Philippines, Hong Kong seal investment promotion agreement

MANILA, Philippines - The Philippines has forged a new agreement with the Hong Kong government to bolster investment cooperation between the two economies.

Officials from the Department of Trade and Industry (DTI) signed yesterday a memorandum of intent (MOI) with executives from InvestHK, the investment promotion agency of Hong Kong, pledging mutual cooperation on investment promotion exchanges and best practices.

“The Philippines and Hong Kong are close partners and we are here to further enhance our relationship for the mutual benefit of the two economies. The MOI will enable both parties to exchange information on investment environment and opportunities and also to share experiences in attracting foreign investment as well as best practices,” Hong Kong Secretary for Commerce and Economic Development Gregory So said.

So said the Philippines is an important market for Hong Kong as it its 17th largest trading partner, 16th largest market for domestic export, and 13th largest source of import as of last year.

Bilateral trade between both countries soared 18 percent in 2014 from the previous year.

With the newly signed cooperation agreement, So said trading between the two economies is expected to further intensify in the years to come.

“We both could leverage on the relative and comparative advantages of the other in our trading relationship to elevate it so we could be each other’s major trading partner,” So said.

“I am calling on both Hong Kong and Philippines to seize this opportunity to team up with one another and seize emerging market opportunities as Asia’s economy strives for economic growth,” he added.

As of 2014, Hong Kong is the Philippines’ sixth largest trading partner, fourth largest export market, and 13th largest source of import.

DTI Assistant Secretary for foreign trade services Maria Roseni Alvero said investments from Hong Kong that have qualified for investment incentives from Philippine government are currently among the biggest in the country.

Aside from strengthening investment promotion exchanges and best practices between the two countries, Alvero said the newly-forged agreement would also create better economic opportunities for local firms.

“It would provide a platform for encouraging interested local companies in setting up and expanding their businesses in both our economies,” she said.