Trade Secretary Gregory Domingo expressed optimism Thursday over the country’s economic growth prospects for 2012, noting that the Philippines is now in a “sweet spot,” which will allow it to grab a fair share of foreign investments flowing into member-nations of the Association of Southeast Asian Nations.
Speaking before members of industry groups and local and foreign chambers at the Arangkada Philippines Forum Thursday, Domingo said that his own growth forecast for gross domestic product this year is at least 7 percent.
“I think we’ll exceed 7 percent or even the 2010 growth of 7.6 percent. That’s not a pure guess—this is based on what’s happening,” Domingo said.
The Board of Investments (BoI), for example, raised its target for this year’s foreign direct investment inflows to a hefty $3.5 billion, from the estimated $1.7 billion FDI inflow last year, while local investments are targeted to reach P200 billion, according to the documents provided at the forum.
Exports by the semiconductor industry, Domingo disclosed, are also expected to soar this year.
The trade chief said that in a recent meeting with the Semiconductor and Electronic Industries in the Philippines Inc., members said that there is even a “good chance” that exports this year may reach the record high registered in 2010.
Domingo also said that his bullishness stemmed from key global developments, specifically citing the economic woes in the United States and Europe that are now driving more investors towards Asia.
He also said that some investors have suspended further investments in Vietnam—where a large portion of FDIs in the region are being directed—given its 20 percent inflation rate, Domingo said.
As for Thailand, the damage caused by the recent flooding in that country had prompted some of the investors to take their business elsewhere, namely Philippines and Indonesia.
And these inflows are now more evident, according to Domingo, who cited examples such as the establishment of a factory for Coach bags in Tarlac, which will be employing an initial 1,200 workers and Yokohama Tire Philippines’ expansion plans.
The Philippines is also already the fourth-biggest shipbuilding hub next to China, Korea and Japan.—Amy R. Remo