Trade, Industry & Economy

economic profile

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Trade, Industry and Economy

The Philippines is blessed with an abundance of rich, productive soil and tropical climate in which many plants grow quickly and well.

Makati Business Center

      Agriculture is the principal industry. Its agricultural sector is the backbone of the economy, employing 10.16 million of the country's labor force, generating 23.2 percent of the gross domestic product and contributing significantly to the nation's total exports. Products include rice, sugar, abaci, coconut, banana, corn, fruits and vegetables. Other crops in the billion peso (i.e., the value of their output exceeded the billion peso mark) are coffee, mangoes, tobacco and rubber.
     Although the United
States has long been its major trading partner, the Philippines is at present actively establishing trade relations with other countries.
     Investing in the Philippines gives you a distinct advantage. In this era of stiff global competition, getting ahead means cutting down on costs, obtaining superior service, and earning good returns. The Philippines gives you this edge. These are the operative factors:
     1. Strategic location. The Philippine archipelago is located at the southern rim of the Asia mainland. It lies at the crossroads of eastern and western business, trade and culture.
     2. Highly educated professionals and workers. Filipinos are among the best educated and most easily trainable people in Asia. They are universally conversant in English and are capable of performing the simplest to the most complicated tasks with ease.
     3. A democratic government. The country's leaders are committed to free enterprise and are highly receptive to foreign participation in the country's development.
     4. Growing markets. This land of over 70 million people is a large and demanding local market. The export market - practically the rest of the world - remains insufficiently served. Both offer vast opportunities for your productive undertakings.
     5. Rich natural resources. Still vast and not fully exploited, the country's wealth is being carefully managed.
     6. Liberal policies and procedures. Business regulations are are among the most flexible and receptive to the entry of foreign investments. The Philippines allows 100% foreign ownership of many enterprises and assures full repatriation of earnings and capital.
     7. Expanding infrastructure. Programs to rapidly expand transportation, communication, and other support facilities are underway.
     8. World-class living conditions. You can obtain the best living areas, business facilities, leisure and recreational amenities, and other requirements, at the most reasonable costs.

Philippine economy ranks as world's 31st most competitive

     The Philippine economy ranks as the world's 31st most competitive among a list of 46 led by United States, according to a Swiss management school in their report on world competitiveness.
     In the World Competitiveness Yearbook presented, Lausanne International Institute for Management Development listed the Philippines behind Spain and Thailand but ahead of Argentina and Colombia.
     Of the 14 Asian countries in the list, the Philippines only came ahead of India (38), Greece (40), Indonesia (41).
     Three other Asian countries -- Singapore, Hong Kong and Japan -- took the second, third and fourth, respectively behind the United States.
     The Russian economy was the last in the list, following South Africa and Vanezuela.
     The rest of the countries in the top 20 are Denmark, Norway, Holand, Luxembourg, Switzerland, Germany, New Zealand, Canada, Chile, Sweden, Finland, Austria, Belgium, Taiwan and Great Britain and France.
     Australia, Ireland, Malaysia, Israel, China, Korea, Italy, Spain and Thailand complete the list of countries which have economies more competitive than the Philippine economy.
     Bringing up the rear are Argentina, Colombia, the Czech Republic, Turkey, Portugal, Brazil, India, Hungary, Greece, Indonesia, Mexico, Poland, South Africa, Venezuela and Russia.

Historical background

     The Philippines had some commercial relations with neighboring countries of the Far East long before contact with West was established. Goods from Southeast Asia and Western world were carried by Arabs traders to the Philippines through northern route, while Chinese goods, such as glass beads and porcelain dishes, found their way into the Philippines through the southern route. Philippine goods were brought to the Chinese mainland through the port of Canton by Arab ships.
     By the middles of the 14th century, other countries of the Far East had begun to take an active interest in Philippine trade. Cambodia and Champ in Indo-China, traded their porcelain products with Philippine wares. A little later, Annam, Siam and Tonkin also began to trade with the Philippines.
     In the 15th century, upon the establishment of the Malaccan Empire, Islam began to spread to the southern Philippines. Indo-China trade diminished and the Chinese traders pressed back by the Muslims, sought new rading routes to those parts of the Philippines where Islam had not yet gained a foothold. Later on, however, the Chinese were allowed to trade with the areas under the sway of Islam.
     When the Spaniards came to Luzon in 1570, they found Mohammedan Filipinos actively engaged in commercial intercourse with Chinese and Indo-Chinese traders.