Invest in the Philippines Presentation & Opportunities Valerio Mazzone EU Outreach Officer
Did you know? #1 in Marine Diversity #1 in Voice Call Centers #1 Sailors and Seafarers #1 Musicians #2 in BPOs #3 Longest Coastline #4 in Gold Reserves #4 in Shipbuilding #5 in All Other Mineral Resources #12 in Human Resources
Welcome to the Philippines! Population 100 million 12 th most populous country in the world 23,5 years: the average age of the population Economy GDP: $289 Billion (EUR 258 Billion) in 2014 GDP per capita: $2.913 (EUR 2.597) in 2014 GDP growth 6.1 % in 2014 (7.2 % in 2013) Language Filipino English (3rd largest English-speaking country in the world)
The Philippines ECONOMIC GROWTH & COMPETITIVENESS GDP growth 6.1 % in 2014 (7.2 % in 2013) Ranked 52 nd out of 189 countries from 59 th (+7 places) WEF s Global Competitiveness Report 2014-2015 EASE OF DOING BUSINESS Ranked 95 th out of 189 countries (+13 places) in 2015 108 th (+30 places) in 2013 World Bank Doing Business Report INVESTMENT GRADE RATINGS Fitch, S&P, Moody s, Japan, Korea Increased FDI interest towards Philippines
EU Exports EU-Philippines Trade The EU remains the Philippines 4th largest trading partner (2013) Services 1.2Billion (+5.3% in 2013) Goods 5.7Billion (+18.9% in 2013) Services 1.4Billion (+23.9% in 2013) Goods 5.1Billion (-0.9% in 2013) EU Imports
EU and Philippines Total stock of EU direct investments 7.6 billion (about 30% of total FDI stock in the Philippines) European companies are estimated to employ around 400,000 Filipinos Filipino migrants in the EU as well as Filipino seafarers manning European ships sent $3.1 billion ( 2.3 billion) back to the Philippines in 2013, making the EU the second largest source of remittances to the Philippines and the largest employer of Filipino seafarers.
Philippines-EU Trade Exports (EUR Mn) Imports (EUR Mn) Total Trade 2012 2013 2012 2013 2012 2013 1 Germany 1,532 1,729 1,829 1,982 3,360 3,710 2 France 985 1,460 328 308 1,313 1,768 3 Netherlands 335 389 1,289 1,322 1,623 1,711 4 UK 370 398 466 422 836 820 5 Italy 374 423 207 179 581 602 9 Austria 96 100 74 72 170 172 11 Hungary 11 7 161 140 172 147 16 Bulgaria 13 34 36 38 50 72 18 Romania 6 15 13 14 19 29 21 Slovakia 2 4 9 9 11 13
Incentives to invest in the Philippines Philippine Economic Zone Authority (PEZA) for exportoriented activities Board of Investment - Investment Priority Plan (IPP) Foreign ownership up to 100% except in areas included in the Foreign Investments Negative List (FINL)
Economic Zones Under the Philippine Economic Zone Authority (PEZA) many incentives have been developed to attract foreign investments to the country Incentives (fiscal and non-fiscal) Services to companies Investment promotion
Incentives to invest Eligible activities under PEZA Export Manufacturing IT Service Export Tourism Medical Tourism Agro-industrial Export Manufacturing Agro-industrial Bio-Fuel Manufacturing Logistics and Warehousing Services
PEZA: Incentives to invest Fiscal Temporary tax exemption or lower tax rate Tax and duty free importation for raw materials Zero rate of VAT for local purchases Exemption from payment of any and all local taxes Exemption from wharfage dues and export tax, impost or fees Exemption from expanded withholding tax Non-fiscal Simplified Import Export procedures Non-resident Foreign Nationals may be employed by PEZA-registered Economic Zone Enterprises in supervisory, technical or advisory positions Special Non-Immigrant Visa with Multiple Entry Privileges
Where are the opportunities? AGRIBUSINESS = 30% of the total jobs TOURISM = 20% growth year-on-year IT/BPO = 10% of the GNP ENERGY = 2 nd Highest price and shortage in supply INFRASTRUCTURE = 2.09% of the GDP (15% national budget) MEDICAL = 80,000 visitors in 2010
Where are the opportunities? PHARMA = Increase of 3 to 4% in recent years MANUFACTURING =12.3% growth over the last years AUTOMOTIVE = about 500,000 sales by 2022 RETAIL = It represents EUR 26 billion of the national added-value ENVIRONMENT =More than 15 million metric tons of solid waste product every year MARITIME = 35-40 % of the world s seafarers
Success Stories
Upcoming events for SMEs 16-18 April 2015 CONEX (Exhibition on architecture) 24 May 2015 - International Food Exhibition Philippines (IFEX) 17-19 June 2015 - Marine Philippines 2015 (Shipbuilding and Maritime event) 23 Sept. 2015 Energy Expo (Energy/Renew.) October 2015 - Agrilink (agribusiness exhibition) October 2015 ITBPM Summit (international IT & Business Process Management convention)
Automotive Energy/Ren ewables ICT & IT/BPM, and KPM Pharmaceut icals Food/Agricu lture Sectors Infrastructur e Transport, Maritime Manufacturi ng Tourism Financial Services Healthcare/ Medical Consumer Goods/Reta il Environmen t
8 partners
EPBN Overview Contribute to increase and diversify exports and investments of EU business, particularly SMEs, to the Philippines and the ASEAN regional market Strengthen EU business by facilitating market access in the Philippines Promote the Philippines as a high-potential trade and investment market Develop a strong cooperation between all the EU Business Networks working in the other ASEAN countries
Our support to EU SMEs Analysis and advocacy to better access the market Business coordination and support Market researches and strategies Delivery of information on business potential and opportunities Business empowering missions Regular update on trade and investments developments
Contact Information For more information send an email to: Valerio Mazzone EU Outreach Officer valerio.mazzone@epbn.ph Office Address: EPBN, 19F AXA Life Center, Senator Gil J. Puyat Avenue corner Tindalo St., Makati City, Philippines 1200 Tel: +632 8451324 Fax: +632 8451395
THANK YOU!