The Philippines through the Department of Trade and Industry (DTI), through the Board of Investments (BOI), and Mizuho Bank, Ltd. have recently signed a Memorandum of Understanding (MOU) to continue bolstering their cooperation in promoting investments in the Philippines to Japanese investors.
Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo and Mizuho Bank Manila Branch General Manager Mr. Masaaki Wada led the signing ceremony of the said MOU at the BOI Main Office in Makati City on July 16, 2024.
Undersecretary Rodolfo underscored that Mizuho Bank has always been a trusted intermediary with Japanese companies. Notably, the MOU aims to strengthen their cooperation to promote investments through the conduct of investment seminars or missions, including business matching activities.
“BOI aims to continue partnering with Mizuho Bank in investment promotion initiatives, exchange of information support, and in conducting fruitful meetings not just in Japan but also in the Philippines,” Undersecretary Rodolfo said.
One of the notable and tangible outcomes of the partnership was Nitori Holdings Co., Ltd. (Nitori)’s investment in the Philippines. Known as Japan’s largest furniture and home furnishing chain, Nitori expanded its presence in the Philippines by opening its first store at Mitsukoshi BGC in Taguig City on April 18 this year. It will also open more stores within the year.
The successful entry of Nitori in the Philippine market was a result of BOI’s relentless investment promotion efforts during its outbound business mission in Japan in November 2022. In collaboration with its strategic partner, Mizuho Bank, the BOI pitched investment opportunities for the company in the Philippines, noting the recent liberalization of retail trade in the country.
“Mizuho Bank has been pivotal in our efforts to attract Japanese investors. This is exemplified by our collaboration with Nitori, which led to a project that will create jobs for Filipinos. This contributes to the success of our trade and investment relations with Japan, as most investments in equity capital placements originate from Japan. True enough, our collaboration with Mizuho Bank has been the catalyst for these investments,” said Undersecretary Rodolfo.
Undersecretary Rodolfo expressed his appreciation to Mizuho Bank Manila Branch for their unwavering support and participation in the investment promotion missions to Japan in collaboration with the BOI over the past years, most especially, for the quality leads that it has been arranging for one-on-one meetings for the BOI during its outbound business mission. He noted that at least three Japanese firms successfully established their presence in the Philippines as a result of these meetings.
Mizuho Bank was the first foreign bank to sign an MOU with the DTI-BOI for investment promotion cooperation in July 2017, which was renewed in 2019 with a longer validity period of five years. As off-shoots of the said MOUs, the DTI-BOI and Mizuho Bank collaborated in the conduct of three outbound business missions in December 2018, November 2022, and October 2023.
Established in 1995, Mizuho Bank, Ltd. – Manila Branch was granted an expanded universal banking license in 2009 by the BSP. It offers corporate banking services such as corporate/project finance; syndicated loans; trade settlement; deposit; remittance; foreign exchange; and financial advisory to major Japanese and Philippine companies.
Japan has consistently ranked among the top five sources of investment in the Philippines for several years. Following the pandemic, investment levels quickly rebounded in the subsequent years. In the latter part of 2023, approved investments from Japan totaled Php57.47 billion, marking a 10.56% increase from the previous year.
In the past five years, Japan has consistently shown interest in investing in manufacturing; real estate; electricity, gas, steam, and air conditioning supply; information and communication; and transportation and storage. Remarkably, the bulk of the approved Japanese investments in 2023 were recorded in the manufacturing sector.
In terms of FDI records of the Philippines, Japan had constantly been in the top two investing countries in the country from 2019 to 2023. Last year, Japan continued to hold its position as the leading investing country, with a total investment of USD 849.36 million, which translates to a 7.98% growth compared to the same period in 2022.
Based on the recent FDI report of Bangko Sentral ng Pilipinas (BSP), investments in equity and investment fund shares were at $149 million in April 2024. By source, investments in equity capital placements were mainly from Japan (47%), followed by the United States (21%), Malaysia (11%) and Singapore (9%).