DTI expects net FDIs to rise by as much as 20%

MANILA, Philippines—The Department of Trade and Industry (DTI) expects the country’s net foreign direct investments (FDIs) to grow by as much as 20 percent this year from the $3.9 billion posted last year, as the Philippines continues to gain momentum with its strong economy and good governance measures.

Also driving this growth would be the increasing competitiveness situation in the Philippines and the increasing capability of the local workforce, Trade Secretary Gregory L. Domingo said on the sidelines of a forum on Tuesday.

“Now is the best time to invest in the Philippines. We have had tremendous economic growth, making us one of the fastest-growing middle-income (countries) next to China in this part of the world,” Domingo said.

“While exhibiting this fast economic growth, we’ve shown very decent inflation growth rate, and this combination makes a desirable economic situation wherein you have a stable business environment. We have also climbed in terms of our ratings in the competitiveness surveys. We were also upgraded in credit rankings by Fitch, Moody’s and Standard and Poors,” he added.

This heightened investor interest is evident particularly in the local manufacturing sector, which grew by 10 percent last year. The resurgence in manufacturing and continued fast growth of the service sector, specifically the IT-BPM sector, are seen to push the growth in net FDIs this year, the trade chief added.

“To be conservative, we just want to match last year’s growth rate [in terms of net FDI]. We are fortunate because the cost of [doing business in] neighboring countries is rising much faster than in the Philippines. We have a stable cost climate in terms of labor and inflation, so there’s an additional push to put investments in the Philippines,” he explained.