Creation of FDI facilitation office sought

Two Mindanao congressmen are seeking the creation of an office that would facilitate the entry of foreign direct investments ( FDIs) into the country.

Cagayan de Oro City Rep. Rufus Rodriguez and his brother Maximo, who represents party- list group Abante Mindanao, have filed a bill proposing the creation of the Office for Investor Facilitation and Protection (OIFP).

“Bureaucratic red tape and other problems must be addressed soonest if the country hopes to be competitive in attracting foreign direct investments,” Cagayan de Oro City’s Rodriguez said.

“A NEDA ( National Economic and Development Authority) study showed that applying for a business permit in the country involves a long, tedious and difficult process – an average of 15 procedures – and takes at least 38 days,” he said.

The proposed FDI facilitation office would be under the Office of the President.

It would act as a coordinator and integrator for the investor, implementing agencies and all other related government offices or department with respect to business registration, permits, clearances and endorsements.

Rodriguez said the country needs more FDIs to attain inclusive economic growth.

“FDIs drive economic productivity – create jobs, raise income levels and transfer production technology and innovative capacity, as well as create access to international marketing networks,” he said.

“In fact, the government has launched investment incentives programs administered by 13 implementing agencies for the purpose of attracting domestic and foreign direct investments,” he said.

He said the agencies are Philippine Economic Zone Authority, Bases Conversion Development Authority, Subic Bay Metropolitan Authority, Clark Development Corp., Poro Point Management Corp., Bataan Technology Park Inc., Cagayan Economic Zone Authority, Zamboanga City Special Economic Zone Authority, Phividec Industrial Estate, Aurora Pacific Economic and Freeport Zone, Bataan Freeport Authority and Tourism Infrastructure and Enterprise Zone Authority.

Despite the efforts of these agencies, Rodriguez said the Philippines still lags behind its Southeast Asian neighbors in terms of attracting foreign direct investments.

“Vietnam is way ahead of us in terms of FDIs. We will have to work hard and perhaps double our efforts to gain more foreign investments,” he said.

He noted that in a study conducted by the World Bank with the International Finance Corp. in 2013, the Philippines ranked 138th out of 185 economies in terms of ease of doing business.

According to the World Bank study, the five criteria where the Philippines ranked low were in starting a business, registration of property, paying taxes, getting credit and protecting investors.

“There is thus a need to create a government agency/ office that can assist in the expeditious facilitation of business investment registration and permits requirements, and efficient process for investors to avail of the investment incentives programs of the government,” Rodriguez said.