Philippines attracts foreign direct investors as growth slips in China
Already six major companies from Japan and Taiwan have picked plant sites near Manila and officials hope these are just the beginning
The Philippines, a country historically overlooked by foreign investors, has seen the beginning of what could become a boom in factory projects as multinationals tire of rising costs and slowing economic growth in China.
Six major companies from Japan and Taiwan have already picked manufacturing sites near Manila following a government effort since 2010 to play up advantages such as English-language proficiency and a tariff-elimination deal with Europe, a government representative said.
All had located in China before but opted against expanding there as Manila pushed its self-described "China+1" strategy on them. Officials hope the new arrivals are just a start.
"Given the uncertainties in China, sometimes they have to have a backup facility," said Benedict Uy, a Philippine trade representative in Taipei.
Manila expects more investment from producers of consumer electronics, bicycles and processed foods, a boost to the Southeast Asian country's US$294 billion economy. Foreign direct investment in the country rose to 274 billion pesos (HK$48 billion) in 2013 from 173 billion pesos in 2004, government statistics show.
Investment bank Barclays forecasts its gross domestic product to grow more than 6 per cent next year, the third-fastest in Asia.