German firms eye mining, maritime sectors

The country remains an attractive investment destination for German firms especially in the mining, maritime and services sectors, German-Philippine Chamber of Commerce and Industry president Franz Roland Odenthal said.

“There have been a number of big ticket investments in the past 12 months and we expect more to come in specifically in the call center and back office operations,” Odenthal said. According to Odenthal, German businesses are not worried about the perceived political noise and the tension in the southern part of the country.

“I can say German companies feel safe in their investments in the Philippines especially if they go into the PEZA (Philippine Economic Zone Authority) zone,” Odenthal noted.

Odenthal said Germany is the sixth largest investor in the Philippines. “There is really a good perspective over-all.”

However, he noted that investments in the country from German companies can grow further if the problem with German firm Fraport is finally settled. Fraport was involved in the now open Ninoy Aquino International Airport Terminal 3.

“The deal was that they (Fraport) should be paid in full before the terminal can be opened. They have not yet been fully compensated and this sends a negative statement,” Odenthal said.

For his part, German Ambassador to the Philippines Christian-Ludwig Weber-Lortsch said there are currently 250 German companies in the Philippines.

In addition to this, the Germans are giving $15 million worth of development assistance to the country.

Weber-Lortsch said more investments will come in when the country addresses the “bureaucratic impediments.”

According to the ambassador, the procedures for setting up business and getting permits in the country take too long. “Some withhold their investments for years until they get the necessary permits,” Weber-Lortsch said.

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