With its strong performance in the first half, the Board of Investments says it is on track to reach its PHP 1.6 trillion investment target for the whole year.

Fueled by investments in renewable energy, the Board of Investments (BOI), which is under the Department of Trade and Industry (DTI), reported a 65% rise in approved foreign and domestic investments as of the end of July at PHP 1.15 trillion (equivalent to $19.9 billion dollars) from PHP 699 billion in the same period last year.

The amount is on par with the Philippines’ neighbors, with Thailand reporting a 35% rise in foreign and domestic investment pledges for the first half (excluding July) at $12.8 billion, while Vietnam received $15.2 billion in foreign investment pledges alone for the first half of the year, a 13% improvement from the previous year.

The investments include the PHP 297 billion Pakil Pumped Storage Hydroelectric Power Project and the PHP 114.7 billion Guimaras Strait Offshore Wind Power Projects. These were further boosted by the recent approvals of a PHP 185 billion solar project with battery energy storage, a PHP 1.2 billion manufacturing and processing facility for biscuits, PHP 263 million-worth of solar rooftop projects, and a PHP 245 million activated carbon and charcoal production facility.

The BOI noted that the removal of nationality restrictions to just 40% foreign ownership on renewable energy projects, as well as the focus on sustainability, are attracting more foreign investments into the country.

“These investment approvals underscore our unwavering commitment to fostering a robust and dynamic economic environment”, outgoing Trade Secretary and BOI Chairman Fred Pascual said. “It has been an honor to contribute to this legacy of economic progress as I prepare to step down from my role,” he added.

With the substantial rise in investments, the agency is confident in hitting its PHP 1.6 trillion investment target for the whole year.

 “Our target is clear: to hit and even surpass PHP 1.6 trillion in approved investments this year. With the momentum we have built, we are confident in achieving and exceeding this goal, driving economic development,” emphasized BOI Managing Head and Undersecretary for Industry Development and Trade Promotion Group Ceferino Rodolfo.

Other foreign investments for the period include Hyundai Heavy Industries’ shipbuilding project with the Subic Bay Metropolitan Authority, Endec’s Hyperscaler Data Center, Taehiyo Cement’s modernized Cebu facility and FedEx’s expansion at Clark, Pampanga, which aims to transform the area into a premier logistics hub.

On the other hand, SteelAsia’s PHP 92 billion investment in steel mills, Mega Prime Foods’ facility in Batangas, and the Wawa Dam project which will supply over 710 million liters of water daily to Metro Manila and Rizal by 2025 are the notable domestic investments.

The investment pledges are estimated to create 27,000 additional jobs.

Coming from a global pandemic, the DTI says it aims to attract more investments by enhancing the ease of doing business by streamlining and digitalizing institutional and regulatory requirements, to speed up business processes, especially for strategic investments.

The Board of Investments is the Department of Trade and Industry’s one-stop shop for investors, assisting in business procedures and requirements, and providing tax incentives.