The Philippine Board of Investments (BOI) has approved Ikea’s entry into the Philippines, following a bid from Ikano Ltd, the operator and franchise-rights owner of the Swedish furniture giant in Asia.
The ready-to-assemble furniture and appliance maker first mentioned it had plans to enter the Philippines as early as 2013, but has so far failed to do so.
According to BOI documents, Ikea has prequalified under the Retail Trade Liberalization Act of 2000 last November to open stores in the Asian market, as reported by Business Mirror.
All foreign retailers must have a net worth of either $200 million or $50 million, depending on its classification as a foreign retailer under the Act, before retail trade can commence.
The firm must also have five operating retail stores in other global locations or own at least one store worth $25 million, and a five-year track record in retailing, which Ikea does.
Ikea is also said to be registering with the Securities and Exchange Commission for its capitalisation requirement.
No further information on store locations or manufacturing has been revealed.
Speaking at a media roundtable held on the occasion of the 70th year of Sweden-Philippine Diplomatic Relations in March, the Swedish ambassador to the Philippines, Harald Fries confirmed in March that Ikea will be setting up in the Philippines soon, bringing employment to the region.
“There would be great opportunities for Filipinos to find work and there would be investment in putting up stores,” Fries said.
“I won’t be surprised that once they have set their camp here, they’ll be looking for local manufacturing. I think that would be wonderful and interesting for the Philippines,” Fries added.
Launching in 1943, Ikea — Ingvar Kamprad Elmtaryd was founded by 17-year-old Swede Ingvar Kamprad.
Ikano owns and operates home furnishing stores in South East Asia and under the franchise rights from the Swedish firm IKEA Systems BV. The company was incorporated in 1980 and is based in Singapore.
The BOI is an attached agency of Department of Trade and Industry (DTI). It is the lead government agency responsible for the promotion of investments in the Philippines.