Found out why the Philippines is a hot destination for Start Ups
Watch: Philippines hosts ASEAN at its 50th Year: A Booming 622 Milllion Market, among the fastest growing regions in the world
Download the Consolidated List of Prohibited and Regulated Products for Export from the Philippines as of 12 December 2014
The Philippine Trade and Investment Centre in New Delhi encourages all current and prospective importers of Philippine products to consult the current list of Prohibited and Regulated Products for Export from the Philippines. This is summarized in the file below. A copy of the comprehensive list may be downloaded for detailed reference, in the link provided. For queries and clarifications, please contact: india@dti.gov.ph.
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The Philippines Investment Priorities Plan 2014-2016
Click the Image for the Full Text of the 2014-2016 Philippines Investment Priorities Plan (IPP)
With its strategic shift of strategy towards industry development which it started in January 2012, the DTI-BOI has now taken a proactive role in steering the country’s industrialization, and thus a revisit of the annually published Investment Priorities Plan (IPP) became necessary.
This IPP effected major changes from previous IPPs as it takes off from Chapter 3 (Competitive and Innovative Industry and Services Sectors) of the updated Philippine Development Plan (PDP) 2011-2016, wherein six (6) broad sectors, i.e., agroindustry, manufacturing, IT-BPM, tourism, logistics and construction are prioritized. This will be a 3-year document that considers the end-of-plan targets of the PDP subject to an annual review.
With the updated PDP as its foundation, the IPP espousing the new industrial policy now serves both as a developmental tool for investment decisions of the private sector and a promotional tool for government to encourage first movers in new investment areas and to provide appropriate responses to the most binding constraints that the prevent entry of investments or prevent industries from moving up the value chain. The new industrial policy aims to transform and upgrade the manufacturing industry with the long-term vision to develop globally competitive industries supported by strong forward and backward linkages.
In developing the 2014 List, a decision framework for the prioritization of economic activities was adopted. The framework focused on the potentials of the sectors to generate employment, move up the value chain, create spillovers and promote competitiveness in the market as well as closing the supply or value chain gaps as indicated in the sectoral roadmaps and available studies. The most binding constraints to the growth of the industries were identified and appropriate policy responses were recommended.
The IPP supports the thrust of the current Administration, thus, the theme “Industry Development for Inclusive Growth,” to emphasize that the Philippines is focusing on industry resurgence to promote sustainable and comprehensive growth.
In this connection, the 2014 IPP contains the following priority investment areas:
1. Preferred Activities that includes 4 broad sectors (manufacturing, agribusiness and fishery, services, and infrastructure and logistics) and 4 specific activities (energy, housing, hospitals and PPP projects);
2. Export Activities that cover the production and manufacture of export products, services exports and activities in support of exporters;
3. Activities with Special Laws that provide for either the mandatory inclusion of the activity in the IPP and/or the grant of incentives under E.O. 226; and
4. ARMM List, which encompasses priority investment areas that have been determined by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM) in accordance with E.O. 458.
This IPP was formulated through a participative, analytical, and multi-sectoral process. Four regional consultations were held in Metro Manila, Cebu, Davao, and Baguio City, along with four sectoral (manufacturing, services, infrastructure and power, and agriculture and fishery) consultations. There were also two inter-agency consultative meetings conducted, peer review sessions with the country’s leading economists, and on-line consultation to encourage the widest participation possible nationwide.
GREGORY L. DOMINGO
Chairman, Board of Investments
Secretary, Department of Trade and Industry
This IPP effected major changes from previous IPPs as it takes off from Chapter 3 (Competitive and Innovative Industry and Services Sectors) of the updated Philippine Development Plan (PDP) 2011-2016, wherein six (6) broad sectors, i.e., agroindustry, manufacturing, IT-BPM, tourism, logistics and construction are prioritized. This will be a 3-year document that considers the end-of-plan targets of the PDP subject to an annual review.
With the updated PDP as its foundation, the IPP espousing the new industrial policy now serves both as a developmental tool for investment decisions of the private sector and a promotional tool for government to encourage first movers in new investment areas and to provide appropriate responses to the most binding constraints that the prevent entry of investments or prevent industries from moving up the value chain. The new industrial policy aims to transform and upgrade the manufacturing industry with the long-term vision to develop globally competitive industries supported by strong forward and backward linkages.
In developing the 2014 List, a decision framework for the prioritization of economic activities was adopted. The framework focused on the potentials of the sectors to generate employment, move up the value chain, create spillovers and promote competitiveness in the market as well as closing the supply or value chain gaps as indicated in the sectoral roadmaps and available studies. The most binding constraints to the growth of the industries were identified and appropriate policy responses were recommended.
The IPP supports the thrust of the current Administration, thus, the theme “Industry Development for Inclusive Growth,” to emphasize that the Philippines is focusing on industry resurgence to promote sustainable and comprehensive growth.
In this connection, the 2014 IPP contains the following priority investment areas:
1. Preferred Activities that includes 4 broad sectors (manufacturing, agribusiness and fishery, services, and infrastructure and logistics) and 4 specific activities (energy, housing, hospitals and PPP projects);
2. Export Activities that cover the production and manufacture of export products, services exports and activities in support of exporters;
3. Activities with Special Laws that provide for either the mandatory inclusion of the activity in the IPP and/or the grant of incentives under E.O. 226; and
4. ARMM List, which encompasses priority investment areas that have been determined by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM) in accordance with E.O. 458.
This IPP was formulated through a participative, analytical, and multi-sectoral process. Four regional consultations were held in Metro Manila, Cebu, Davao, and Baguio City, along with four sectoral (manufacturing, services, infrastructure and power, and agriculture and fishery) consultations. There were also two inter-agency consultative meetings conducted, peer review sessions with the country’s leading economists, and on-line consultation to encourage the widest participation possible nationwide.
GREGORY L. DOMINGO
Chairman, Board of Investments
Secretary, Department of Trade and Industry
Doing Business in the Philippines Video Testimonials
Focus Sectors for Trade and Investments
WHY THE PHILIPPINES?
Workforce
The Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. With higher education priority, the literacy rate in the country is 94.6% — among the highest. English is taught in all schools, making the Philippines the world’s third largest English-speaking country. Every year, there are some 350,000 graduates enriching the professional pool.
Business location
The Philippines is located right in the heart of Asia – today the fastest growing region. It is located within four hours flying time from major capitals of the region. Sited at the crossroads of the eastern and western business, it is a critical entry point to over 500 million people in the Association of Southeast Asian Nations (ASEAN) market and a gateway of international shipping and air lanes suited for European and American businesses.
First-class Lifestyle
Discover the best of sun, sea, sand and style in the tropical setting teeming with the best of western amenities. The Philippines is second home to expatriates who enjoy the company of the warmest people in the region, the country’s openness to varied cultures, and a decidedly global outlook. Expats enjoy accessible and affordable luxuries – business centers, housing, schools, hospitals, shopping malls, hotels and restaurants, beach resorts, and recreation centers.
Abundant Resources
An archipelago like the Philippines offers diverse natural resources, from land to marine to mineral resources. It is also the biggest copper producer in Southeast Asia and among the top ten producers of gold in the world. It is also home to 2,145 fish species, four times more than those found in the Bahamas. The 7,100 islands boast of beautiful beaches and breathtaking sceneries that offer soothing leisure and relaxation spots for vacationers and tourists.
Low Cost of Doing Business
Wages are typically less than a fifth of that in the United States. Local communication, electricity, and housing costs are also 50% lower compared to the US rates. Foreign companies that are now outsourcing programming and business processes to the Philippines estimate 30%-40% business cost savings, 15%-30% call center services and application systems, and 35%-50% software development.
Liberalized and Business-Friendly Economy
An open economy, like the Philippines, allows 100% foreign ownership in almost all sectors and supports a Build-Operate-Transfer (BOT) investment scheme that other Asian countries emulate. Government corporations are being privatized and the banking, insurance, shipping telecommunications, and power industries have been deregulated. Incentive packages include the corporate income tax, reduced to a current 32%, with companies in the Special Economic Zones (ecozones) subject to only 5% overall tax rates. Multinationals looking for regional headquarters are entitled to incentives such as tax exemptions and tax and duty-free importation of specific equipment and materials.
Unlimited Business Opportunities
Asian economies integrate within the vast framework of the ASEAN Free Trade Agreement (AFTA), the Philippines is the natural and most strategic location for firms that want access to the large ASEAN market and its vast trade opportunities. The Philippines has enhanced and primed up various areas for investors and offers a dynamic consumer market accustomed to an array of product choices created by a competitive domestic economy.
Developing Infrastructure for Global Growth
A well-developed communication, transportation, business, and economic infrastructure links the three major islands — Luzon, Visayas, and Mindanao — and distinguishes the Philippine economy. Highly accessible by air, water, and cyberspace, liberalization of inter-island shipping and domestic aviation further sparked improved facilities and services. The container terminals are suited to handle cargo traffic at the highest levels of efficiency.
Primer on Doing Business in the Philippines (Download here)
Workforce
The Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. With higher education priority, the literacy rate in the country is 94.6% — among the highest. English is taught in all schools, making the Philippines the world’s third largest English-speaking country. Every year, there are some 350,000 graduates enriching the professional pool.
Business location
The Philippines is located right in the heart of Asia – today the fastest growing region. It is located within four hours flying time from major capitals of the region. Sited at the crossroads of the eastern and western business, it is a critical entry point to over 500 million people in the Association of Southeast Asian Nations (ASEAN) market and a gateway of international shipping and air lanes suited for European and American businesses.
First-class Lifestyle
Discover the best of sun, sea, sand and style in the tropical setting teeming with the best of western amenities. The Philippines is second home to expatriates who enjoy the company of the warmest people in the region, the country’s openness to varied cultures, and a decidedly global outlook. Expats enjoy accessible and affordable luxuries – business centers, housing, schools, hospitals, shopping malls, hotels and restaurants, beach resorts, and recreation centers.
Abundant Resources
An archipelago like the Philippines offers diverse natural resources, from land to marine to mineral resources. It is also the biggest copper producer in Southeast Asia and among the top ten producers of gold in the world. It is also home to 2,145 fish species, four times more than those found in the Bahamas. The 7,100 islands boast of beautiful beaches and breathtaking sceneries that offer soothing leisure and relaxation spots for vacationers and tourists.
Low Cost of Doing Business
Wages are typically less than a fifth of that in the United States. Local communication, electricity, and housing costs are also 50% lower compared to the US rates. Foreign companies that are now outsourcing programming and business processes to the Philippines estimate 30%-40% business cost savings, 15%-30% call center services and application systems, and 35%-50% software development.
Liberalized and Business-Friendly Economy
An open economy, like the Philippines, allows 100% foreign ownership in almost all sectors and supports a Build-Operate-Transfer (BOT) investment scheme that other Asian countries emulate. Government corporations are being privatized and the banking, insurance, shipping telecommunications, and power industries have been deregulated. Incentive packages include the corporate income tax, reduced to a current 32%, with companies in the Special Economic Zones (ecozones) subject to only 5% overall tax rates. Multinationals looking for regional headquarters are entitled to incentives such as tax exemptions and tax and duty-free importation of specific equipment and materials.
Unlimited Business Opportunities
Asian economies integrate within the vast framework of the ASEAN Free Trade Agreement (AFTA), the Philippines is the natural and most strategic location for firms that want access to the large ASEAN market and its vast trade opportunities. The Philippines has enhanced and primed up various areas for investors and offers a dynamic consumer market accustomed to an array of product choices created by a competitive domestic economy.
Developing Infrastructure for Global Growth
A well-developed communication, transportation, business, and economic infrastructure links the three major islands — Luzon, Visayas, and Mindanao — and distinguishes the Philippine economy. Highly accessible by air, water, and cyberspace, liberalization of inter-island shipping and domestic aviation further sparked improved facilities and services. The container terminals are suited to handle cargo traffic at the highest levels of efficiency.
Primer on Doing Business in the Philippines (Download here)
Despite the global economic challenges, the Philippines remains bullish as far as creating an ideal climate for both existing and potential investors. Part of the overall effort to achieve this goal is to provide relevant and updated information to local and foreign businessmen.
The Board of Investments (BOI), the line agency involved in marketing and investment promotion, came up with this Primer to guide prospective investors in making sound investment decisions.
The Primer includes the country’s laws, rules and regulations and policies that govern the procedural requirements that should be followed. This Primer is intended to provide a better understanding of the Philippine investments regime and thereby entice more businessmen to invest in the country’s priority investment areas
Download the Primer here:
The Board of Investments (BOI), the line agency involved in marketing and investment promotion, came up with this Primer to guide prospective investors in making sound investment decisions.
The Primer includes the country’s laws, rules and regulations and policies that govern the procedural requirements that should be followed. This Primer is intended to provide a better understanding of the Philippine investments regime and thereby entice more businessmen to invest in the country’s priority investment areas
Download the Primer here:
The Philippine Trade & Investment Centre - New Delhi
Embassy of the Philippines - Commercial Section, 50-N Nyaya Marg, Chanakyapuri, New Delhi, Delhi 110021, India
Telephone: +91 11 2410 5017 Fax: +91 11 2410 5016 EMail: india@dti.gov.ph
Embassy of the Philippines - Commercial Section, 50-N Nyaya Marg, Chanakyapuri, New Delhi, Delhi 110021, India
Telephone: +91 11 2410 5017 Fax: +91 11 2410 5016 EMail: india@dti.gov.ph