MAKATI CITY, PHILIPPINES — The Philippines showcases a robust economic stature as a premier investment destination for European investors, according to Department of Trade and Industry (DTI) Secretary Fred Pascual.

He made this statement during the 11th European-Philippine Business Dialogue hosted by the European Chamber of Commerce of the Philippines and the European Union-ASEAN Business Council (EU-ABC) on May 06. The dialogue aims to connect the European business sector with the Philippine government in providing a platform to foster mutual understanding on policy issues, ease of doing business, trade, and investments.

“In 2023, our gross domestic product (GDP) growth rate surged to 5.6%, outpacing several Asian countries. This growth puts us on track to become a USD one-trillion economy by 2033, establishing the Philippines as a significant global player,” said Secretary Pascual.

This year, the total investments approved by the Board of Investments (BOI) increased by 15% year-on-year, with significant growth in the renewable energy and information technology and business process management sectors. The Philippine Economic Zone Authority also reported a 19% increase in investment, particularly in manufacturing and expansion projects.

From L to R: Ambassador to the Delegation of the EU to the Philippines Luc Veron, DTI Secretary Fred Pascual, and European Chamber of Commerce of the Philippines President Paulo Duarte

President Ferdinand R. Marcos Jr.’s strategic initiatives have attracted promising investments and launched transformative reforms to improve the business climate, including the Corporate Recovery and Tax Incentives for Enterprises ­Act, along with amendments to the Foreign Investment Act, Retail Trade Liberalization Act, and Public Service Act.

Furthermore, credit rating firms like Moody’s and Fitch recognize the Philippines’ strong macroeconomic fundamentals that make it an attractive destination for investors seeking rich natural resources, young talented workforce, and a strategic location in Southeast Asia.

From L to R: EU-ABC Executive Director Chris Humphrey, DTI Secretary Fred Pascual, Ambassador to the Delegation of the EU to the Philippines Luc Veron, and European Chamber of Commerce of the Philippines President Paulo Duarte

Particularly, the country is poised to become a leading market in Southeast Asia’s electric vehicle (EV) market, with a niche in manufacturing light truck platforms and social-purpose vehicles as its neighbors have already gained a head start in four-wheeled EVs.

The Philippines also boasts a wealth of renewable energy sources, like geothermal, solar, hydropower, and wind, with the World Bank estimating it at 178 gigawatts. Given the EU’s preference for sustainable energy sources, the government established the Energy Virtual One-Stop-Shop (EVOSS) to streamline the permitting process for investors interested in energy projects.

To support the growth of these sectors, the country produces around 900,000 graduates a year, particularly in the technology and health sectors. The DTI is working closely with the education sector by boosting teachers’ training and upgrading the curricula to align them with industry needs.

Meanwhile, the national government calls for stronger collaboration with the EU on skills recognition, validation, and qualifications alignment—all aimed at strengthening education and training systems to better serve the needs of European businesses operating in the country.

Secretary Pascual also urged the EU businesses to explore opportunities in the Philippine agriculture sector as it accounts for around 9% of the GDP and employs nearly 24.4% of the country’s workforce in 2023.

“To seize these opportunities, the BOI is set to conduct a follow-through outbound mission to Europe for investment promotion with focus on key markets in Paris, London, and Berlin,” the DTI chief said as he announced plans to further economic ties with the EU countries. ♦

Date of release: 08 May 2024

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