MANILA, Philippines — The Philippines is wooing Cambodian companies to consider business opportunities in the country as it further develops its manufacturing sector.
President Marcos made the call during a CEO roundtable meeting with Cambodian business leaders.
“I do not talk about recovery of the economy, I talk about transformation of the economy because the new economy is going to be different from everything that we did in 2019. And so this is what we are looking forward to and I hope to see you all in the Philippines soon,” Marcos said.
Department of Trade and Industry Secretary Alfredo Pascual, who was also in the meeting, described the CEO roundtable as an avenue for business leaders from both countries to connect and seize a visible surge of development in both economies.
“For the DTI, we note the sectors represented by our friends from Cambodia: logistics, hospitality, retail, pharmaceutical manufacturing, IT and business process outsourcing, and startup development. These very well match our priorities back in the Philippines too,” Pascual said.
While Cambodia is a small country relative to the Philippines, Worldbridge Group chairman Rithy Sear believes there are many ways the two countries could learn from each other and work together.
“Many of the same industries that the Philippines has excelled in can be developed here in Cambodia, not as competition to Filipino companies, but as complementary extensions of existing operations and supply chains; adding resilience and increased capacity to serve ASEAN and the global markets,” Sear said.
“In terms of serving the ASEAN domestic market, Cambodia is centrally located between Thailand and Vietnam. This provides an advantage for the distribution of goods manufactured in Cambodia, taking advantage of RCEP (Regional Comprehensive Economic Partnership),” he added.
The RCEP is a multilateral trade agreement between and among ASEAN countries, including the Philippines, and China, Japan, South Korea, Australia and New Zealand. It provides for an open, inclusive and rules-based trading system to promote deeper economic integration in the region.
The trade deal is expected to boost Philippine exports through enhanced market access in the region. It would provide cheaper goods for production and manufacturing, as well as ensure transparent rules and clear mechanisms for resolving trade issues and concerns, and also allow micro, small and medium enterprises to participate in the global value chain.
Pascual recently said that the Marcos administration is committed to ratifying the RCEP.
Pascual also joined other ASEAN member states in the 21st ASEAN Economic Community Council (AECC) meeting in Cambodia and reiterated the country’s commitment to join the RCEP as soon as possible.
The 21st AECC serves as the culmination of a series of high-level meetings under the ASEAN Economic Pillar for Cambodia’s ASEAN 2022 Chairmanship.
AECC Ministers discussed the status and implementation of Cambodia’s Priority Economic Deliverables (PED) for their ASEAN 2022 Chairmanship.
Of these key PEDs and annual priorities, Pascual welcomed the progress made by ASEAN in facilitating economic integration in the region especially in the areas of trade facilitation, movement of natural persons, digital transformation, and sustainable economic development.
The trade secretary also stressed the expansion of the List of Essential Goods to cover vaccines and vital supplies and equipment to address supply chain resiliency and connectivity, as well as the substantial conclusion of the negotiations for the Protocol to Amend the ASEAN Agreement on Movement of Natural Persons which is seen to facilitate the entry and exit of working professionals in the region.
He also highlighted the importance of deepening trade and investment relations with ASEAN’s key trading partners as a vehicle for post-pandemic economic recovery.
Moreover, the Philippines, represented by Pascual, joined other ASEAN Member States and the United Kingdom (UK) in endorsing the Work Plan to Implement the ASEAN-UK Joint Ministerial Declaration on Future Economic Cooperation during the 2nd ASEAN Economic Ministers-UK Consultations held at the sidelines of the 40th and 41st ASEAN Summit in Phnom Penh, Cambodia.
The Work Plan is expected to further strengthen and set the direction of ASEAN and the UK’s economic relations. It builds on existing initiatives and possible cooperation programs between ASEAN and the UK in the areas of sustainable growth, infrastructure development, and digital transformation, which are important areas for ASEAN’s economic integration and post-pandemic recovery efforts.