Philippines lags behind in attracting FDIs

CEBU, Philippines — The Philippines must move to attract more foreign direct investments (FDIs) as it continues to lag behind its neighbors like Vietnam, a foreign business leader said.

In a press conference in Cebu City on Tuesday, European Chamber of Commerce of the Philippines (ECCP) president Nabil Francis pointed out the Philippines has not attracted so much FDIs despite its robust economic growth in recent years.

Francis said the Philippines still needs to work harder to make it easier for foreign businesses to invest in the country.

He cited the need to level the playing field and push further for ease of doing business as among the areas the country should continue to work on.

Francis noted he sees a very high potential for the Philippines to lure more FDIs especially coming from European Union nations.

The approval of the Ease of Doing Business Act, he said, should also attract FDIs into the country.

The government has yet to release the implementing rules and regulations (IRR) of the new law.

In the same interview, ECCP executive director Florian Gottein said the business group wants the government to keep the incentives especially for existing investors under its corporate tax reform.

The government’s Trabaho (Tax Reform for Attracting Better and Higher Quality Opportunities) bill proposes incentives for investments included in the country’s Strategic Investment Priorities Plan.

Francis, for his part, said he believes the tax reform is generally is supposed to go to the "right direction" but he urges the government not to make uncertainty.

"We are advocating for keeping the incentives. It's also not right to create uncertainty," he said.

According to Gottein, the rationalizing incentives should only cover the new investments, noting the incentives are among the factors considered by foreign companies when deciding to invest in the country.

He further pointed out that the country must also continue to invest more on infrastructure and lower down electricity costs to attract investments.