The Department of Trade and Industry (DTI) said it will try to match this year the record $10.5 billion foreign direct investments (FDI) registered by the Philippines in 2021.

“That’s what we are aspiring for,” said DTI Secretary Alfredo E. Pascual during a television interview when asked if the 2021 FDI, the country’s highest recorded FDI inflow, can be matched this year.  From  a record high in 2021, the country’s FDI slowed down to $9.2 billion in 2022.

The DTI chief’s aspiration for a repeat of the 2021 all-time high FDI is largely anchored on the agency’s bullish investment growth target for the year. The Board of Investments (BOI), DTI’s investment arm, was originally projecting for P1 trillion FDI target this year, but raised the goal to P1.5 trillion after hitting a quarter of its target.

According to Pascual, FDIs this year would be driven largely by investments in renewable energy projects boosted by the revised Implementing Rules and Regulations of the RE Act.  The amendment removes the nationality restrictions on the exploration, development, and utilization of renewable energy resources such as solar, wind, biomass, ocean or tidal energy.

Other laws that are expected to help encourage foreign investments to the Philippines include the Revised Trade Liberalization Act, Foreign Investments Act, and Public Service Act.

In addition, Pascual cited the issuance of Executive 18 providing a green lane in the processing of documents for investments in strategic industries from the national level down to the local government units. Pascual said this is part of the government’s efforts at further easing doing business in the country.

The BOI is not just the main source of new FDI but project registration from other investment promotion agencies as well, such as the Philippine Economic Zone Authority, Bases Conversion and Development Authority, Clark Special Economic Zone and Freeport, other special ecozones and freeports of the government.

In  terms of nationality, the Pascual expects electronics and electric vehicle projects from the US. He also expressed strong optimism about Chinese projects to finally materialize in the third quarter if not second quarter this year.

With the entry of US firm Cerberus for the bankrupt Hanjin shipyard in Subic Freeport, the DTI chief expects the US firm to pursue further developments in the country.
He noted of US telecommunications firms relocating out of China, including subsea cable projects to the Philippines, benefitting hyperscalers and data centers. He expressed hope for global logistics firm FedEx, which operates one of its hubs in Clark, to further expand its operations.

The most likely to expand in the country are those existing foreign investors in the country, the likes of Procter & Gamble that expanded its diaper manufacturing line for exports. Procter & Gamble (P&G), the world’s leading consumer goods company, completed its a new diaper manufacturing line worth P864 million to expand production capacity at its current facility in Cabuyao, Laguna for export to South Korea and Vietnam. The Pampers Pull-up Pants line is P&G Philippines’ biggest of three expansion projects in the country for 2022-2023. It is also one of the most advanced manufacturing lines for P&G in Asia.

“We have our selling points,” he said reiterating the country’s strategic location in the region, a huge consumer population, and a very young and dynamic workforce. Thus, he called for the need to upskill and reskill students to attune to the skills needed by industries and the digital economy.
The Regional Comprehensive Economic Partnership (RCEP), which will take effect on June 2 this year, is also expected to help boost the country’s attractiveness as an investment destination.

Earlier Pascual highlighted some concessions the Philippines got from partner countries such as China, South Korea and Japan.