JETRO Business in Philippines

8/13/2019 JETRO Business in Philippines

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Filipino Business Competitiveness

in Comparison to Asian Countries

February 2013

JapanExternal

Trade

Organization

(JETRO)

Manila


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CONTENTS1. Profit Center

1.1 Estimated Operating Profit in 2012

1.2 Estimated Operating Profit in 2012 (More than 50% of Business is from Export Account)

2. Good Management

2.1 Difficulty in Recruiting General Staff

2.2 Number of Strikes/Lockouts

2.3 Trouble of Time-consuming Customs Procedures

2.4 Trouble of Time-consuming Administrative Procedures

3. Reasonable Salary

3.1 Salary Base up Rate (2012-2013)3.2 Annual Salary for Manufacturing Staff

3.3 Annual Salary for Manufacturing Engineer

3.4 Annual Salary for Manufacturing Manager

3.5 Annual Salary for Non-Manufacturing Staff

3.6 Annual Salary for Non-Manufacturing Manager

4. Incentives

Reason for Embarkation to each City

5. Business Challenges in the Philippines

5.1 Business Challenges in Asia

5.2 Business Development Plan in Next 1-2 Years


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1.ProfitCenter


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1.1EstimatedOperatingProfitin2012

71.9

74.4

72.5

60.2

57.2

45.0

41.2

14.9

11.7

10.5

19.5

19.1

15.0

20.3

13.2

13.9

17.020.3

23.7

40.0

38.5

0% 20% 40% 60% 80% 100%

Philippines

Indonesia

Thailand

Vietnam

China

Myanmar

India

Profit

BreakEvenLoss

(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO

Note:Surveywas

conducted

on

OctNov.,2012


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1.2EstimatedOperatingProfitin2012

(Morethan

50%

of

Business

is

from

Export

Account)

72.4

69.8

63.5

58.3

54.6

55.3

17.2

23.3

13.5

21.5

20.1

15.8

10.3

7.023.020.1

25.3

28.9

0% 20% 40% 60% 80% 100%

Philippines

Indonesia

Thailand

Vietnam

China

India

Profit

BreakEvenLoss



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2.GoodManagement


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2.1DifficultyinRecruitingGeneralStaff

0 10 20 30 40

Philippines

Indonesia

Vietnam

Myanmar

Thailand

China

34.4

20.0

13.8

6.8

4.3

Unit:%


35.5


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2.2NumberofStrikes/Lockouts

Philippines

Thailand

Vietnam

India

(Unit:Number

Source)PhilippinesNational ConciliationandMediationBoard

ThailandDepartmentofLabourProtectionandWelfare

VietnamMinistryof

Labor,

War

Invalids

&

Social

Affairs

IndiaMinistryofLabour&Employment,LabourBureau


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2.4TroubleofTimeconsuming

AdministrativeProcedures

0 20 40 60 80 100

Thailand

Philippines

Indonesia

Vietnam

Myanmar 85.0

61.5

43.8

34.5

20.6

Unit:%



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3.ReasonableSalary


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3.1SalaryBaseupRate(20122013)

Against

Previous

Year

0 5 10 15 20

Philippines(97)Malaysia(176)Thailand(618)

China(707)India(231)

Indonesia(139)Vietnam(215)

Note: Figuresin()indicatesthe numberofcompanieswhorespondedinthissurvey

Unit:%


17.5

17.0

11.8

9.4

6.5

5.3

5.2


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3.2AnnualSalaryfor

ManufacturingStaff

0 2000 4000 6000 8000

Vietnam(133)Indonesia(82)

India(75)Philippines(50)Malaysia(138)Thailand(317)

China(396)

5,942

4,581

4,577

4,551

2,602

6,734

6,704

Note:Annual

Salary

meansthetotalamount

receivedperemployee

(basesalary,allowance,

socialsecurity,overtime,

bonus,etc).

US$



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3.3AnnualSalaryfor

ManufacturingEngineer

0 5000 10000 15000 20000

Vietnam(118)Philippines(49)

Indonesia(73)India(76)

China(363)Thailand(305)Malaysia(128) 14,451

12,520

11,321

10,8398,629

7,636

5,441

US$



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3.4AnnualSalaryfor

ManufacturingManager

0 5000 10000 15000 20000 25000 30000 35000

Vietnam(113)Philippines(47)

Indonesia(77)China

(372)

India(88)Thailand(309)Malaysia(128) 30,083

27,204

22,091

19,761

18,147

17,498

12,245

US$



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3.5AnnualSalaryfor

NonManufacturing

Staff

0 5000 10000 15000

Vietnam(64)Indonesia(53)

Philippines(37)India(116)

Malaysia(60)China(243)Thailand(211) 13,46413,278

13,255

9,536

7,888

7,492

6,755

US$



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3.6AnnualSalaryfor

Non

Manufacturing

Manager

0 5000 10000 15000 20000 25000 30000 35000

Vietnam(53)Philippine(36)Indonesia(43)

India(107)Thailand(191)

China(214)Malaysia(59) 31,217

29,165

28,448

24,796

22,621

20,169

16,422

US$



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4.Incentives


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ReasonforEmbarkationtoeachCity

Jakarta

3.1%

Manila

26.9%

Bangkok

21.4%

Hanoi

21.1%Incentives

1990's

2000's 2.8% 26.1% 8.1% 14.5%

1990's 0.0% 3.0% 3.6% 0.0%FreeTradePolicy

2000's 2.8% 2.9% 5.4% 3.6%

1990's 25.0% 12.7% 5.4% 7.9%Well-maintainedTraffic

Infrastructure

2000's 22.2% 4.3% 2.7% 5.5%

1990's 9.4% 16.8% 26.8% 15.8%MarketVolume

2000's 11.1% 27.5% 21.6% 18.2%

1990's 9.4% 2.5% 8.9% 15.8%Requestfrom

Assembler 2000's 5.6% 1.4% 5.4% 10.9%1900's 0.0% 5.1% 1.8% 5.3%

CheapLaborCost2000's 0.0% 7.2% 5.4% 1.8%

Source:SurveyofERIA,2007

15


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5.BusinessChallengesinthe

Philippines


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5.2BusinessDevelopmentPlanin

Next

1

2

Years

48.2

52.3

64.2

65.9

77.3

83.6

50.042.0

33.4

32.1

21.0

15.1

1.8

0.4

0.4

1.8

4.0

1.9

1.6

1.7

1.3

0% 20% 40% 60% 80% 100%

Philippines

China

Thailand

Vietnam

Indonesia

India

Expansion

Remaining

Downsizing

RelocatingtootherCountryorWithdrawal


JETRO Business in Philippines

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