Follow Philippines Investment Immigration and Philippines Economic news: The Philippines plans to establish an automotive production center in the country, aiming to enhance transportation infrastructure such as roads, and may offer tax incentives to up to three automotive companies in the future.
Philippine President Benigno Aquino will sign documents to implement the "Comprehensive Automotive Resurgence Strategy program (CARS)." The country hopes to replicate Thailand's successful model to develop the automotive industry in the Philippines.
Data shows that in 2011, the automotive industry contributed 3.6% to the overall economy of the Philippines. Although the country has manufacturing capabilities in various fields such as medical devices, aerospace, and motorcycle parts, it still lacks medium-sized industries like automotive.
The Philippine government believes that the country's abundant labor resources and rapidly growing economic conditions will attract automotive companies such as Volkswagen to invest. To facilitate exports, President Aquino has significantly increased the budget for supporting infrastructure such as ports, roads, and airports, hoping to attract more foreign direct investment.
Rommel Gutierrez, a spokesperson for Toyota Motor Philippines, stated that government support is a crucial factor for future investments and factory expansions by automotive companies, and practical incentive programs will benefit both the government and businesses.
Philippine Trade Secretary Gregory Domingo stated that automotive companies must meet a certain production standard in the Philippines to qualify for subsidy incentives, although he has not disclosed the specific quantity at this time.
Automotive consulting and analysis firm IHS indicated that the Philippines "may no longer be competitive" for automotive companies, estimating that the country's light vehicle production will reach 90,000 units this year, while Thailand and Indonesia are expected to produce 2.14 million and 1.3 million units, respectively.
