EU Wants to Double Investments in PHL in the next 5 yrs

The European Union (EU) delegation to the Philippines has urged EU companies to put in or expand investments in the country as it aims to double investments here in the next five years.

Guy Ledoux, Ambassador of EU Delegation to the Philippines, said in a forum on FDI in Bonifacio Global City Tuesday that the country has not yet seized a large value of EU investments.

“On average, over the last decade, the EU invested more than EUR 334 billion per year outside the EU. Of this, only EUR 384 million went to the Philippines, slightly more than one-tenth of a percent. This is marginal, also compared to what other ASEAN countries are receiving, namely EUR 12.6 billion per year.” Ledoux said.

“Increasing this share is our challenge, but also a great opportunity as there is so much FDI to attract which can help create more jobs,” he added.

He mentioned that this is also the best time for EU firms to invest in the Philippines with the country’s macroeconomic stability, robust gross domestic product (GDP) growth of 7.2 percent last year, reduced debt burden to 38 percent, investment grade ratings, and advancing in major global indices, among others.

”To me, this is a sign that the policies of President Aquino are working, not only economically but also politically,” the EU envoy said.

Ledoux stressed that it will be helpful for EU companies to decide on putting up investments in the Philippines if the country will ease restrictions to foreign investors.

He mentioned the revision of foreign investment negative list and liberalizing ownership limitations for key industries like retail, manpower recruitment, government procurement, as well as liberalization on financial services will further make the Philippines attractive to EU investors as well as other foreign companies.

The EU is the largest foreign investor in the Philippines with an estimated investment stock of EUR 7.6 billion in sectors of energy, manufacturing, logistics, financial, pharmaceutical, construction, and information and communications technology among others.

To date, there are around 600 European companies here which employed an estimated 400,000 Filipinos. (By Kris M. Crismundo (PNA) FPV/KMC)