales Director and Mr. Johnny Chin, Regional sales representative.

AGAC Motor is the oldest automotive company in China with its roots tracing back to the 1950’s. The subsidiaries of the group include GAC TOYOTA MOTOR Co., Ltd, GAC HONDA MOTOR Co., Ltd, GAC FIAT MOTOR Co., Ltd, GAC MITSUBISHI MOTOR Co., Ltd, Guangzhou Automobile Group Autobus Co., Ltd, GAC-HINO (Shenyang) Motors Co., Ltd and Wuyang-Honda Motors (Guangzhou) Co., Ltd. The GAC Group sold more than 1 million cars and buses in 2013 with total revenue of US$ 24.15 billion and was ranked 483 of the Global Fortune 500 in 2012.

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