China group eyeing energy investments

MANILA, Philippines -  A Shanghai-based business group is eyeing investment opportunities in the Philippines particularly in the energy sector, the country’s trade department said.

In a statement, the Department of Trade and Industry (DTI) said the Wenzhou Chamber of Commerce of Fengxian  was recently in the country to get an overview of the Philippine investment environment and discuss possible business partnership opportunities with local companies.

The Wenzhou Chamber of Commerce of Fengxian is a non-profit community organization initiated by Wenzhou entrepreneurs in Fengxian District, Shanghai in China.

“Executives and representatives of business enterprises engaged in wire and cable, transformer, power transmission and distribution, intelligence equipment, textile, finance, real estate and other fields in the manufacturing industry comprised the business delegation to the Philippines,” the trade department said.

According to the DTI, the delegation was particularly looking for business opportunities in the energy sector to meet the expansion demand of its member enterprises.

“They are also considering investing and setting up factories in Asia with emphasis on the Philippines given its geographical advantages, lower labor cost, encouraging developments, as well as renewed bilateral relations with China,” the DTI said.

Ceferino Rodolfo, Trade Undersecretary for Industry Development and Board of Investments managing head, highlighted the country’s manufacturing sector, which posted impressive growth in the first semester.

He remains confident the country will outperform its Southeast Asian neighbors given the rosy business conditions in the country coupled with sound economic fundamentals and industrial policies and programs.

The Philippine manufacturing sector posted a 54.3 Purchasing Managers Index reading in May, up from 53.3 in April and the highest for the year.

The Philippines’ PMI is better compared to its neighbor countries such as Myanmar which registered a PMI reading of only 52 in May, Vietnam (51.6), Indonesia (50.6), Thailand (49.7), Malaysia (48.7), and Singapore (48.7).

A reading above 50 indicates improving business conditions and expansion while a reading below 50 indicates the opposite.

The BOI projects further growth for the manufacturing sector, with more high-impact, labor intensive, and socially-relevant manufacturing investment projects coming in.

“With the swift approval of the 2017 Investments Priorities Plan (IPP) which was designed to spread the benefits of the country’s fast economic growth to the countryside with emphasis on a broader segment of the manufacturing sector, innovation-driven, and job-generating businesses, we see a robust growth of manufacturing investment projects this year,” Rodolfo said.

In 2016, the manufacturing sector generated P49 billion, accounting for 11 percent of the total investments.

In the first four months, the sector reported a 158 percent jump with investments surging to P15.425 billion.

“Investments in the sector are expected to generate at least 3,038 in new jobs once these business projects are operational,” the BOI said.

The trade department said China remains a vital business partner for the country with significant contributions to the country’s economic growth.

Based on data from the Philippine Statistics Authority (PSA), China placed 14th in the list of top foreign investing countries in the Philippines with P1.52 billion poured in last year.