European investors keen to do business in Phl

MANILA, Philippines - The trade community in the European Union is “very keen” to do business in Philippines right now and just needs a little more convincing about the country’s investor-friendly environment, according to a key official of the European Commission (EC).

Helena Koenig, directorate-general for trade of the EC, said the Asian region is increasingly catching the eye of potential investors from the EU over the past few years. Moreover, their interest has been shifting from China to the countries making up the booming Association of Southeast Asian Nations (Asean).

The Philippines is thus well positioned to take advantage of this development to corner more of the EU’s foreign direct investments (FDIs), she said.

The EU, the world’s biggest economy and largest investor, remains the country’s top investment partner. The EU’s total local investments rose further by two percent to euro 7.6 billion ($10.3 billion) as of 2012, or about 30 percent of total FDI stock in the Philippines.

The EU’s direct investments into the Philippines recovered by 65 percent to euro 400 million in 2012.

But Koenig said the FDI inflows from EU could still go up significantly. Eurostat data indicate that the country received only four percent of the euro 208 billion in total EU direct investments in the Asean region as of 2012.

Overall, European companies in the country today number around 600 and employ an estimated 400,000 Filipinos.

“The country has a lot going for it. Its macroeconomic indicators are good, and its global ranking in ease of doing business, global competitiveness, and transparency continues to improve,” said Koenig, who visited Manila this month to speak at the 1st EU-RP Business Dialogue.

Koenig said EU enterprises are taking a wait-and-see stance for greater assurance from the Philippine government that their investments will be safe and their business ventures in the country will be profitable.

She added that European firms are watching closely how the Philippines will handle a number of ticklish political and economic issues, including talks on long-term constitutional change and economic reforms to open up the Philippine market further.

The administration should consider intensifying its marketing and promotion efforts on the Philippines as a key investment destination now that the EU is exploring opportunities in the ASEAN bloc.

“The EU is looking at the Philippines, but it is up to the administration to convince European corporations to take that final step toward investment,” Koenig said. 

Meanwhile, Eurostat figures show that in 2013, EU-Philippine trade in goods increased by nine percent to euro 10.8 billion, the largest in a decade, pushing the Philippines up to 46th place from 49th among Europe’s top 50 trading partners in 2012.

EU exports to the Philippines rose by 19 percent to euro 5.7 billion last year, while imports were stable at euro 5.1 billion.