European firms prefer economic zones

Reducing red tape and business-friendly environment are key to attracting investments from the European Union (EU), according to Guy Ledoux, ambassador to the Philippines of the EU.

Some 289 European companies have invested in the country’s economic zones citing these areas’ good regulatory environment.

The latest one to invest is Danish firm Sonion which is employing 800 workers up to 2014 at its new factory at the First Philippine Industrial Park (FPIP) in Sto. Tomas, Batangas.

Ledoux said at the Sonion factory’s inauguration yesterday that EU firms are interested to invest in zones administered by the Philippine Economic Zone Authority (PEZA) because “many of the red tapes often hampering business development are lifted.”

“When looking at measures to be taken to attract more foreign investment in the Philippines, the regulatory environment offered in PEZA would provide a good guide,” he said.

Ledoux said European companies are very interested in the fast expanding Philippines market and welcome the objectives of reducing all the existing red tapes as well as encouraging local government unit to be business friendly and reduce the numerous permit that are often required.

The 289 EU firms in ecozones are  in a wide variety of sectors including food products, textiles, chemicals, precision and optical instruments, etc..

Ledoux said  European companies EU  is the largest investor in the Philippines with a stock of 7.6 billion Euros.

“The inauguration of this factory is a good illustration of the strong and growing economic relationship between the EU and the Philippines.

The remarkable example we have today, is not hot money invested by stock broker which can be withdrawn in a few days, this is an investment with a brick and mortar factory that demonstrates the confidence of the investor in the Philippines government and the quality and reliability of the Philippines workers. We have here a state of the art factory in a high tech sector that will manufacture sophisticated equipment that will be exported all over the world,” Ledoux said.

source:  Malaya