Business Guide: Top Industries in the Philippines for Foreign Investors in 2020
The Philippines is rich in human and natural resources. Furthermore, the country is positioned strategically in the Southeast Asian Region, where you can reach other Southeast Asian Countries in a matter of 2 hours. Direct flights are offered as well to other continents such as North America, Europe, and Africa. The country has a good tropical climate, which is a good place of escape for countries experiencing the harsh winter. The living conditions and the potential for growth make the Philippines a great country for foreign investors in 2020.
The government is utilizing whatever resources it has to make the country develop and prosper. However, every development has a price. The country has to open its gate for investors and make business partners so whatever the country is lacking can be filled up by interested parties who can benefit as well because the investments they’re going to put in the country will earn them money in time.
So, what industries exactly should foreigners invest in?
The Department of Trade and Industry listed the Top Industries in the Philippines for Foreign Investors in 2020. They are the following in no particular order:
Agriculture is one of the top industries of the Philippines. The soil is very favourable to planting while the climate is a tropical one, which gives the country more time for sunlight. Between the years 2012 and 2017, the Agricultural sector had a growth of 1.1.%
The majority of the agricultural crop yield in the Philippines comes from rice, pineapple, sugarcane, cacao, banana, coffee, corn, coconut, mango, cassava, and rubber.
Infrastructure in the Philippines is developing at an astonishing rate.
President Rodrigo R. Duterte has given a higher budget and priority to infrastructure. He appropriated a budget of 5-7% of the GDP in his term compared to the previous administration of 3%.
The country is in need of investors to construct real estates, roads, bridges, and functional buildings all over the country.
Manufacturing is the business of providing the masses everything from the food that we eat, to the books that we read, and to the appliances we use at our home to make our lives convenient.
Different Manufacturing Businesses have different schemes. Some of them manufacture on a day-to-day basis like food manufacturers which includes cakes, soft drinks, pizzas, etc. while some manufacture on a scheduled basis like books.
The Philippines has a lot to offer to investors when it comes to manufacturing. The country can supply skilled workers to this industry with comparatively lower labor costs than other countries. Not to mention, Filipino workers are also better English speakers. Among the top manufacturing industries include chemicals, aerospace, furniture, automotive, and design-oriented products.
Business Process Outsourcing (BPO)
The Philippines is considered as the BPO capital of the world. Why not? There are an estimated 90 Million English Speakers in the country. The Philippines now has more BPO Agents than India, which used to be the largest supplier of BPO Agents.
What makes the Philippines a country of investment when it comes to BPO? First, the BPO facilities in the country are not just concentrated in Metro Manila, which is the Capital Region, but also to the rest of the country like Baguio, Cebu, Dumaguete, etc. Second, the country provides better tax and tariff programs to foreign investors. Last but not least, Filipino workers are hardworking and very adjustable in every work conditions.
While the number of working people is increasing, the demand for food, entertainment, and traveling is increasing as well. People find tourism as an activity that relieves them from stress.
The Philippines is a country of choice for international travelers. As a tourist destination, the country has improved a lot in the last 10 years. There are so many places to visit now in the Capital Region, Metro Manila, and the rest of the country. Some of these places include Luneta, SM Mall of Asia, Aseana Complex, Baguio, Boracay, Cebu, Bohol, etc.
Foreign investors have a lot of choices when it comes to investing their money in tourism in the Philippines. They can build their own food businesses, provide luxury buses, and build their own hotels. As the number of tourists increases, there is a need for more business establishments.
Renewable Energy and Power Generation
The Department of Trade and Industry Secretary announced a couple of years ago that the Philippines needs 3 Trillion Pesos investments (Approx. 62 Million USD) in this particular sector. The sector obviously has great potential, as every company and residential houses rely on energy for their operation.
Some of the renewable energy sources that the country needs include geothermal, biomass, solar, wind, ocean, and wind.
If you’re planning to invest in Top Industries in the Philippines for Foreign Investors in 2020, we at the 3E Accounting can help with Business setup in the Philippines. You can contact us directly if you have inquiries.