MANILA, Philippines - Chinese investors have began lining up to invest in the country, with new projects worth at least $10 billion expected to be infused amid improved economic ties between the Philippines and China.
The Board of Investments (BOI) yesterday said five Chinese companies submitted their letters of intent to explore business opportunities in the country’s aviation, oil downstream, renewable energy, iron and steel, and shipbuilding/ship repair industries.
The Chinese firms are Aviation Industry Corp. of China International Aero-development Corp., Liaoning Bora Enterprise Group Co. Ltd., Huili Investment Fund Management Co. Ltd., Dalian Wanyang Heavy Industries Co., and YiDingTai (YDT) International.
BOI managing head Ceferino Rodolfo said all five companies would be entering the Philippine market for the first time.
Together, the planned projects of the Chinese firms are expected to generate at least 15,500 jobs for Filipinos.
“These projects are seen to further spur industrial development across the regions of the country including those in the countryside. At the same time, with more business activities happening, we also provide better and quality job opportunities for our countrymen,” Rodolfo said.
Huili Investment is looking to set up a $3 billion world-class integrated steel mill which will support the Philippines’ bid to be a major producer of high-quality and safe steel products by 2030.
The company intends to partner with the government and private sector entities to implement a two-phased project to realize a production output of three million metric tons of rolled steel and employ at least 6,000 by 2022.
Huili also plans to engage and train Filipinos to become specialists in the operation and management of the integrated steel mill.
Liaoning Bora and its Philippine partner, meanwhile, agreed on a joint venture in the construction and operation of a retail network, oil storage terminal, refinery projects, and allied industries in the Philippines worth $3 billion. The project will provide 3,000 jobs within two years from start of commercial operation.
Dalian Wanyang, for its part, is conducting feasibility studies for a 4,000 to 5,000 metric tons waste to energy gasification project that can generate up to 312 megawatts of power using solid waste collected from homes and businesses.
The project, which is estimated to cost $2.8 billion and employ at least 4,500 workers by 2022, is seen to be a partnership between the government and private sector entities.
YDT International, an affiliate company of Dalian Wanyang, has likewise chosen the country as its location for a shipbuilding and ship repair facility.
YDT, together with a Philippine company, is conducting feasibility studies on investing $1.5 billion in the facility.
Meanwhile, AVIC International, a state-owned enterprise in China focusing on the manufacture and provision of helicopters, aircraft and aviation related products, has yet to disclose investments for its planned project in the Philippines.
The BOI, however, said the firm is exploring opportunities in industrial cooperation for aerospace parts manufacturing, aviation maintenance and training.
The company also plans to cooperate with local partners on aerospace parts manufacturing, maintenance-repair-overhaul facilities and other industrial sectors.
“China remains a strong investment partner of the Philippines, and we are positive that these letter of intents will sustain the level of interests and open up more business opportunities for Chinese investors,” Trade Secretary Ramon Lopez said.
“Together with further building the competitiveness of our local industries and our intensive investment promotion efforts, international investors have gained greater awareness of our strong economy and the country’s competitive advantages,” Lopez added.
Approved investments from China from the country’s investments promotion agencies reached P1.52 billion in 2016