investor guide

TARGETED INDUSTRIES

By General Classification

  • Exporting Industries
  • Light industry
  • Manufacturing
  • Environment-friendly

back to top

COUNTRY PROFILE

Land Area Coastline
300,000 sq. km. (archipelago of 7,100 islands) 36,289 kilometers
Geography
Three main island groups: Luzon, Visayas & Mindanao Capital: Manila (Land area - 38.3 sq. km)
Political System
The 1987 Constitution provides for a presidential system of government with a bicameral parliament and three (3) equal branches: executive, legislative and judiciary.
Population Projected Population
76.5 million (as of May 1, 2000) 88.7 million (as of 2007) 
Population Density
255 persons/sq. km. (as of May 1, 2000)  
Population Growth Rate Labor Force Participation Rate
2.05% (2000 - 2005) 63.6 (July 2007)
Employment Rate Literacy Rate
92.2 (July 2007) 93.4% (2003)
Number of Graduates Annually
Secondary school, over one million, college level, 405,000
Languages Spoken
Filipino, English and other regional dialects
Ethnic Profile
Christian Malay 91.5%, Muslim Malay 4%, Chinese 1.5%, others 3%
Major Religion
85% are Roman Catholics, the rest are Protestants and Muslims
Climate
Tropical with temperatures ranging from 23-32 °C. Two distinct seasons: Wet (June to October) & Dry (November to May)
Currency Unit Business Hours
Philippine Peso 0800-1700 (Private/Gov't Offices)
0900-1500 (Banks)
1000-2000 (Stores/Malls)
Time Zone GDP
GMT +8 hrs. GNP: 7.8% (2007) 7.3% (2007)
Average Flying Hours
Tokyo 3:35
Hong Kong 1:20
Jakarta 4:25
Kuala Lumpur 3:30
Paris 16:40
New York 17:30
Singapore 3:00
Sydney 7:40
Shanghai 2:20 		Seoul 4:00
San Francisco 11:50
Frankfurt 13:00
Taipei 1:20
Bangkok 3:00
Brunei 2:30
Viet Nam 2:30
Brussels 14:16
London 14:00
Inflation Exports
2.8% (2007) US$ 3,951 Million (Nov-2007)
Imports Principal Exports
US$ 5,084 Million (Nov-2007) Semi-Conductors and Electronic Microcircuits; Garments; Finished Electrical Machinery; Crude Coconut Oil 
Principal Markets
USA, Japan, Hong Kong, Taiwan, Malaysia, Singapore, China, Germany 


Source: Department of Trade and Industry (DTI)

back to top

GOVERNMENT INCENTIVES

The Philippine Government promotes the country as an investment destination mainly through the Department of Trade and Industry, the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA). PEZA is the government agency tasked with the establishment, operation and management of economic zones (ECOZONE) like FPIP throughout the country.

PEZA is committed to provide the highest standards of service and grant excellent benefits to registered enterprises. Development of these ECOZONEs conforms with the requirements of a modern industrial area. As a service-oriented organization, PEZA sees to it that all various services and forms of assistance are made available to ECOZONE enterprises.

Under Republic Act No. 7916, otherwise known as "the Special Economic Zone Act of 1995", registered Export or Enterprises operating in ECOZONES or Special Economic Zones shall enjoy the following incentives:

  • Income Tax Holiday (ITH) for 4 years to a maximum of 8 years
  • After the lapse of ITH, exemption from national and local taxes; in lieu thereof, special 5% tax rate on Gross Income
  • Exemption from duties and taxes on imported capital equipment, spare parts, materials and supplies.
  • Tax credit for import substitution
  • Exemption from wharfage dues, export tax impost or fees
  • Tax credit on domestic capital equipment
  • Tax and duty-free importation of breeding stocks and genetic materials
  • Tax credit on domestic breeding stocks and genetic materials
  • Additional deduction for training expenses (labor and management)
  • Permanent resident status for foreign investors and immediate members of their families
  • Employment of foreign nationals
  • Additional deduction for labor expense (50% of wages corresponding to increment in number of direct labor subject to certain conditions)
  • Exemption from SGS inspection
  • Simplified import - export procedures
Other investor information is available at http://www.gov.ph, http://www.peza.gov.ph and http://www.boi.gov.ph

back to top

PROCEDURE


Export Manufacturing Enterprise

Source : Philippine Economic Zone Authority (PEZA)

back to top