Trade and Investment Opportunities in the Philippines CRISTINO L. - - PowerPoint PPT Presentation

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Trade and Investment Opportunities in the Philippines CRISTINO L. - - PowerPoint PPT Presentation

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Trade and Investment Opportunities in the Philippines CRISTINO L. PANLILIO Undersecretary Department of Trade and Industry 20 th CREBA National Convention Marriot Hotel Manila Newport Complex, Pasay City 07 October 2011 Snapshots of the

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CRISTINO L. PANLILIO Undersecretary Department of Trade and Industry

20th CREBA National Convention Marriot Hotel Manila Newport Complex, Pasay City 07 October 2011

Trade and Investment Opportunities in the Philippines

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SLIDE 2

Source: NSCB

4.8 5.2 6.6 4.2 1.1 7.8

1 2 3 4 5 6 7 8 50 100 150 200 250 2005 2006 2007 2008 2009 2010

Philippine GDP 2005 - 2010

Current GDP (US$ B) Real GDP Growth Rate (%)

Snapshots of the Philippine Economy

2010: Fastest economic expansion since 1986

  • GDP up 7.8% in 2010
  • Ave. inflation, 3.8%
  • Exports up 34%
  • US$12 B IPA-approved

Investments

  • Q1 2011 GDP up 4.9%
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$41.3 $47.4 $50.5 $49.1 $35.1 $51.5 4.0% 14.9% 6.4%

  • 2.8%
  • 28.5%

34.0%

0.000 10.000 20.000 30.000 40.000 50.000 60.000 2005 2006 2007 2008 2009 2010

Amount in US$ B Growth Rate (%)

PH Merchandise Exports Performance, 2005-2010

(Value in US$ Billions, Growth Rate in %)

Expanding Exports

  • Exports Jan – June 2011: US$24.7 B, ↑ 4.1%
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SLIDE 4

Expanding Exports in 2010

Electronics 60.4 Articles of apparel & clothing accessories, 3.3 Coconut oil 2.5 Woodcrafts & furniture, 2.3 Ignition wiring set &

  • ther wiring sets, 2.2

Others

1 JAPAN 7.841 2 USA 7.559 CHINA 5.724 HK 4.334 SINGAPORE 7.319 5 3 Total PH Exports 51.50 4 PH’s Top Export Markets, 2010 In US$ Billion PHs Top Commodity Exports, 2010 In % Share

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Total IPA – Approved Investments, 2005 – 2010

(Value in US$ Billions)

Source: FDI Quarterly Reports, NSCB

  • 2010 total approved investments: US$12 B, ↑ 82%
  • Jan-June 2011 BOI–PEZA approved investments: US$6.6 B, ↑ 24%

4.2 7.0 8.4 10.4 6.6 12.0 0.0 5.0 10.0 15.0 2005 2006 2007 2008 2009 2010

Increasing Investments

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SLIDE 6

Large Competent Labor Pool World-class Ecozones Strategic Location

  • 35.92 M labor force
  • 92.3% Literacy rate
  • 76% Fluency in English
  • 469,654 College grads

94,278 IT/Engineering 106,746 Business-related 128,057 Medical & Allied Sciences

Our Competitive Advantage

Robust Telecom Infra

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SLIDE 7

Growth Industries

Electronics Agribusiness BPO/Call Centers/IT Design Industry Housing Shipbuilding/Heavy Industries Tourism Mining

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T O U R I S M GROWTH Industry

  • 36,289 km coastline – “Asia’s Beach Capital”
  • Most diverse marine species in the world
  • Incentives for investments under Tourism Act of 2009

URBAN LEISURE CULTURE PALAWAN BANAUE HISTORICAL BORACAY BOHOL ADVENTURE

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SLIDE 9

9

2011 IPP: Theme, Goal & Objectives

THEME:

“A New Day for Investments: Coherent, Consistent and Creative”

OBJECTIVES:

  • Enhance public-private partnerships
  • Maximize

the

  • pportunities

from the implementation of free trade agreements (FTAs)

  • Strengthen the country’s global competitiveness
  • Support MSMEs
  • Promote a green economy

GOAL:

“More investments, more jobs”

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10

TOURISM

  • Tourist Transport
  • Tourism-related facilities
  • Retirement Village

2011 IPP Preferred Activity

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  • Tourist Transport
  • Brand

new, world-class buses and/or mini- buses/coasters.

  • Proportional number of imported transport service

(Allowed No. of vehicles shall be based on tourist arrivals in the

area or the ratio of hotel/resort facilities/rooms)

  • Only Duty Free for Quality transport

11

TOURISM

2011 IPP Preferred Activity

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  • Tourism-related facilities
  • 1. Accommodation Facilities (including

convention/exhibition, agri-tourism farms and facilities)

  • Service apartment/condotels need not be exclusively for

tourist

  • Tighter modernization coverage
  • Proportional number of imported transport service
  • Pioneer Agri/Eco Tourism now 20 hectares down from 50

hectares

  • 2. Health and Wellness
  • 3. Tourism Training Centers and Institutes

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TOURISM

2011 IPP Preferred Activity

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  • Retirement Village
  • Minimum area of twenty (20) hectares

may qualify for pioneer status

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TOURISM

2011 IPP Preferred Activity

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INCENTIVE Executive Order No. 226, as amended Income Tax Holiday (ITH) 4 – 6 years (max of 8 years) ITH Bonus 3 years provided the firm meets certain conditions Importation of Capital Equipment, Spare Parts and Supplies Duty-free Wharfage Dues and Export Tax, Duty, Impost and Fees Exempted Simplification of Customs Procedures Available Employment of Foreign Nationals

  • Foreign nationals may be employed in supervisory, technical or advisory positions

within 5 years from a project’s registration, extendible for limited periods. The positions of president, general manager, and treasurer or their equivalents, of foreign-owned registered firms may be retained by foreign nationals for a longer period.

  • All foreign employees may bring with them their spouses and unmarried children

under 21 years of age.

BOI Investment Incentives

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SLIDE 15

GROWTH Industry

  • PH’s top dollar earner and top export product
  • US$31.1 B or 61% of total exports in 2010
  • US$2.27 B IPA-approved investments in 2010
  • 500,000 direct employment in 2010

E L E C T R O N I C S

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HOME TO GLOBAL BRANDS

SEIPI

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B P O/ Call Center/ IT

GROWTH Industry

  • Call center capital of the world
  • “Off Shoring Destination of the Year” in 2008-2010

by UK NOA

  • 15 - 25% annual industry growth
  • 600,000 direct employment
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HOME TO THE BEST GLOBAL COMPANIES

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AGRIBUSINESS GROWTH Industry

  • PH is 47% Agricultural Land
  • Opportunities in post-harvest facilities such as cold

chain facility

  • 36,289 coastline
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Large-scale Company

  • 23,000 ha. pineapple plantation
  • 700,000-ton processing

capacity

  • Port beside the Cannery
  • Operates the world’s largest

fully-integrated pineapple

  • peration
  • 85 years of pineapple growing

and processing

DEL MONTE PHILIPPINES

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SHIPBUILDING / HEAVY INDUSTRIES

  • PH, 4th largest shipbuilder in the world
  • Produces ships of large tonnage capacities

(480,000 dwt)

  • Readily available skilled manpower

63,000 welders 50,000 engineering & architectural graduates 27,688 skilled/semi-skilled workers 5,096 technical personnel 2,370 managerial personnel

GROWTH Industry

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HANJIN

  • Established in 2006 with US$1.8 B investments
  • Employs around 20,000 employees
  • Manufactures ships from 175,000 dwt to 320,000 dwt

H A N J I N Heavy Industries Co. (HHIC) Phils., Inc.

Source: www.hhic-phil.com

Large-scale Company

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TSUNEISHI

T S U N E I S H I Heavy Industries (Cebu), Inc.

  • Builds merchant ships up to 180,000 dwt
  • Engages in shipbuilding, ship repair and manufacturing of
  • utfittings, engineering & fabrication services, conversion

services for foreign and PH clients

Source: www.newsflash.org

Large-scale Company

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SLIDE 24
  • Filipino-based modular manufacturing units allow

clients to execute critical projects world-wide, reducing on-site labor costs by up to 80%; clients reduce local sourcing and construction risk enabling them to implement high-quality projects anywhere in the world with far less volatility

A G & P Large-scale Company

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SLIDE 25

D E S I G N - based Industry

SEIPI SEIPI

Sources: BETP, Manila FAME International

GROWTH Industry

Export Value in US$ Millions 2010 Jan-June 2011 Textile, Apparel, Footwear & Travel Goods 1,950 1,035 Woodcraft & Furniture 1,181 850

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DESIGN-based Industry

The “Phoenix”

SEIPI SEIPI

  • The 1st and only bamboo and rattan car in the world

designed by Kenneth Cobonpue

  • Main feature in the “Imagination & Innovation Exhibit” in

Via Tortona in Milan, Italy held in February 2011

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M I N I N G

Chamber of Mines of the Philippines Philex Mining Corp.

GROWTH Industry

  • 5th most mineralized country
  • Located at the “Ring of Fire”
  • 2nd in gold; 4th in copper; 5th in nickel; 6th in chromite
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SLIDE 28

Public-Private Partnership:

Cornerstone Strategy of National Development

NAIA Expressway Projects for Rollout 2011

  • NAIA Expressway Phase 2
  • Daang Hari-SLEX Link Road
  • MRT-LRT Expansion Program
  • NLEX-SLEX Connector
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DTI Initiatives

  • Power Cost
  • Red Tape
  • Business Name Registration System (BNRS)
  • Philippine Business Registry (PBR)
  • SEC Land Bank Registration
  • Business Permit Licensing System (BPLS)
  • Corruption
  • 1. Providing Better Business Environment
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DTI Initiatives

  • Packaging and Design Assistance
  • Doing Business in Free Trade Areas (DBFTA)
  • Tindahang Pinoy
  • SME Caravan
  • One-Town One-Product (OTOP)
  • Trade Fairs
  • Shared Services Center
  • 2. Enhancing SME Capability
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Prospects and Outlook

  • 10% merchandise and

16% service exports growth for 2011-2013

  • 15% investment growth

for 2011 & 2012

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Pledge to Business

“We will make our nation very desirable to business. We will cut red tape dramatically and implement stable economic policies. We will level the playing field for investors and make government an enabler, not a hindrance, to business.”

President Benigno S. Aquino III

Photo by: Pat Hocchuan www.filglobe.com