trade and investment opportunities in the...
TRANSCRIPT
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
Source: NSCB
4.8 5.2
6.6
4.2
1.1
7.8
0
1
2
3
4
5
6
7
8
0
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%
$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$24.7 B, ↑ 4.1%
Expanding Exports in 2010
Electronics 60.4
Articles of apparel & clothing accessories,
3.3
Coconut oil 2.5
Woodcrafts & furniture, 2.3
Ignition wiring set & other wiring sets, 2.2
Others
1 JAPAN 7.841
2 USA 7.559
CHINA 5.724
HK 4.334
SINGAPORE 7.319
5
3
Total PH Exports 51.50
4
PH’s Top Export Markets, 2010
In US$ Billion PHs Top Commodity Exports, 2010
In % Share
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
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
Growth Industries
Electronics
Agribusiness
BPO/Call Centers/IT
Design Industry
Housing
Shipbuilding/Heavy Industries
Tourism
Mining
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
9
2011 IPP: Theme, Goal & Objectives
THEME: “A New Day for Investments: Coherent, Consistent
and Creative”
OBJECTIVES:
• Enhance public-private partnerships
• Maximize the opportunities 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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TOURISM
• Tourist Transport
• Tourism-related facilities
• Retirement Village
2011 IPP Preferred Activity
• 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
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TOURISM 2011 IPP Preferred Activity
• 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
• Retirement Village
• Minimum area of twenty (20) hectares
may qualify for pioneer status
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TOURISM 2011 IPP Preferred Activity
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
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
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
AGRIBUSINESS
GROWTH Industry
PH is 47% Agricultural Land
Opportunities in post-harvest facilities such as cold chain facility
36,289 coastline
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 operation
85 years of pineapple growing and processing
DEL MONTE PHILIPPINES
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
HANJIN
Established in 2006 with US$1.8 B investments
Employs around 20,000 employees
Manufactures ships from 175,000 dwt to 320,000 dwt
H A N J I N Heavy Industries Co. (HHIC) Phils., Inc.
Source: www.hhic-phil.com
Large-scale Company
TSUNEISHI T S U N E I S H I Heavy Industries (Cebu), Inc.
Builds merchant ships up to 180,000 dwt
Engages in shipbuilding, ship repair and manufacturing of
outfittings, engineering & fabrication services, conversion
services for foreign and PH clients
Source: www.newsflash.org
Large-scale Company
Filipino-based modular manufacturing units allow
clients to execute critical projects world-wide,
reducing on-site labor costs by up to 80%; clients
reduce local sourcing and construction risk
enabling them to implement high-quality projects
anywhere in the world with far less volatility
A G & P
Large-scale Company
D E S I G N - based Industry
SEIPI
SEIPI
Sources: BETP, Manila FAME International
GROWTH Industry
Export Value in
US$ Millions
2010 Jan-June
2011
Textile, Apparel,
Footwear & Travel
Goods
1,950 1,035
Woodcraft &
Furniture
1,181 850
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
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
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
Prospects and Outlook
• 10% merchandise and
16% service exports
growth for 2011-2013
• 15% investment growth
for 2011 & 2012
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