Despite mess, RP still luring Chinese investors

MANILA, Philippines - Despite the embarrassing outcome of the national broadband network (NBN) deal with ZTE Corp. of China, the Philippines remains unflinching in its effort to portray itself as an investment destination for international businesses, particularly Chinese.

China has called the NBN controversy an “unfortunate” incident and a “learning experience” for its businessmen.

“We are taking the first step given the encouraging signs of global economic recovery, so that when you aggressively take your first steps, it will be toward the Philippines,” said Elmer Hernandez, managing director of the Board of Investments (BOI), at the Philippine Business Forum last Monday at the Philippine Embassy in Beijing.

Hernandez, who is also an undersecretary of the Department of Trade and Industry, led a BOI investment mission to five key Chinese cities – Beijing, Tianjin, Shanghai, Chongqing and Hangzhou – from Aug. 24 to 29 to explain to Chinese business groups and investors the policies, rules, regulations, and incentives on where, in what areas, and how to invest in the Philippines.

More than 40 Chinese companies were represented in the Philippine Business Forum.

In the forum, Hernandez encouraged Chinese business groups to consider the Philippines as their investment

destination, citing “positive discussions” that have been made about strengthening Chinese investments in the Philippines.

“We have taken efforts to shape a more investor-friendly environment in the Philippines. Certain reforms have been introduced into our bureaucracies to allow for a much more expedient and efficient trade and investment facilitation,” he said.

“We have ushered in a digital economy as an essential part of the country’s productivity that will allow easier access to markets and a more conducive environment for knowledge and technology transfer,” he added.

BOI Governor Francisco Ferrer also presented to the forum the major advantages of doing business in the Philippines.

He stressed that the Philippines is gradually becoming an attractive location for manufacturers in Asia because of its stable economy, quality human resources, reliable infrastructure support, strategic location, hospitable lifestyle, and attractive investment incentives.

BOI executive director Lucita Reyes, for her part, said regulations have been liberalized in the country to facilitate the entry of foreign investments.

She encouraged Chinese business groups to consider investing in motor vehicles, mining, bio-ethanol, engineered products and business process outsourcing.

“We would like to invite you to visit the Philippines to see for yourselves what our country and people have to offer. I assure you that you will not be disappointed,” Philippine Ambassador to China Sonia Brady said. 

Brady said the NBN scandal has opened the eyes of investors to the necessity of knowing how to conduct business in both China and the Philippines.

“I can say the NBN upset Chinese companies a bit. They know they want to do the right thing and they want to do the right thing in the right way but sometimes problems are inevitable,” Ambassador Liu Jian-chao said earlier.

“Sometimes we try to expand our economic cooperation and ties, but sometimes something may be done in a rush and when we’re about to expand further on economic cooperation, sometimes problems are inevitable. It’s a learning experience for both sides and for all the people involved so let’s take the approach of doing things in the right way,” he added. – Pia Lee-Brago