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>>Listen to the Market Brief for The Philippines
>>See the fact sheet for The Philippines
This is a great time to look at export opportunities in the Philippines, the current Chair of the Association of Southeast Asian Nations (ASEAN) and host of the recently concluded Leaders' Summit. The Philippines is a market where American products and services are well known and trusted, owing to the very close relationship between the U.S. and the Philippines over the past 100 years.
The Philippine Flag |
The Philippines is an archipelago of 7,107 islands. It stretches from the south of China to the northern tip of Borneo. It is centrally located in an incredibly dynamic ASEAN region. The country is divided into three geographical areas: Luzon, Visayas, and Mindanao than contain vast natural resources including timber, petroleum, nickel, cobalt, silver, gold, salt, and copper.
With 91 million inhabitants, the Philippines is the world’s fourth largest English-speaking nation, and the 14th largest labor force in the world. The country has over a hundred ethnic groups and a wide diversity of religions, cultures, and languages.
The Philippines also played host to the ASEAN Business and Investment Summit in December 2006. More than 400 business leaders from the Philippines, from ASEAN and from beyond, converged in Cebu City, Philippines, and provided the business sector’s input into the dialogue and the recommendations to leaders on the path to ASEAN economic integration. Asia is recognized as the fastest growing region of the world today and that the pace of growth within Southeast Asia—primarily the ASEAN region—continues to quicken and is respectably above global averages, making the Philippines and ASEAN an attractive—and safe—business destination.
 | Area: 300,000 sq. km (117,187 sq. mi.); 7,107 islands |
| Major cities: Manila, Davao, Cebu and Cagayan de Oro |
| Population (2007 estimate): 91.077 million; estimate for 2006: 89.5 million. |
| Ethnic groups: Malay, Chinese. |
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Economy
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Philippines Map |
Market Overview The U.S. remains the Philippines' largest trading partner with over $16 billion in two-way trade, and the largest investor with $6 billion in assets. Increased export revenue, investment inflows, and foreign remittances have helped produce a current account balance of $4.9 billion in 2006. In 2006, the Philippines ranked as the United States' 26th largest export market, 28th largest seller to the U.S. market. Across all sectors, the Philippine market has a strong affinity for U.S. products and technology, which it equates with quality and value. |
Philippine Symbol – the Jeepney |
Driven by robust consumer demand, stronger exports and agricultural output, and investment in information technology, the Philippine economy experienced a GDP growth of 5.4 percent in 2006. The President has targeted 7% GDP growth in 2007. The Philippine Stock Market recently hit a 15-year high and the Peso has appreciated more than 10% against the dollar, thus making imports more attractive. |
Philippines – Chocolate Hills |
The Philippine Government led by President Gloria Macapagal-Arroyo has worked since 2003 to improve the economic situation through tight control of government expenditures, and more recently, new tax revenue measures. The Government intends to boost depressed spending levels for infrastructure and vital social services in 2007 after years of fiscal austerity while continuing on its deficit-reduction track. Annual remittances from overseas Filipino workers expanded by 25 percent to US$10.7 billion and exceeded the US$14.0 billion in 2006. | |
The inflows contribute significantly to the country’s international reserves, spur consumer demand, and help stimulate investment, particularly in real estate. Over the past five years, investment in contact centers and other business process operations such as software development, animation, transcription, has grown dramatically, and will continue to do so through 2010. From 1,200 seats in 2000, the BPO industry has reached 250,000 in 2006, driven by a highly English-literate workforce with a strong customer service orientation. The industry is projected to double by 2010. Other key growth sectors targeted by the Philippine Government include mining, medical tourism, and energy. | |
| Information Technology continues to be the Philippine’s fastest growing industry, with expanding opportunities for personal computers and peripherals, private automatic branch exchanges (PABX), enterprise software and network application tools. |
| Expansion and upgrade of Electric Power Systems through 2014 will create stable demand for equipment and accessories ranging from valves, boilers, steam generators and turbines to transmission/ distribution hardware and lines. |
| The Philippine Mobile Telecommunications market will continue exponential growth through 2007, generating demand for communications hardware and software ranging from base stations and mobile switching equipment to network management tools and voice management systems. |
| Best prospects for the expanding Building Products industry include specialized products such as waterproofing applications, specialty insulations and fittings. |
| With growth of U.S. market share in the new car segment, significant opportunities in the $2.6 billion Automobile Aftermarket segment exist for U.S. manufacturers of aftermarket engines, auto body parts and mechanical equipment. |
| Demand continues to grow for Consumer-Ready Food and Beverages due to retail expansion and liberalization, GDP growth and a preference for U.S. brands. Best product prospects include dairy, fresh fruits and vegetables, frozen vegetables, meats, nuts, processed food, pet food and wine. |
| Expansion of the $10 billion Food Processing industry means increased opportunities for wheat, dairy products such as milk and whey powders, processed fruits and vegetables, beef and beef products, and nuts. |
| The Philippine mining sector offers potential for resource extraction activities. Opportunities await U.S. suppliers of mining equipment, technology and service expertise to be utilized in proposed mining activities all over the country. |
Leading Sectors for U.S. Exports
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Z Medica Presents the Thomas Doc Eagles Award to Philippine Army Solder
U.S. company, Z-Medica Inc., based in Wallingford, Connecticut, is the manufacturer of QuikClot, a hemostatic agent which is, thanks to the assistance of Commercial Service Manila, used on the battlefields in Iraq.
A Philippine Beach | |
CS Manila Led the Path for Nobel Systems, Inc.’s Business in the Philippines
Mr. Michael Samuel, president of Nobel Systems Inc., was one of the trade mission members during the 2006 Environmental Technologies Trade Mission to Southeast Asia, and made some very important contacts which lead to a new exporting venture.
Philippine Symbol – Makati CBD |
Market Entry Strategy Agents/distributors are commonly used in the Philippines The Philippine business environment is highly personalized. A proper introduction by a trusted intermediary is the best way to enter this market. The U.S. Commercial Service performs this function for American manufacturers (and their representatives) through our business matchmaking programs. U.S. firms seeking agents or distributors in the Philippines are encouraged to use the services of the U.S. Commercial Service, Manila. For more information, click Services for U.S. Exporters. |
Market Research
U.S. Commercial Service Manila has prepared market research on selected key industries. These market reports will provide you with market overview, sub-sector and commercial opportunities for U.S. companies for a varied of industry sectors. A list of these market research reports can be found on the U.S. Commercial Service site.
| U.S. Catalog Show Philippine Road Show, 2007, Cebu City and Mindanao - Expand sales in the Philippine market through the U.S. catalog road show, showcasing catalogs of American companies in key cities in the Philippines! |
| Commworld 2007, August 16-18, 2007, World Trade Center, Manila – Increase your export sales and exhibit in the most comprehensive communications and broadcast technology event in the Philippines. |
For more information on other CS Philippines’ news and events, please visit the U.S. Commercial Service Philippines web site.
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Contact Us Judy R. Reinke, Commercial Counselor Tel: +632-888-4088 Fax: +632-888-6606 Email: Judy.Reinke@mail.doc.gov; Thomas.Brennan@mail.doc.gov |
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