The Philippine trade delegation in Europe is finalizing several trade deals with a group French companies following a meeting organized by the French business confederation MEDEF.
The Department of Trade and Industry, on the third day of the three-week European trade mission, said it is in the thick of negotiations with 13 French companies for a fresh set of business collaboration.
Trade Secretary Alfredo Pascual urged French investors to contribute to the rapidly expanding business opportunities in the Philippines, highlighting the various reforms enacted by the Philippine government to sweeten the package of incentives offered to investors.
“Our government has implemented reforms to accommodate work-from-home arrangements and prioritize the well-being of our workforce. We collaborate with the private sector to provide business matching solutions and integrate Philippine-based businesses into the global value chains. Sectoral roadmaps are being developed to enhance the domestic supply chains, implement science and technology driven industrial policies, and upskill our human resources,” he said.
He said the recent fiscal and business reforms heralded the entry of significant investments in various industries with a 200-percent surge in approved investments to €11 billion in 2021 across 235 projects.
Approved projects at the Board of Investments amounted to €7.8 billion in the first quarter of 2023, representing a 155-percent increase from a year ago.
Pascual said the Philippines ranked fourth among ASEAN countries as an FDI destination in 2021. From 2020 to 2022, it received $28 billion in net foreign direct investment with Europe accounting for a significant portion.
The Philippines, he said, aims to further improve its ranking during the term of President Marcos Jr.
He said there are more compelling reasons to consider investing in the Philippines, as it is recording a steady march toward economic recovery and expansion.
GDP growth rate in 2022 hit 7.6 percent, the fastest since 1976. The Philippines is projected to have one of the highest GDP growth rates in ASEAN in 2022, positioning it to become one of the Asia-Pacific region’s trillion-dollar economies by 2033.
Export earnings also surpassed pre-pandemic levels, with significant growth in overall exports and exports to Europe. The purchasing managers index, a measure of manufacturing activity, has consistently shown positive results, making the Philippines an attractive destination for manufacturing and industrial investments.
“Moreover, the Philippines is an ideal regional hub for sustainability, connectivity and innovation-driven manufacturing and services. We share common goals with the European Union in terms of science, technology, and innovation-led industrial policies,” Pascual said.