opportunities in the philippines: why invest in the ... · enabling business, empowering consumers
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Opportunities in the
Philippines: Why Invest
in the Philippines
Secretary Ramon M. Lopez
Enabling Business,
Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
The Philippines: Bright Spot in AsiaFastest Growing Economy Among Select Asian Economies
6.7
5.0
6.86.2
2.3
3.5
1.8
4.7
China Indonesia Philippines Vietnam
FY 2016 GDP Growth Rate & Inflation Rate
GDP Growth Rate Inflation Rate
PH GDP Growth Rates (2011 – 2016)
2011
3.7%
2012
6.7%
2013
7.1%
2014
6.2%
2015
5.9%
2016
6.8%
FY 2016 Growth Drivers
Manufacturing
7.0%
Trade
7.3%
Real Estate, Renting & Business Activities
9.1%
2016 GDP,
up by 6.8%
Industry
8.0%
Services
7.5%
Agriculture
-1.3%
3 Major Sectors
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19th
of the Top
20 Foreign
Direct
Investment
Destinations
Investment Grade
The Philippines: Bright Spot in AsiaGrowing, Rising, Stable Philippines
PH
From 2011 to 2016, the Philippines
posted some of the biggest
improvements globally in the
Heritage Foundation Economic
Freedom Index (+45), World
Economic Forum Global
Competitiveness Report (+18), and
International Finance Corporation
Ease of Doing Business Report
(+31).
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Net Foreign Direct Investments
2011-2016 (Jan-Oct)
The Philippines: Bright Spot in AsiaJan-Oct 2016 FDI inflows up by 22%, reaching US$6.2 B
1 2
Top Industry/Sectors, Jan-Oct 2016
3 4 5
US$2.0 B US$3.2 B
US$3.7 B
US$5.7 B US$5.8 B US$6.2 B
2011 2012 2013 2014 2015 Jan-Oct2016
Insurance ActivitiesManufacturing Real Estate
ActivitiesConstruction Accommodation
and Food Service
Activities
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Top FDI Sources
(Jan-Oct 2016)
The Philippines: Bright Spot in AsiaJan-Oct 2016 FDI inflows up by 22%, reaching US$6.2 B
1
2
3
4 5
1. Japan: US$924 M
2. Singapore: US$170 M
5. Spain: US$76 M3. Taiwan: US$134 M
4. USA: US$85 M
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
BOI-Approved Investments, FY 2011 – 2016
The Philippines: Bright Spot in AsiaUS$9.3 B approved projects in 2016, up by 21%
2016 TOP SECTORS
1. Electricity, Gas, Steam & Air
Conditioning Supply
2. Real Estate Activities
3. Construction
4. Manufacturing
5. Transportation & Storage
2016 TOP SOURCES
1. Australia
2. Singapore
3. Netherlands
4. Japan
5. South Korea
US$8.5 B US$8.5 B
US$11.0 B
US$8.0 B US$8.1 B
US$9.3 B
2011 2012 2013 2014 2015 2016
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Land Management6
President Duterte Administration10-Point Socioeconomic Agenda
Competitiveness3
Rural & Value Chain
Development5
Macroeconomic
Policies1
Infrastructure4
Human Capital
Development7
Innovation & Creative
Capacity8
Social Protection9
Tax Reform2
Responsible Parenthood
& RH Law10
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Manufacturing
• Electronic manufacturing services
• Automotive and auto parts
• Aerospace parts
• Chemicals
• Shipbuilding
• Tool and die
• Furniture and garments
Agribusiness
• Cacao, coffee, mangoes,
bananas, coconuts,
rubber, bamboo, fruits
and nuts, palm oil
• Other high value crops
TOP PRIORITY AREAS
Services
• IT-BPM (non-voice services BPO
and KPO segments in medical,
financial and legal services;
game development; engineering
design in manufacturing;
software development, and
shared services
• Construction
• NEW INDUSTRIAL POLICY
• BOLDER TRADE POLICY
• INTENSE INVESTMENT PROMOTION
• SKILLS TRAINING & HUMAN RESOURCE DEVELOPMENT
• INNOVATION & R&D
• MODERN SME POLICY
Infrastructure & Logistics
• Power
• Transport and logistics Tourism
Comprehensive National Industrial
Strategy (CNIS)
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Mindset
Mastery
Mentoring
Market Access
Money AccessMachine
Models of Negosyo
• Negosyo Centers
• SMERA
• Negosyo Center Business Coaching
• Innovation Center
• Business Development Support Strike Team
• Kapatid Program (Mentor Me)
• Go Lokal!
• Government Procurement
• Inclusive Business
• Link to MFI
• Pondo para sa Pagbabago at Pagasenso P3
• Shared Service Facility (SSF)
• Franchising
• Distributorship
• Direct Selling
• Skills Training (PHIL BAKING)
MSMEs99.6%
0.4% Others
DTI’s 7Ms for MSME Development
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Infrastructure Development
Opportunities for Investors and
Business
361 Economic Zones and IPAs
73 Manufacturing EcoZones
246 IT Parks and Centers
21 Agro-Industrial EcoZones
19 Tourism EcoZones
2 Medical Tourism Zones
PPP and other Infrastructure Projects
(in the pipeline)
NAIA Expressway
LRT Line 1 Cavite Extension
Daang Hari-SLEX Link Road
Southwest Integrated Transport System (ITS)
Cavite-Laguna Expressway
Bulacan Bulk Water Supply
Other Infrastructure Projects
under implementation
MRT Line 7
Metro Manila Skyway Stage 3
Projects under Procurement
New Bohol Airport Operations, Maintenance
and Development
NLEX-SLEX Connector Road
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Strategic Location
Opportunities for Investors and
Business
JapanTokyo
South KoreaSeoul
Shanghai
C h i n a
TaiwanTaipei
Hong Kong
ThailandBangkok
MalaysiaKuala Lumpur
Singapore
IndonesiaJakarta
3.25 hrs.
2 hrs.
3 hrs.
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
LAOS
THAILAND
SINGAPORE
BRUNEI
MYANMAR
VIETNAM
CAMBODIA
MALAYSIA
CURRENT FREE TRADE ROUTES TO THE PHILIPPINES
Market Size• PH - 101 M• ASEAN - 629 M• ASEAN+6 - 3.5 B (1/2 of World Population)
- $22.4 T (1/3 of World Economy)
AUSTRALIA
NEW ZEALAND
INDIA
JAPAN
CHINAKOREA
INDONESIA
PHILIPPINES
Opportunities for Investors and
Business
Enabling Business,
Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
PH in Demographic Sweet Spot
Young, employed, more prosperous consumer-base
for many more years
Opportunities for Investors and
Business
PHILIPPINES, 23.1
THAILAND, 34.7
VIET NAM, 28.2
JAPAN, 45.4
UAE, 30.2
USA, 37.1
years old
23.1
Filipinos are younger compared to the rest of the world.
The median age in the Philippines is 23.1 years old.
This is equivalent to the age of someone who recently graduated from college.
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Human Capital Advantage
Opportunities for Investors and
Business
English SpeakingHonest with
Integrity Creative
Rich Talent Pool
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Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines
Fastest growing economyRising, stable economy (Improved competitiveness and investment grade)
Powered by strategic investment flows
Clear 10+1 economic agenda (Stable macroeconomic policies and infrastructure development)
Comprehensive National Industrial Strategy (CNIS)
Strategic locationExpanded market size (Gateway to ASEAN and ASEAN+6 markets)
Demographic sweet spot Human capital advantage
In Summary – Why Consider the
Philippines
Q1 2017+34.5%
Business Confidence
+18.8%
Consumer Confidence
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Arigatou Gozaimasu!