The Philippines is one of the world’s fastest-growing economies, which is why many foreign corporations — especially those based in developed nations — are keen on expanding their business in the Southeast Asian nation.
One of the main reasons behind this is the Philippines boasts an abundance of natural resources, with the country counted among the top producers of important minerals such as gold, copper, and chromite. Not only that, but it is a member of the Association of Southeast Asian Nations or ASEAN. The country is in the process of increased integration in both the regional and global markets.
Aside from that, the Philippines has other advantages over other Southeast Asian countries that foreign investors might want to take a look at, such as the following:
The Philippines is globally renowned for having a pool of talent that has the traits and skills most companies are looking for. Filipino workers have a reputation for dedication and being proficient at their jobs; they are also known to be adaptable and resilient.
In addition, the country has a literacy rate of 94.6%, one of the highest in the world. Many Filipinos display an excellent command of the English language, making communication — and ultimately, working — with them easy and accurate.
Starting a business in the Philippines is viable given that they are receptive to new products or services and the internal structures to take advantage of them. Indeed, the Philippines has a robust online economy. Both the middle and working class demographic frequently utilize the internet to make purchases and conduct business transactions. Cash may still be king but other forms of transactions are now widely available.
One of the advantages that the Philippines has is its location, which puts it within four hours of flying time from the major capitals of the Southeast Asian region.
Because of this, the Philippine is considered to be a critical entry point to the ASEAN market, as well as an important pitstop for global shipments, with the country’s major port — the Port of Manila — handling an estimated 21,000 vessels and over 75 million tons of cargo annually.
While the Philippines may still be lacking in some aspects related to infrastructure such as a more efficient transport system, the country’s other assets, such as its ports, business centers, and special economic zones have proven themselves to be valuable to business operators.
The national government is currently fast-tracking several projects — an endeavor known collectively as the “Build Build Build Program”. These projects have a focus of improving the economy by making business ventures easier and more efficient in the Philippines.
One major advantage that the Philippines has over its neighbors is its openness to foreign investors — especially those that are part of industries marked by the government for development. This means that foreign investors are likely to get numerous incentive packages should they decide to set up a business in the Philippines.
The Philippine government, through its Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), provides multinational companies incentives such as income tax holidays, duty-free imports, tax exemptions and deductions, and superb rates rates on the final tax of gross income. Not only that, but companies who choose to operate within the country’s Special Economic Zones are subject to only 5% overall tax rates.
Multinationals also get to enjoy other perks, more straightforward customs procedures, and the quick issue of resident visas to investors and their families.
Find these perks attractive? Setting up a company in the Philippiness is easy with the FilePino team behind you.
FilePino offers a comprehensive range of professional business services, all of which are designed to help you get a set up and run your business in the Philippines.
Contact us today at +1.806.553.6552 or send us a message here for more information.