By Francessca S. Abalos
THE Philippines needs to improve its business climate and deepen international partnerships if it wants to accelerate industrialization and attract more investments, Nordic ambassadors said.
“Manila did not undergo a period of industrialization like its neighboring countries, and that has very much to do with its business climate,” Danish Ambassador Franz-Michael Mellbin told BusinessWorld on the sidelines of the Nordic Ambassadors’ Forum 2026 on Wednesday.
“If the Philippines improves doing business, you can also have an industrialization process in your country,” he added.
Mr. Mellbin said Denmark has been working with the Philippines in sectors such as shipbuilding, which could spur the growth of related industries and boost the country’s industrial base.
Industrial development often creates opportunities for secondary and tertiary industries, allowing economies to move up the value chain, he said.
One challenge facing the Philippines is the limited number of industrial niches still available to late entrants, Mr. Mellbin said, adding that the country would need to combine technology and manufacturing to establish a competitive advantage.
Kristian Netland, Norwegian ambassador to the Philippines, said international cooperation would also be critical because no country could efficiently produce everything it needs on its own.
Drawing from the experience of Nordic countries, he said cooperation among like-minded nations could help strengthen resilience during periods of crisis even when differences exist on specific issues.
Mr. Mellbin said the Philippines has struggled to industrialize partly because it remains behind regional peers in ease of doing business.
The Philippines has sought to attract more foreign investments, but business groups and analysts have pointed to political uncertainty, regulatory concerns, infrastructure bottlenecks and high production costs as obstacles to investment.
Without meaningful changes to the way the Philippines does business, there cannot be large-scale industrialization, Mr. Mellbin said.
He added that foreign direct investment should be viewed as a balancing act rather than a threat to national interests.
“For all countries there needs to be a balance because foreign direct investments can usually improve and strengthen your economy and your opportunities,” he said. “It’s balancing which areas you allow foreign direct investments to come in.”
Mr. Netland said concerns about sovereignty and foreign influence are not unique to the Philippines, adding that countries could mitigate risks by carefully choosing investment partners and protecting strategic sectors.