by admin | Jan 26, 2018 | ASEAN agenda, Business, Headlines
NEW DELHI – Department of Trade and Industry (DTI) Secretary Ramon Lopez encouraged Indian businessmen and delegates from the Association of Southeast Asian Nations (ASEAN) to ride on the ongoing Philippine (PH) growth story.
During the PH-India Business Forum on 24 January 2018, the country’s trade chief presented Dutertenomics — the socioeconomic policies of President Rodrigo Duterte—to encourage investors to partner with PH, which will help in creating additional value for their businesses and boost income-generation operations.
“The initiatives under Dutertenomics can help support investors by creating an environment where companies can do business swiftly and efficiently,” said Sec. Lopez, stressing that ongoing infrastructure projects strategically link the country’s industries. These, in turn, will further power the growth of an already strong economic base.
“Our ‘Build Build Build’ infrastructure program will facilitate greater trade and investment as it opens up access to new markets, while minimizing trade and logistics cost,” he added.
Under Dutertenomics, the government’s massive ‘Build Build Build’ program aims to develop massive and efficient infrastructure projects to create more opportunities in the countryside by developing more regional growth centers.
The trade chief also highlighted DTI’s Trabaho, Negosyo, Kabuhayan, at Konsyumer initiative as well as the inclusive, innovation-led, industrial strategy (i3s) as support for the socioeconomic agenda of President Duterte. The i3s complements the government’s thrust to promote an innovation ecosystem in PH, with different sectors partnering to generate more jobs and improved business opportunities. This sets up the environment for MSMEs to grow, with full assistance in training, product and market development, equipment and financing from government.
With the significant growth of 6.9% in the country’s GDP and 39% growth in the Board of Investments (BOI) approved investments, Sec. Lopez urged investors to take part in the country’s economic growth.
According to the trade chief, investors can fully recoup their investments as their businesses enjoy the benefits of operating in a fully-industrialized and secure business environment. They can also enjoy PH’s stable macroeconomic fundamentals, the educated English-speaking workforce, the demographic sweet spot that presents an enlarging consumer base, and wider market access thru preferential trade agreements.
Sec. Lopez shared that the Philippines’ greatest asset is its people, highlighting the large pool of highly qualified and educated work force that is strongly customer-oriented, highly trainable with fast learning curve, adaptable to universal cultures and with high level of commitment and loyalty.
“The hallmark of Dutertenomics is to attain growth with equity. That is, addressing inequality while reducing poverty across the regions towards improved quality of life for all,” he added.
Sec. Lopez also shared the potential of the Regional Comprehensive Economic Partnership (RCEP) as key to opening a huge integrated market base of 3.5 billion with ASEAN, plus its six Dialogue Partners (India, South Korea, China, Japan, Australia and New Zealand).
by admin | Jan 22, 2018 | Business, Headlines
MANILA – The Department of Trade and Industry (DTI) welcomed another milestone for Philippines (PH) and European Union (EU) trade relations as export products hit a 31% growth wherein EUR 2 billion-worth of PH products were exported through EU’s Generalised Scheme of Preferences Plus (GSP+).
“We are pleased to hear of the significant increase of our exports entering the EU market through the GSP+. This trade preference has benefitted several communities in the Philippines and opened opportunities for our Micro, Small, and Medium Enterprises (MSME). In the same manner, it has allowed our MSMEs to be more competitive in the local and foreign market,” said Trade Secretary Ramon Lopez.
The 31% of total PH merchandise exports to the EU amounted to USD 8.4 billion in 2017. This made the EU the third largest export partner of PH.
In the EU Trade Preferences Monitoring Report released on 19 January 2018, the robust trade relations between the two parties was highlighted with EUR 2 billion-worth of PH exports in 2017 benefitting from the GSP+ compared to the EUR 1.66 billion in 2016.
A major increase was in food and agriculture exports such as animal products, fish and related products, prepared food, and edible fruits. Likewise, automotive parts, leather, textile, and footwear showed significant growth.
Since the beginning of the preferential treatment in 2014, both PH and EU have enjoyed the mutual benefits of GSP+ by letting Filipino MSMEs participate in a bigger value chain and giving the EU market more options for their consumers.
Local communities can take advantage of the export opportunities under the GSP+, like fishermen in General Santos and coconut farmers in Lanao del Norte, as their products can join those by other MSMEs in contributing to EU’s dynamic market.
“We acknowledge that the GSP+ has been an important tool in making the country’s economic growth more inclusive. It also encourages investors to come in and provide job opportunities to many Filipinos,” Sec. Lopez said.
Meanwhile, dialogue on the expansion of the trade preference is ongoing between PH and EU, with both parties continuing to engage through relevant government agencies and other existing mechanisms.
by admin | Jan 15, 2018 | Business, DTI Updates
The Government’s Inter-agency Task Force on Ease of Doing Business (EODB) is speeding up reforms to improve the country’s competitiveness.
DTI Secretary Ramon Lopez reported that the strategy is to pursue a whole of government approach where all instrumentalities of government involved in business regulations are taking unified action in simplifying government processes and making them more business-friendly.
“Remember that Competitiveness and Ease of doing business is number 3 in the President’s socio-economic agenda. The executive branch, both National government agencies, and Local Government Units, and the legislative branch are working double time so that businesses could benefit from these reform initiatives.” DTI Secretary Ramon Lopez said.
The DTI Secretary reported on the latest reforms initiated by the Executive Branch
- In November 2017, the Securities and Exchange Commission implemented the Company Registration System (CRS) which significantly reduced the processing time and procedures in company verification and registration. The system also integrates the issuance of Taxpayer Identification Number (TIN), and employer numbers from Social Security System (SSS), Pag-IBIG Fund, and Philhealth.
- In December 2017, Quezon City Mayor Herbert Bautista issued an order establishing One-Stop Shops (OSS) for business permits which will facilitate registration of new businesses. The OSS is now operational at the QC Hall.
- To speed up the issuance of construction permits, the Departments of Public Works and Highways (DPWH), the Interior and Local Government (DILG), and Information and Communication Technology (DICT) and the DTI issued a joint circular which prescribed standards and procedures in the issuance of building permits, certificates of occupancy and other construction-related permits.
A unified employee enrollment form and system will soon be implemented by the Social Security System, Pag-IBIG and Philhealth for new corporations registered with the Securities and Exchange Commission that will consolidate enrollment of new employees at a single portal or at any one of the social security agencies.
The DTI Secretary expressed confidence that Congress will soon pass the Expanded ARTA/EODB bill which will significantly address red tape, and expedite business related transactions in the country. Secretary Lopez mentioned other important legislation such as the amendment of the Corporation Code, the passage of the Secured Transactions Act, which will improve Philippines ranking in Starting a business and Getting Credit indicators in the Doing Business Survey, respectively.
DTI also noted reforms in the judicial branch. The full implementation of the e-Court system by the Supreme Court is seen to enhance the Philippines’ Enforcing Contracts scores. We are looking forward to the issuance by the Supreme Court of the guidelines on e-notarization also expected to create positive results in the competitiveness ranking.
Last year, the Philippines slipped 14 notches to 113th rank in the Doing Business report published by World Bank-International Finance Corporation. It measures the ease of doing business across ten processes which a firm must undertake over its typical life cycle.
“Reforms must happen across government to achieve our goal to become top 20% in world rankings by 2020”, according to Secretary Lopez, Chair of the Doing Business Task Force.
by admin | Jan 12, 2018 | Business, National News
Recent preliminary report from the Philippine Statistics Authority (PSA) showed that Philippine merchandise export performance continued on a positive trajectory increasing by 10.79% in the first 11 months (January to November) of 2017 compared to the same period in 2016, an analysis confirmed by the Department of Trade and Industry (DTI).
From January to November 2017, the value of merchandise exports was shared almost evenly by electronics and non-electronics with 51.38% and 48.62%, respectively.
Exports of Philippine electronic products increased remarkably by 10.84% in the first 11 months of 2017. This was achieved on the back of the robust performance of six out of the nine subsectors of the industry which contributed 97.95% share in the cumulative total value of the industry.
Meanwhile, non-electronic goods also increased significantly by 10.73% in the first 11 months of 2017, backed by positive growth of a wide range of sectors in the non-electronics category. Topping the list were Forest Products with triple-digit growth of 560.90%. Other contributing commodities exhibited double-digit increases including mineral products (76.12%), sugar and products (47.77%), footwear (47.43%), coconut products (37.61%), non-metallic mineral manufactures (32.17%), and furniture and fixtures (26.27%). Exports of garments also increased by 3.00%, while Travel Goods and Handbags at 1.53%.
“The increase of exports sales for some non-electronic goods this year may be viewed as a result of the sector-focused intervention included in the 2015-2017 Philippine Export Development Plan (PEDP),” said DTI Trade and Investments Promotion Group Undersecretary Nora K. Terrado.
The leading destination of PH merchandise exports for the first 11 months of the year was still the combined markets of PROC and HK SAR. Shipments to this combined market, with a share of 24.49%, increased by 20.99% in value. The next leading destination is Japan with 16.42% share, followed by United States of America (USA) with 14.60% share in total exported goods.
Exports to other top 20 trade partners of the Philippines also showed double-digit growths, ranging from 10.13% to 66.36% YTD; and from 16.00% to 56.75% YOY.
Meanwhile, exports to the United Arab Emirates expanded by 26.96% YOY and 103.6% YTD, respectively. However, these countries account for very small shares in PH exports, ranging from shares of only 0.56% to 2.53% of total PH exports.
The DTI, through its Export Marketing Bureau, implements various programs that assist and cater to the needs of Philippine exporters across the country
by admin | Dec 29, 2017 | Business, Headlines, Negosyo Center Updates
As part of the Trabaho, Negosyo agenda of the administration, which puts center the micro, small and medium enterprises (MSMEs) and job generation, the Department of Trade and Industry (DTI) has set its sight on providing both for Filipinos.
This has become prevalent with the Department of Trade and Industry (DTI) reported the growing interest and enthusiasm of Filipinos in venturing into business as more and more entrepreneurs turn to Negosyo Centers for assistance for MSMEs and aspiring entrepreneurs.
In the 2017 Negosyo Center year-end performance monitoring report, a total of 614,417 entrepreneurs have been assisted by these centers—leapfrogging from the June 2017 performance report of 595,573 clients assisted since the inception of Negosyo Centers in 2014.
DTI Regional Operations Group (DTI-ROG) Undersecretary Zenaida Maglaya stressed that the huge surge of entrepreneurs assisted was due to the government’s support for MSMEs and the advancing of MSMEs as economic movers of the country.
“2017 has been the year for Filipino MSMEs as the country hosted the ASEAN. With ASEAN, MSMEs were given the much needed attention in order to advance the country’s economic agenda,” Maglaya said.
With more MSMEs turning to Negosyo Center for assistance, Maglaya attributed the entrepreneurship surge to the agency’s continuing drive to introduce entrepreneurship as a steady source of income, while also recognizing the agency’s partnerships with other national government agencies, and non-government organizations (NGOs), local government units, and big corporations.
“We’re very grateful to Filipinos that they realize the huge help they get from entrepreneurship and how business contributes to society by providing employment and lifting the economy,” Maglaya said.
Philippine MSMEs account for 99.5% of the total number of established businesses and employ 62.8% of the country’s workforce, contributing substantially to the country’s manufacturing output and total employment, making it critical engines of economic growth and development.
To encourage aspiring entrepreneurs, Negosyo Centers have also conducted 11,043 skills, managerial and entrepreneurship training programs, the report showed.
Maglaya explained that Negosyo Centers are very effective in reaching out Filipinos in the countryside with DTI tallying a total of 718 centers throughout the country.
Under the current administration, a total of 343 Negosyo Centers were established, she added.
The Republic Act No. 10644 or the Go Negosyo Act aims to help micro, small and medium enterprises (MSMEs), promote ease of doing business, facilitate access to grants and other forms of financial assistance, Shared Service Facilities (SSF) and other equipment, and other support for MSMEs through national government agencies (NGAs), ensure management guidance, assistance and improvement of the working conditions of MSMEs; and facilitate market access and linkaging services for entrepreneurs.
by admin | Dec 15, 2017 | Business, Headlines
On the sidelines of the meeting of the 11th Ministerial Conference of the World Trade Organization, DTI Secretary Ramon Lopez discussed with an Argentinian investor how to expand sourcing of local seaweeds. Sec Lopez met with one of the owners of food ingredient-producer Farmesa, which has a plan to set-up a seaweeds processing plant in the Philippines.
The Philippines will be their first manufacturing operations outside Argentina, according to Mr. Agustin Perez, Head of Farmesa’s International group. Mr. Perez confided that aside from the big potential of locally sourcing seaweeds, he finds the Philippines business environment stable and the economy very dynamic, which add on to his confidence in pursuing their growth story in the Philippines. He cited the country as one of the fastest growing economies in the world.
FARMESA, is an Argentinian family enterprise that specializes in the R&D, production, and exportation of food additives and ingredients to several food companies worldwide. Sec. Lopez reaffirmed that their expansion plans can bring them closer to both the source of their main ingredient seaweeds, as well as the market of their products in the Philippines and Asian region.
They recognize as well the potential of harnessing the FTA and GSP trade arrangements that the Philippines have with other countries in the region as well as in US and EU.
Secretary Lopez lauded Farmesa for their decision to choose the Philippines ahead of other candidate countries for the company´s expansion. The availability of raw materials plus the strategic location of the country factored highly in the country’s evaluation. They currently had to source seaweeds from several Asian countries and bring it to Argentina for processing. Now they can focus their sourcing in the Philippines and do the processing right in the country. While they have existing client companies, they plan to export bulk of their production.
Secretary Lopez reassured the investor of President Duterte’s commitment that there will be no corruption in their dealings with government and to ensure their ease of doing business, the full assistance of the Board of Investments and PEZA will be extended when they start to implement their plans to produce and export.
Also in the meeting were the Board of Investments Managing Head, Undersecretary Ceferino Rodolfo, and DTI’s Mexico-based Commercial Counselor for Latin America Vichael Angelo Roaring.
