Chinese investors still keen on PH
The Duterte administration “continues to enjoy the confidence of foreign direct investors” after two large Chinese investors reiterated their interest to invest a combined $4.5 billion in the Philippines.
The Board of Investments said in a statement Monday that Chinese firms Huili Investment Fund Management Co., Ltd. and Yi Ding Tai International Corp. again expressed their interest to set up shop in the Philippines.
The Chinese companies were among the five firms that submitted letters of intent to BOI earlier this year.
The projects, however, have not yet been filed as investment pledges with the BOI.
Both companies are still conducting feasibility studies, the BOI said.
The two companies are interested in iron and steel manufacturing as well as shipbuilding.
BOI said the projects had the potential to create around 8,000 new jobs.
Beijing-based private equity firm Huili Fund outlined plans to locate its $3-billion project in the country in a letter of intent signed earlier this year and endorsed by China’s Ministry of Commerce, BOI said.
The project is a world-class integrated steel manufacturing facility that will employ 6,000 people by 2022.
Company Chair Meng Xiaosu paid a courtesy call to BOI Chair and Trade Secretary Ramon Lopez on Oct. 5.
During the meeting, BOI said the company official said the first phase would include production of billets, long, and flat products. The chain will then be completed in the second phase through the production of iron ore.
BOI said the company was in the middle of a feasibility study, which includes scouting for a possible location for the facility, putting into consideration the availability of port and low electricity costs.
“This is one of several investment proposals we have received on the steel
industry that will allow us to pursue President Duterte’s vision of having a globally competitive iron and steel industry, to support the growing economy, to alleviate poverty, and to create jobs for every Filipino,” Lopez said in a statement.
According to BOI, Mr. Xiaosu said putting up a facility in the Philippines would help regional expansion while reaching out to other countries in the Association of Southeast Asian Nations (Asean) with lower freight cost.
On the other hand, the BOI said that Yi Ding Tai International Corp. had picked the Philippines as the “best location” for developing a shipbuilding and ship repair (SBSR) facility for frontier-island, regional size vessels with 15,000 deadweight tons, including advanced ship and vessel designing, manufacturing, repair, sales, and financial support.
The company would partner with a local player for the project with an estimated cost of $1.5 billion. The facility will add at least 2,000 jobs by 2022.