Wal-Mart to enter Philippines

Wal-Mart to enter Philippines

MANILA (Dow Jones): Philippine Trade Secretary Manuel Roxas said Wednesday Wal-Mart Stores Inc. (WMT) has finally decided to invest in the country, the U.S. retailer's first investment in Asia.

"They're still negotiating with a potential local partner, but they are prepared to come in on their own," said Roxas, who accompanied Wal-Mart officials in their meeting with President Gloria Macapagal-Arroyo Monday.

Roxas said the government is hopeful of convincing Wal-Mart to invest in other sectors of the economy besides retailing, including establishing a regional headquarters in Manila.

Wal-Mart already buys some $60 million worth of Philippine products.

Wal-Mart will be the second major foreign retailer to invest in the country since the sector was openned to foreign investors last year.

U.S.-based membership-shopping warehouse operator PriceSmart Inc.is scheduled to open an outlet this year in the Philippines. This will be its third outlet in Asia.