THE Philippines has officially signed the Fifth Protocol to amend the Association of Southeast Asian Nations Comprehensive Investment Agreement (ACIA), acting Trade Secretary Cristina Roque said on Monday.

"This agreement makes it easier for investors to identify sectors open for investment in the Philippines," Roque told a media briefing. Other Asean member states signed the pact on September 16, while the Philippines formalized it on October 9 at the sidelines of the 44th and 45th Asean summits.

The protocol aims to create a more stable and predictable business environment which, in turn, enhances the country's viability for foreign investments, Trade Undersecretary Allan Gepty said, adding that the inclusion of a schedule of reservations would provide clarity on which sectors were open for investment, as well as those with market access restrictions or limitations.

"The ACIA sends a strong signal to the investment community of the country's readiness to serve as an investment hub in the region, especially for smart and sustainable manufacturing," Gepty noted.

The agreement shifts the ACIA reservation list from a single annex to two separate annexes. This includes provisions for reservations related to the Prohibition of Performance Requirements established under the Fourth Protocol, an expanded scope of the ACIA, and the application of a ratchet mechanism for certain member states. Roque said discussions during the summit also involved cooperation in key areas such as digital, green and blue economies.

Vietnam's VinFast, for instance, has shown interest in investing in the electric vehicle sector, Roque noted. Negotiations are ongoing for Malaysia's Capital A to expand its investments in the Philippines, Roque said, adding there are discussions as well with officials from Cambodia and Singapore on economic strategies and bilateral trade opportunities.

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