THE Philippines will be sending a business mission to Taiwan on Thursday, in a bid to increase trade and investments between the two sides.
Manila Economic and Cultural Office (Meco) Director Lito Banayo said Trade Secretary Ramon M. Lopez will be leading a business contingent to Taiwan, as the neighboring country ushers a new southbound policy that calls for more focus on its Asean neighbors as trading partners and investment destinations.
“We are bringing together the business community of both Taiwan and the Philippines to discuss further business opportunities and investment flows. It is quite important, considering their president has a new southbound policy,” Banayo said.
He also believes the business mission does not in any way violate the One China policy of the People’s Republic of China.
“Our dealing with Taiwan is as an economy not as a country, so the relationships are economic in nature and also cultural,” Banayo said.
During her inaugural address in May, Taiwan President Tsai Ing-wen announced the government’s new southbound policy, which aims to strengthen exchanges in the areas of technology, culture and commerce with Asean countries, along with India, Australia and New Zealand.
Philippine Statistics Authority data showed that Taiwan is the Philippines’s seventh major trading partner, with total trade of $653 million during the second quarter alone.
Imports from Taiwan in August declined by 25 percent to $463.89 million, from $624.49 million during the same period last year, while Philippine exports were up 20 percent to $189.61 million.
Meanwhile, Taiwanese investments to the Philippines grew exponentially to P426 million during the first quarter of the year, from P9.70 million, as compared to the same period last year. Taiwan’s share in the total approved foreign investments in the country stands at 1.60 percent.
The new Meco chief said Taiwan continues to play an important role as an export destination of Philippine products, including computer parts, chemicals and plastic materials. He also added that Taiwanese companies are very active in the country’s export-processing zones.
Banayo said the Philippines’s proximity to Taiwan offers a big opportunity for investments coming to the country. However, he cautioned that other Asean countries will also be looking at having sizable investments from Taiwan companies.
“Their new southbound policy is not exclusive to us. They would also like to talk to Indonesia, India, Vietnam and other Asean countries for that matter. But we hope that, because of our proximity, we will be able to get a big chunk of investment flows coming from Taiwan,” Banayo said.
Image credits: Stephanie Tumampos
