Doing Business in Ph Guidebook
Business and Investment Guidelines in the Philippines
Economic Profile of the Philippines
The Philippines is an archipelagic state, it comprises of 7,107 islands. Philippines have a vast amount of natural resources. The Philippines is also covered by a huge body of waters which hugely contributes to the annual income of the country. This gives the Philippines tons of opportunities to use it as an investment and source of emerging market and businesses.
In the first quarter of 2014, Philippines have earned a 6.0% GDP growth rate and in the second quarter it has reached up to 6.4% growth rate. It is evident that the Philippine Economy is stable and continues to grow. Export commodities of Philippines are mainly semiconductors and electric products, transport equipment, garments, copper products, petroleum products, coconut oil, agricultural products, crops and fruits. Total exports earned with the amount of 47.45 billion US dollars as of 2013. The top Import commodities of the Philippines are electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic. Total expenditure of the Philippines for the imports reached with the amount of 63.91 billion US dollars.
(Source: The World Bank)
Trade Data of the Philippines
(In Million US dollars)
(as of 2013)
(Source: Board of Investment Philippines)
The food products of New Zealand and Australia are one of the largest food and beverages import commodities of the Philippines, such as agricultural products, meat and functional foods like dairy products.
Information, Communication and Technology
The Philippines is a prospect with it comes to Information, Communication and Technology (ITC). Establishing businesses in line with ITC can provide vast amount of investments since it will be an urgency for the companies to upgrade and develop their services.
The emerging local airlines in the Philippines are rapidly growing. It is an opportunity to provide aircraft services to the country since it lacks good quality of sources that can be use as part of aircraft materials. In addition, aircraft materials are one of the top imports of the Philippines.
As the Philippine economy develops there’s a need to supply the demands of the country on energy despite of its growing economy. Providing technologies and innovations as a source of renewable energy will be beneficial to the supplier since one of the Asia’s highest consumers of renewable energy is the Philippines. Renewable energy sources of Philippines are mainly coming from hydroelectricity and geothermal. Administering new safety procedure and apparatus for repair, enhancing and developing the renewable energy source can be a factor to establish investments in the country.
Philippines have a numerous big infrastructure projects through the medium of the Public Private Partnership (PPP). These projects will be a beneficial to companies for investing and providing materials, assistance and strategies.
On the 1st of January 2010, ASEAN together with Australia and New Zealand launched a Free Trade Agreement. This Free Trade Agreement will help the member states to boost each other’s market and economy. In addition, AANZFTA is the largest trade agreement that Australia is part of. Removal of tariffs to Australia and New Zealand in the markets of ASEAN will give them a chance to use the payment of tariffs in other means. It enhanced the markets of the participant states to be more liberalized in trading goods and services. The security of investments in ASEAN countries including in the Philippines are enhanced to ensure the safety of the investments and to encourage more foreign direct investors to invest in the country. Improving the business flow in the ASEAN community was also tackled in the agreement. The purpose of this is to enhance the regulatory procedures and to diminish the barrier in opening business and invest in the ASEA community and in the Philippines.
Read more on AANZFTA
Australia’s trade data with the Philippines according to Australian Government, Department of Foreign Affairs and Trade:
(Source: Australian Government, Department of Foreign Affairs and Trade)
Top Export Products of New Zealand
(As of 2013, Philippines ranks 12 in New Zealand’s export market for dairy products.)
Top Import Products of New Zealand
(Source: UN comtrade; comtrade.un.org)