The Philippines is emerging as a prime investment destination in ASEAN for Chinese investors amid the Trump 2.0 trade policy which imposes a 20-percent tariff on imports from China, according to the Philippine Economic Zone Authority (PEZA).
PEZA recently joined Philippine-China investment meetings in Xiamen, Chongqing, Shenzhen and Dongguan, engaging with Chinese and multinational investors keen on relocating or expanding their operations in the Philippines.
“The week-long mission was organized in collaboration with the Bank of China [Philippine branch] and Aboitiz InfraCapital, along with the Philippine Trade and Investment Center and the Philippine Consulate General,” PEZA said.
One of the key developments from the mission was the Philippine expansion of TE Connectivity, a global leader in digital data network connectors and cables.
The PEZA board recently approved the company’s P1.7-billion investment in electro-optical components that will generate over 2,000 direct jobs and the expansion of its IT-BPM operations in the Philippines.
Other major companies such as the Aoxing Group, an original equipment manufacturer (OEM) for projector equipment and audio-visual products for global brands like HP, Epson and Skyworth, chose the Philippines for its redundant manufacturing facility catering to the US export market.
Aoxing and its supply chain partners are also set to join the upcoming China Chamber of International Commerce (CCOIC)-Dongguan delegation’s visit to the Philippines.
TCL, one of the world’s largest electronics producers and a leading wafer fab company for solar cells, is preparing to establish a pioneering technology production facility in the Philippines.
Existing PEZA locators including Bocheng Rubbers, Panhua Steel and HYS Metal Plastic also announced expansion plans.
PEZA said it continues to secure major commitments, including one of the world’s largest producers of vitamins and dietary supplements, a top global manufacturer of high-efficiency solar panels and a leading producer of TV monitors and projector screens.
Additional prospects include Hithium, a global leader in energy storage solutions, and Penyao, a Shanghai-based wastewater treatment company seeking local partners to deploy its technology in the Philippines.
Vietnam has long been the dominant “+1” in the China+1 strategy, benefiting from its shared border with China and strong infrastructure. However, the evolving landscape presents new opportunities for the Philippines to attract investments.