Why the Philippines?

Located at the heart of Asia, the Philippines has been known as one of the fastest-growing economies in the region today. With more than a 100 million inhabitants with exceptional English proficiency, the services sector is striving and internal consumption is on the rise. With its strategic geographical location, it serves as a potential gateway for businesses to access not just the Philippines but also to the Asian market.

Philippines – Profile

The archipelago of the Philippines, located in Southeast Asia, consists more than 7,000 islands with the geographic size of 300,000 km sq. There are three major islands: Luzon, Visayas and Mindanao.
The official languages of the country are English and Filipino. However, there are other major dialects that are spoken in the country such as Ilocano, Kapampangan, etc.

The Philippine culture has three major influences that impacted the country: Chinese, Spanish, and American. History played a significant role in the evolution of Filipino cultural life which greatly affected the lives of the Filipinos.

With these influences, the Filipinos have retained its richness and diversity in culture with its unique traditions and customs.

Highlights

As one of the fastest growing economies in Asia, the Philippines ranked third with 6.7% GDP growth after China (6.9%) and Vietnam (6.8%) in 2017. The country is also considered as the 10th fastest growing economy worldwide.
The Philippines has sustained a high and progressive economic growth averaging at 6.4% from 2010 to 2017.
The Philippines is one of the founding member of Association of Southeast Asian Nations (ASEAN) and it is considered as the third largest economy and the second biggest market in the ASEAN region.

Tourism in the Philippines

 

The Philippines has a competitive advantage in tourism as the country is rich in natural resources with beaches and rich biodiversity. In 2017, the tourism industries contributed 12.2% to the philippine economy which was 24.2% higher compared to the previous year’s record. The robust growth was marked by the support from the government administration in implementing tourist-friendly programs in the country.

 

Economic Performance of the Philippines

In 2017, the Philippines’ overall growth reached 6.7% which is considered the highest and the fastest growth during the past 60 years. Moreover, the country has registered faster growth compared to Indonesia, Malaysia and Thailand in the southeast Asian region which posted a significant achievement for the Philippines. Thanks to the expanding labor force, it contributed a large share in the growth of the country.

Sustainable development in the Philippines  

With the support of the United Nations, the Philippines has been progressing towards developing its development goals and implementing its sustainable development.

 

In line with the vision of the global community has brought, the Philippines has extended their efforts to complement the current economic-centered activities in the country.

Philippines as a potential country  

 

With more than a 100 million inhabitants with exceptional skills and English proficiency, the Philippines offers a wide range of business opportunities and expansion. It has manifested to create conditions for businesses such as liberalized policies and regulations, availability and accessibility of economic zones, ports, and airports, a competitive edge in information technology (IT), highly-developed legal system, and a business-friendly democratic government.

Business Climate in the Philippines

 
With the growing economy, the country offers opportunities for business development and investments. The country is distinguished for an improved business climate as it strides in good governance, transparency, and accountability. Some of the fuelling factors that contributed the establishment of various businesses in the country are the following: positive growth rates, massive pool of skilled workers, lower overhead cost, and other essential resources. However, there are certain government regulations that business start-up must take note of such as registration of business, foreign ownership of equity and investment, ownership of real properties by foreign investors or corporations, and incentives for registered enterprise. 

In 2017, the key sector that proved to be the strongest performer in the Philippines is the services sector which contributed 59.8% in the total GDP. Following the services sector, industry sector contributed 30.8% and the agriculture sector contributed 9.4%. 

Majority of the investment inflows are composed of manufacturing, finance and insurance, real estate, and wholesale and retail. The Philippines' largest investment partner, the EU, accounts for about 37% of total Foreign Direct Investment stock. 

 

Philippines as an essential global player 

 
The Philippines participates as a member, signatory or observer in the following international organizations:

ADB, APEC, ARF, ASEAN, BIS, CD, CICA (observer), CP, EAS, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINUSTAH, NAM, OAS (observer), OPCW, PCA, PIF (partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, Union Latina, UNMIL, UNMOGIP, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

 

The Philippines has developed negotiations in Free Trade Agreement (FTA) engagement. The following are the current FTAs that Philippines is currently engaged in:

 

  • ASEAN Free Trade Area (AFTA)
  • ASEAN Plus Six (ASEAN +6)
  • ASEAN Trade in Goods Agreement (ATIGA)
  • European Free Trade Association (EFTA)
  • Philippine-Japan Economic Partnership Agreement (PJEPA)
     
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