Policy Row Threatens An Industry Already Playing Catch Up With Its Neighbours

The new Motor Vehicle Development Programme (MVDP), which aims to improve the Philippines' auto sector so it can compete with its regional neighbours, has divided the industry, with importers and assemblers disagreeing over its intentions. BMI forecasts average annual growth in vehicle production of just 3% in the Philippines from 2011 to 2014, compared with 7.5% in Thailand and 6.5% in Malaysia. The MVDP intends to attract investment to the local industry and increase exports, but importers believe it is to the detriment of their business.

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