Domingo said Vietnam now had a foreign direct investment of $8 billion a year, four times more than the Philippines’ $2 billion.
“That is the country’s aspiration now. We believe we can achieve that with the right policies, right infrastructure and right governance,” Domingo said.
Domingo joined President Benigno Aquino III in the Asean Summit held in Hanoi, Vietnam last week.
“Much have happened in Vietnam over the past 12 years,” he said. “In terms of economic development, Vietnam has overtaken us already.”
He said the government should provide specific incentives to foreign investors to attract more funds.
He said the proposal of the Finance Department to abolish the income tax holidays to investors registered with the Board of Investments should be discussed.
“The proposed abolition of the ITH should be properly studied and discussed between the two agencies,” he said.
He said the government should offer other incentives that are competitive with the region in lieu of the tax holiday.
Domingo said the government should also find ways how to address power cost, peace and order, governance and infrastructure to steadily attract foreign investments in the country. He said power is a key component in production, especially electronics manufacturing.
Julito G. Rada