Board of Investments asks car firms to submit 5-year development plans

MANILA, Philippines - The government is asking local car manufacturers to submit a list of demands to ensure additional investment in auto assembly in the next five years.

The Board of Investments (BOI) said that they are waiting for car manufacturers to give them a list of what they need. The BOI is in the process of crafting the Motor Vehicle Development II (MVDP). This is a supplement to the Comprehensive MVDP.

The BOI said that the investments in the auto industry must be made within five years or else the Philippines will be left behind in terms of auto assembly.

Meanwhile, the BOI will not be able to meet the Aug. 31 deadline for the implementing rules and regulations (IRR) of the Comprehensive MVDP because auto importers led by Hyundai Asia Resources is asking the BOI to give them two weeks to give their input in the IRR.

Instead, the IRR will be ready by the second week of September.

BOI managing head Cristino L. Panlilio said they have agreed to give the Alliance of Vehicle Importers and Distributors (AVID) the two weeks that they were asking for. The members of AVID met with Panlilio last Friday. During the meeting they manifested that they would like to give recommendations on the IRR.

Panlilio said that the MVDP was not made for importers because it is mainly for car manufacturers and not importers. He said that the importers must go to the Department of Finance (DOF) because that is the agency that deals with importers.

AVID has written to President Aquino and Trade Secretary Gregory L. Domingo to ask for the revocation of the CMVDP or Executive Order 977-A because it favors manufacturers over importers.

In a letter to President Aquino dated July 2, the vehicle importers said that the CMVDP will favor locally manufactured vehicles versus imported vehicles.

 “The CMVDP, once implemented will discriminate against certain importations, contrary to our commitments under the World Trade Organization (WTO) which require that imported goods must be similarly treated as locally manufactured,” the letter said.

The letter was signed by Hyudai Asia Resources, CATS Motors, Inc., The Covenant Car Company, Inc., United Asia Automotive Group Inc, PGA Cars, Inc., Focus Ventures, Inc., and British United Automobiles, Inc.