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Tuesday, March 14, 2006
Japanese top foreign investors in Mindanao
KORONADAL CITY -- The total value of foreign direct investments in Mindanao for the first six months of last year reached P892 billion, making the Japanese as top investors, a document from the Mindanao Economic Development Council (Medco) showed.
The figure is 68 times higher than the P13 million for the same period in 2004, the document released just recently said.
Direct foreign investment for the first half of 2005 accounted for 54 percent share of the total investments, indicating growing foreign investor interest in Mindanao. Domestic investors constitute the other 46 percent for the period.
In January to June 2004, direct foreign investment to Mindanao was only three percent.
The foreign equity investments for the first half of 2005 surpassed local equity investments for the first time since 2001.
Local equity investments for the first half of 2005 showed a positive growth over the same period in 2004.
Local equity investments for the first half of 2005 increased by 74 percent to P771 million, up from P443 million for the same period in 2004.
The figures were based on data provided by the Board of Investments and the Phividec Industrial Estate.
On the foreign investments for the 2005 period, Japan accounted for 39 percent.
One of the projects with Japanese equity is the Philippine Sinter Corporation with investments valued at P520 million. The sintered iron ore manufacturing project is one of the largest overseas expansions of Kawasaki Steel Corporation in the Philippines.
It is located at Phividec Industrial Estate, Villanueva, Misamis Oriental.
Another project with Japanese equity infusion is the expansion project of Philippine-Japan Active Carbon (PJAC), producer and exporter of coconut shell-based granular activated carbon, valued at P125 million worth of investments.
PJAC was established in 1972 through joint venture between Futamura Chemical Industries Co. Ltd and Kowa Company Ltd with P107.3 million initial paid up capital.
The other top foreign direct investments for the first half of 2005 was the Canadian-owned mining firm TVI Resources Development Philippines, Inc. located in Zamboanga City with investment amounting to P225 million.
The project would generate 425 direct and indirect employments upon full operation. The company was earlier granted with a four-year income tax holiday that could be extended to seven years and a 10-year tax credit on raw materials and semi-manufactured supplies.
According to the Medco, the mining industry is expected to contribute heavily to Mindanao's investments inflows more so that the country's mineral investment plan is anchored on Mindanao where nearly half of the priority development projects of the mining sector are located.
Other foreign direct investments in Mindanao for the first half of 2005 include the South Korean-owned Dv Esplus Company Limited, manufacturer of automobile oil filters (P37 million); German-owned Biofaser Fibers Inc. manufacturer of coco coir products (P15 million); and the Taiwanese-owned Chenshin Corporation, producer of smoked fish (P10 million). (RBS)
For Bisaya stories from General Santos.Click here. (This section is updated every Monday)
(March 13, 2006 issue)
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