DTI targets FDIs from East Asia

CEBU, Philippines - The Philippines is eyeing to capture the migrating multinational manufacturing companies from East Asia. 

Department of Trade and Industry (DTI) undersecretary for industry and trade policy, and managing head for Board of Investments (BOI) Adrian S. Cristobal Jr., said the target now are the suppliers of these countries in China and Japan so that the Philippines can cluster them.

He mentioned the successful outcome of Canon and Brother.

However, he said this move does not mean that the Philippines will abandon its traditional markets and partners, “they continue to be important, but different approaches are necessary.”

“Although the confluence of events and many factors has shifted the eyes of investors to our country, promotion activities alone will not do it. Long term outlooks, strategies and plans are needed. We have to continue plugging supply chain gaps, increase productivity and competitiveness, and seek new markets,” Cristobal added.

But more coherence, vision and a long term strategy is needed, he said,  if the country is to sustain economic growth, particularly inclusive growth. For this purpose, the DTI developed and is implementing a unified industry and international trade strategy.

This strategy rests on three pillars:  first, is institutionalizing stakeholder engagement in industry and trade policymaking. This is a system of consultations with the private sector, labor, academe and civil society. Learning from the past, when adequate consultative mechanisms were not in place before engaging in trade negotiations, this time stakeholders will be participating from the very start. Not only do we ensure that our positions are responsive to the sectors affected, but also to enable them to be ready to utilize benefits or adjust to competition when these agreements take effect. We call this pillar “One Country, One Voice”.

Second, is the trade and industry policy research network and capacity building, where the Philippines aims to fill the gap in the bureaucracy’s capacity for policy research and policymaking with expertise outside of it. It created a network of 12 public and private think tanks to provide empirical research to support policymaking and negotiations. This pillar is called “One Country, One Network”

Third, is enhanced inter-agency coordination and capacity building for trade negotiators. ”We are strengthening the negotiation structure, improving processes and mechanisms for coordination, enforcement and monitoring of the implementation of our trade agreements. Our aim is to act as “One Country, One Team,” he said.

At the base of these three pillars, underpinning this entire framework is the industry competitiveness. 

According to Cristobal, this is one of the main shifts in strategy that was lacking in the past, a foundation upon which our international trade policy and negotiation positions are aligned.

“We need to identify the strengths and weaknesses of our industries, the opportunities and threats,” he said.

For this purpose, the DTI/BOI, in January 2012, launched the industry road mapping project that will culminate in the drafting of the Comprehensive National Industrial Strategy as provided under the PDP 2011-2016. The fundamental difference of this industry policy initiative is that the strategies or roadmaps are lead and crafted by the private sector, an acknowledgement that it is they who know their business, not government. (FREEMAN)