eu-philippines business...

EU-Philippines Business Network: Building stronger trade and investment ties

between the EU and the Philippines

Antonio Alcazar

EU Outreach and Business Support Consultant

[email protected]

Agenda

I. Country overview: The Philippines

II. What the EU-Philippines Business Network (EPBN) is all about

III. Business opportunities in the Philippines for EU enterprises

IV. EPBN business support services

V. Upcoming business missions and events

The Philippines: Overview “The Philippines is the top-performing economy in Southeast Asia.” – Oxford Business Group (OBG), 2016

“Investors no longer ask why but where and what sectors they should invest in.” – OBG Managing Editor Paulius Kuncinas, 2016

“The Philippines is the next ‘Asian miracle’ and a global model in fighting corruption.” – World Bank President Jim Yong Kim, 2014

The Philippines: Overview


GDP growth in 2016 Q3: 7,1% Government target for 2016–19: 6 to 8%.


Source: National Economic Development Authority, 2015

The Philippines: Overview GDP is heavily dependent on the services sector

• Services 57,03%; industry 33,48%; agriculture 9,49% of GPD in 2015

Consumption-driven economy: 61% of GDP is formed by household consumption expenditure

• Fueled by overseas remittances amounting to $29,7bn and the IT-Business Process Management (ITBPM) industry $29,7bn (2015)

• Other growth sectors in 2015 are manufacturing (5,7%), construction (8,9%), real estate services (7,3%), and financial intermediation (5,7%).

Total exports $61,8bn, imports $64,5bn

Source: National Statistical Coordination Board


World Bank Doing Business rank in 2015: 97

The Philippines: Overview Investment-grade credit ratings (Fitch, S&P, Moody’s)

Net FDI reached $5,72bn in 2015 from $5,74bn in 2014

Fiscal and non-fiscal incentives offered by the government to priority investment areas • Board of Investment (BOI): Investment Priorities Plan 2014–16

• Philippine Economic Zone Authority (PEZA) for export-oriented activities

Foreign ownership of businesses • Foreigners can invest up to 100% equity in corporations,

partnerships and other entities in the Philippines, except in areas included in the Foreign Investments Negative List (FINL) and the 1987 Constitution.

The Philippines: Overview Total population: 100,7 million in 2015 (12th most populous

country in the world)

Annual population growth: 1,6%

Official languages: Filipino and English

Education: Around half a million graduates annually from private and public schools

Average age of population: 23,5

Life expectancy: 65,4 years for males, 72,5 for females (WHO 2013)

Size of labour force: 41,6 million (2014)

Major religions: Roman Catholic 83%; Protestant 9%; Muslim 5%

Ethnicity: Christian Malay 91,5%; Muslim Malay 4%; Chinese 1,5%; others 3%

Agenda






EU ICI+ approach to Southeast Asia

1. European Association for Business

and Commerce

2. European Chamber of Commerce in

Cambodia

3. EU-Indonesia Business Network

4. EU-Malaysia Chamber of Commerce

and Industry

5. EuroCham Myanmar

6. EU-Philippines Business Network

7. EU-Vietnam Business Network

Who we are

What we do

EPBN provides a support framework for

European companies, especially SMEs, that are

interested in internationalising towards the

Philippine market through exports, foreign

investments, partnerships with local companies,

and other business development modalities.

Two-pronged strategy

AD

VO

CA

CY

BU

SIN

ES

S S

UP

PO

RT

& O

UT

RE

AC

H

To promote the adoption of

cross-cutting and sector-

specific policies that aim to

level the playing field and

increase market access

opportunities for European

businesses

To highlight Philippine

business opportunities in

EU markets and provide

business support services

to potential EU investors,

exporters or locators

Areas of opportunity

Agriculture

Consumer goods & retail

Energy

Financial services

Health care & pharmaceuticals

Food & beverages

Automotive industry

Human capital Maritime

ICT

Infrastructure, transport & real estate

Manufacturing

Environment & water

Tourism

Agenda






Energy

The Philippine energy sector is comprised mainly of conventional fossil fuel (coal, diesel, and natural gas) and renewable energy (geothermal, hydro, biomass, solar, and wind).

Power generation contributes up to 7% of the country’s GDP growth.

Energy FUELTYPE

PHILIPPINES(2015)

Capacity(MW) PercentShare(%)

Installed Dependable Installed Dependable

Coal 5893 5632 31,5 34,2

Oil-based 3610 2734 19,3 16,6

NaturalGas 2862 2759 15,3 16,8

Geothermal 1917 1601 10,3 9,7

Hydro 3600 3073 19,3 18,7

Wind 427 379 2,3 2,3

Solar 165 125 0,9 0,8

Biomass 221 146 1,2 0,9

TOTAL 18,695 16,451 100 100

GRIDCapacity(MW) PercentShare(%)

Installed Dependable Installed Dependable

LUZON 13598 12179 72,7 74

VISAYAS 2683 2228 14,4 13,5

MINDANAO 2414 2044 12,9 12,4

TOTAL 18695 16451 100 100

Energy: Opportunities for EU business

Geothermal Energy – development of additional 35 plants

Hydrothermal Energy – export of electromechanical equipment and set-up facilities

Biomass or Biogas – new technologies to harness the RE potential of plant material and animal waste

Wind Energy – development of additional 2 345 MW wind power capacity by 2030

Energy: Opportunities for EU business

Solar Energy – photovoltaic power, for power and non-power application, in rural areas such as individual solar home systems and community-based lighting applications (e.g. streetlights, village centers, schools)

Ocean Energy – need for more technical case studies and appropriate technology transfers and infrastructure investments

Clean Coal – coal preparation plants to upgrade the quality of Philippine coals; expansion of production volumes of higher-rank coal; introduction of clean coal technologies

Energy: Success cases of EU investments

Environment & water

Increase in the sheer volume of generated wastes across all sectors

Meeting the country’s water demand, which is expected to increase by almost threefold to 86,5 BCM in 2025 from 30 BCM in 1996

Major areas across the country are prone to severe flooding due to frequency of typhoons

Environment & water: Opportunities for EU business

Solid waste management – treatment and disposal of hazardous and medical waste; recycling of paper, ferrous and non-ferrous metals, and plastic (HDPE, LDPE and PET); composting and biogas production from organic waste; and leachate treatment and re-use of landfill gas

Environment & water: Opportunities for EU business

Water supply management & wastewater treatment – technologies that can reduce sludge production, weight, and volume through dewatering, filter press, and other methods; technological solutions to reduce the ecological footprint of wastewater treatment plants

Structural flood control measures – rehabilitation and improvement of existing pumping stations

Environment & water: Success cases of EU investments

Science, technology & innovation (STI)

STI: Opportunities for collaboration

Buildings and resource efficiency – solar powered cooling systems, energy-efficient lighting solutions, and so on


Localised networked water systems – customising water treatment solutions to specific uses by separating residential, industrial, agricultural, energy, and other water use segments


Solid waste solutions – Conversion of shopping mall waste to energy; treatment of e-waste and medical/hazardous waste

Agenda






EPBN services Advocacy and market access (committee work;

constructive participation in the policy-making process)

Business intelligence and local expertise (market studies, business matching, new market entry support, business development, brand franchising)

Fact-finding trade missions (ministerial or business delegations, trade fair participation)

Strong business-to-government relations (EU embassies and Philippine government agencies)

Commercial representation through a dedicated sales agent supervised by EPBN as an alternative to formally setting up office

Agenda






Upcoming events EU–ASEAN Business Summit 2017 (8–11

March)

EU Business Mission to Worldbex Philippines 2017 (15–19 March)

EU Business Mission to Water Challenge Forum Philippines 2017 (14 June)

EU-Philippines Business Summit and Matchmaking (October)

EU Business Mission to Philconstruct Philippines 2017 (November)

EU-Philippines Business Network Building stronger trade and investment ties

between the EU and the Philippines

Antonio Alcazar

EU Outreach and Business Support Consultant

[email protected]

eu-philippines business...

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