As global investors search for stable, high-growth markets, the Philippines stands out in 2025. This is thanks to its growing economy, government incentives, favorable deals with the U.S., strategic location in Asia, and a young, English-speaking workforce. Here’s a closer look at what makes the Philippines an ideal place to do business.
Reason #1. Robust Economic Growth
In 2023, the Philippines grew by approximately 5.6% (according to the Department of Trade and Industry), making it the fastest-growing major economy in Asia, surpassing China (around 5.2%) and Vietnam (about 5.0%). In 2024, the economy grew by 5.7% and the Philippine government expects it to continue rising by 5.5%-6.5%, driven by strong public consumption, infrastructure investment, and export recovery.
Reason #2. Government Incentives & Business-Friendly Reforms
To attract investors, the Philippine government offers a suite of business incentives:
- PEZA (Philippine Economic Zone Authority) provides tax holidays, duty-free importation of capital goods, zero VAT on local purchases, and streamlined permitting for companies in special economic zones.
- Structural reforms under the CREATE Act (tax incentives), the Ease of Paying Taxes Act, and the Ease of Doing Business Act enable fast permit processing on digital platforms, with defined turnaround times for various government clearances .
- The Tatak Pinoy (Proudly Filipino) Act, signed in February 2024, fosters innovation and high-value manufacturing by bringing together the government and private sectors in strategic development initiatives .
Reason #3. Favorable U.S.–Philippine Relations Boost Trade and Security Ties
The Philippines has long been a U.S. ally, but recent developments under the Trump administration have deepened that bond.
- In July 2025, President Marcos Jr. visited Washington, culminating in a trade deal: U.S. imports from the Philippines will face a 19% tariff, while U.S. goods enter the Philippines with zero tariffs. This means the Philippines faces lower tariffs than many other countries while maintaining all its other competitive advantages.
- The Philippines is also not a primary exporter to the USA, so the 19% tariff will not significantly hinder its economy.
- Security cooperation in the Indo-Pacific maritime domain and infrastructure projects like the Luzon Economic Corridor show the USA continues to have a friendly relationship with the Philippines.
Reason #4. Strategic Location at the Heart of Asia
The Philippines occupies a pivotal position at the crossroads of Southeast Asia. Falling under the RCEP trade bloc, the country benefits from favored rules of origin, making it an attractive Asian manufacturing and logistics base. Developments like the Luzon Economic Corridor, supported by U.S. and Japanese investment, will enhance connectivity across Subic, Clark, Manila, and Batangas, making it easier for the Philippines to function as a regional logistics hub.
Reason #5. Young, English-Speaking Workforce Driving BPO & Innovation
With one of the youngest populations in Asia, the Philippines offers a large, educated workforce fluent in English. This has made it the global leader in business process outsourcing (BPO). Revenues in 2023 reached roughly USD 21 billion (up ~7.6%) according to the Department of Finance.
Summary
In 2025, the Philippines will have several advantages, making it an excellent location to start an enterprise. These include:
- One of the fastest-growing economies in Asia
- A government lowering barriers and providing incentives
- Strengthening U.S. trade and security ties
- An advantageous location within Asia’s supply chains
- A young, English-speaking workforce ready to power BPO, tech, logistics, and manufacturing sectors
Entrepreneurs and investors should consider starting a business in the Philippines, especially in priority sectors where government incentives are available.
Are You Registering a Business for the First Time? Here’s Where to Get Help
Setting up a business in the Philippines can be complex due to the many requirements, permits, licenses, and regulations involved. Missing a document or failing to comply with specific industry regulations can lead to costly fines or suspension of your operations.
That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants offers comprehensive support for your business registration. We’ll handle the paperwork so you can focus on what matters—running your business and achieving financial success.
Contact us today to schedule an initial consultation with one of our experts:
- Fill out the form below
- Call us at: +63 (02) 8540-9623
- Send an email to: info@tripleiconsulting.com
