DOF makes investment pitch to Mexico firms

MANILA, Philippines — The Department of Finance (DOF) has invited Mexico-based technology and manufacturing firms to invest in the country and possibly make the Philippines the center of their operations in Southeast Asia.

Finance Secretary Carlos Dominguez invited Mexican firms through Mexican Ambassador to the Philippines Gerardo Lozano Arredondo during a meeting to discuss ways of expanding economic relations between the Philippines and Mexico.

Dominguez said Mexican companies, particularly those in the technology and manufacturing sectors, could look into the Philippines as their entry point to gain access to the market of the Association of Southeast Asian Nations (Asean).

“We would like to invite you to come and invest here, probably for the Mexican companies to use Philippines as a base to enter the ASEAN market,” said Dominguez during the meeting.

“We will be happy to certainly host you here. As you know, the tariff rates among Asean countries is now low, In fact zero in most cases and this is an opportunity for your companies to come and set up manufacturing here,” he said.

In addition, the finance chief said Mexican firms could take advantage of the young labor force in the Philippines.

Lozano, for his part, agreed the Philippines could serve as “the door for Mexico” to enter the ASEAN market given the “excellent historical relations” between the two countries.

“We are trying to diversify our relations and we consider Asian countries as our very important option,” Lozano said.

The ambassador mentioned a series of consultations between Philippine and Mexican officials to be held in Mexico in March, which he said presents an opportunity for both countries to expand their political and economic ties.

“We are planning to invite some Philippine businessmen to join the delegation to come in order to meet Mexican businessmen and discuss opportunities for new businesses,” he said.

The 10 member-economies of the Asean region – the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam–in total has a market of 630 million, according to the DOF.

Citing World Bank data, the DOF said Mexico is now one of the top exporters of high-technology goods in Latin America, with $46.81 billion worth of high-technology exports in 2016.

Meanwhile, Dominguez also expressed gratitude to the Mexican government for hosting a team sent by the DOF to Mexico last year, which was tasked to study taxes on sugar-sweetened beverages.