THE Philippine Economic Zone Authority (PEZA) said some Chinese companies have expressed interest in expanding current operations or locating in the Philippines.
“PEZA has received numerous inquiries lately, and we see the same sentiments coming from the companies we met in Shenzhen,” PEZA Director General Tereso O. Panga said in a statement on Thursday.
“Surely, this is the best time for the Philippines to host their operations, and we in PEZA assure that with the President at the forefront of this move, we will make it happen in the Philippines,” he added.
PEZA participated in a three-day investment mission organized by the Philippine Consulate General in Guangzhou and the American Chamber of Commerce in South China in partnership with the Philippine Trade and Investment Center (PTIC) in Guangzhou.
PEZA participated in a business forum and business-to-business (B2B) meetings during the event.
“Apart from the forum, PTIC Guangzhou also organized B2B meetings for the PEZA team to meet with companies interested in transferring their operations to the Philippines due to its proximity to China and the impact of the US-China trade war, among many other reasons,” PEZA said.
“These companies are into medical device manufacturing, garments, e-commerce, and electronics sectors and are yet to make any concrete decisions as they are still in the exploratory phase,” it added.
PEZA also conducted a facility tour with Shenzhen Grandsun Electronic Co., Ltd. which has a unit currently operating at the Lima Technology Center in Batangas.
“Grandsun reaffirmed its commitment to expanding operations in the Philippines in the coming years, with plans to bring their whole supply chain to the country and eventually manufacture their full product line domestically,” it said.
Meanwhile, PEZA also met with the China Chamber of International Commerce (CCOIC) Dongguan to discuss collaboration with Dongguan’s business community.
“Noteworthy, some members of CCOIC have conducted an exploratory business mission to the Philippines on April 25-26 to learn more about the business environment of the Philippines and to visit selected ecozones in Laguna and Batangas,” PEZA said.
PEZA said that it is bullish on the entry of multinational companies, especially those with operations in China.
“With the growing interest in the Philippines as the new ‘plus one’ preferred destination in ASEAN by relocating companies from China, we are confident that we can do a quick turnover and welcome these companies as new locators,” said Mr. Panga.
“We must not further delay the relocation of these companies from China to the Philippines in order to secure our position in this evolving regional market.”
According to PEZA, China remains one of the country’s top investment partners, accounting for 22% of total foreign investments.
Within economic zones, Chinese companies accounted for $406 million in exports and 16,000 jobs.
PEZA has achieved 24% of its approval target for the year, after greenlighting P66.34 billion worth of investment pledges in the first five months.
These investments feature companies from South Korea, the US, China, Japan, and the Netherlands.
“As the global business landscape shifts under the China+2 strategy, the Philippines stands ready to serve as a strategic partner in enhancing regional resilience,” Mr. Panga said.
“Through stronger economic ties with China, PEZA is committed to fostering mutual prosperity, fortifying supply chains, and creating a more agile and sustainable investment ecosystem in Asia,” he added. — Justine Irish D. Tabile