The Board of Investments (BOI) and one of Japan’s global banking institutions, Mizuho Bank Ltd., will continue its collaboration to facilitate further the entry of Japanese investments into the Philippines.

This was after Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo and Mizuho Bank Manila Branch General Manager Masaaki Wada recently sealed a memorandum of understanding at the BI Main Office in Makati City.

Rodolfo said Mizuho Bank has always been a trusted intermediary with Japanese companies.

He said 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,” Rodolfo noted.

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 18 April 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. 

He noted that at least three Japanese firms successfully established their presence in the Philippines as a result of these meetings. 

Undersecretary Rodolfo looks forward to another opportunity to work with Mizuho Bank for the upcoming BOI investments promotion mission to Japan in the last quarter of 2024 as well as other future cooperation.  

In response, Mizuho Bank’s Wada expressed his appreciation for the BOI’s collaboration with them, hoping for a stronger partnership with the renewed MOU. 

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.

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 P57.47 billion, marking a 10.56 percent 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 $849.36 million, which translates to a 7.98 percent growth compared to the same period in 2022.