Boosting the manufacturing sector will be one of the main objectives of the updated Philippine Development Plan (PDP). Indeed the PDP for 2010-2016 is currently in the process of being updated by the Aquino Administration’s economic team and should be released by the end of the year.
Industry experts have already reported a growth of the manufacturing industry over the last few years (following the slowdown of 2009) which can be explained by the improved governance, the potential tax incentives offered to manufacturing companies and the general economic stability. The country also benefits from factors in the external environment such as the rising cost in Thailand and Vietnam or the escalating tensions between Japan, Taiwan and China due to territorial disputes.
In Triple i Consulting we have ourselves experienced an increasing number of inquiries regarding the relocation of manufacturing plants from Japan, China and Australia. According to Gregory Domingo, Trade Secretary, the Philippines is now becoming a cheaper destination for manufacturing firms abroad and these new plants setting up in the country will boost the sector and participate in supporting the economic growth.
To further improve the current growth the government seems ready to address problems in the bureaucracy that makes it more difficult for investors to do business in the Philippines. And to complement the requirements of a growth of the industry the government announced the intention to allocate more funds for infrastructure, which represents an essential condition of the country’s development.
Currently the country is ranked 24th biggest manufacturing country. Over the last decade the industry accounted for 38% of total investments in the Philippines, and 86% of the country’s total export. But as the fastest growing Asian country in the first quarter of 2013, the Philippines is ready to welcome foreign investors willing to invest in the manufacturing sector.
Triple i consulting has many years of experience doing business in the Philippines. Our experienced team of International advisers can assist you with setting up and successfully operating your business in the Philippines. Contact us today to find out what we can do for you.