European Chamber expects investor interest to remain

May 05, 2020 News

European investors in Davao Region and Mindanao will likely remain  but will have to wait until the coronavirus pandemic is over and  business returns to normalcy.

European Chamber of Commerce of the Philippines (ECCP) Southern  Mindanao Business Council chair Antonio Peralta said he sees bright  prospects when European Union Trade Attaches are set to visit Davao City  in the next two years.

Peralta said there was a planned visit of Trade Attaches from  different countries in the European Union (EU) in Davao last March 30  but was cancelled due to the Covid-19 pandemic and the implementation of  travel restrictions.

“This planned activity will be revisited in the next two years when the situation normalizes,” he said.

Peralta said aggressive investment promotion efforts for Davao Region  and Mindanao must also continue to remain as relevant investment  destinations. “Thailand and Vietnam presently continue to be aggressive  in the pursuit of new business locators in their countries.”

There are European companies that have explored business opportunities in Mindanao more specifically in Davao Region.

A French company, Biogrow Substrates Philippines, has expressed  interest to establish a coco peat production facility in Davao del Sur  and signed initial agreements during the Davao City Investment  Conference (ICON) in June last year.

Peralta said the company, with facilities based in France, Sri Lanka,  and India, is now waiting for the lifting of ECQ in Davao Region to  pursue its plan of establishing a processing facility for export to  Europe and other countries.

Coco peat is used to form briquettes for bedding plants and growing flowers, vegetables and fruits.

Peralta said Biogrow expressed optimism on the opening of its  facility despite the occurrence of COVID-19 and see this situation as  temporary and eventually will be resolved by pharmaceutical companies.

He also mentioned that a Swedish company recently bought a majority  interest in a local Business Process Outsourcing (BPO) company in Davao.  

European investors have set up business and shops in Davao and  Mindanao and these are companies engaged in the business of  agri-business, travel agency, specialty coffee and restaurants.

European consumer durables and automotive vehicles are already in the  Davao City automotive market through distributorship and dealership  agreements with local companies.

By Maya Padillo

Source: Edge Davao