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December 03, 2012 1
December 03, 2012 Vol. 16, No. 25
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A bi-monthly digest of global and domestic industry trends and developments. Published by the Trade and Industry Information Center, Department of Trade and Industry Manila, Philippines Tel. (632) 895.3611 Fax (632) 895.6487 To subscribe, email: publications@dti.gov.ph Online: http://www.dti.gov.ph
In this issue Focus P16.7-B investments migrate to PHL
Consumer News Balikbayan Box Shipping 101
Inside DTI DTI assists Bataan hotels, restaurants
Features Industry roadmaps to be completed early next year
Good News, Philippines! 1. USD 200-M furniture exports targeted ASEAN Watch 2. PHL industries’ Q2 earnings up 10.1% 1. Private firms eye developing Asia 3. Higher manufacturing yield recorded as top investment site in September 2. PHL leading regional growth 4. Career opportunities abound AsPac online travel booking in IT-BPO industry seen hitting USD 91B MSME/OTOP News 1. Bahandi 2012 exceeds sales target 2. IMPAKABSAT earns P54M 3. DTI allots P1.6M for Iloilo MSMEs Business Alert 1. DTI brings DBFTA to the academe 2. NICP launches “Smarter City” campaign 3. Cremation getting strength in PHL
Statwatch What’s New?
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Focus P16.7-B investments migrate to PHL
Vol. 16, No. 252
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ome P16.7B worth of investments have migrated to the Philippines from other Asian countries as foreign investors seek to benefit from the country’s improving cost competitiveness, the Department of Trade and Industry (DTI) said.
the Philippines has significantly improved as an investment destination, citing the country’s competitiveness in terms of cost, competency and availability of labor as well as in rentals and land cost versus competition from neighboring countries in Asia.
In a recent report to the Economic Cabinet Cluster, the DTI said it conducted a total of 10 outbound trade and investment missions to targeted countries, namely Japan, Korea, China, and Taiwan.
The JETRO survey, conducted between August and September 2011 covering Japanese-affiliated firms in Asia and Oceania, identified the Philippines as the cheapest in almost all factors of business or investment decision-making.
The new investments were mostly infused by 10 companies, half of which were Japanese that migrated to the country in recent months. On top of the 10 companies that have migrated here, the DTI has also identified 17 other companies from nine countries as “positive” or “almost sure” investment leads. A study by the Japan External Trade Organization (JETRO) showed that
The Philippines also garnered favorable ratings in terms of competitiveness advantage on business environment in comparison with other Asian countries. Competitiveness indicators include financial costs, sufficient labor supply and reasonable salary for manufacturing and non-manufacturing personnel. (MAB 11/18)
Foreign investments that migrated to PHL
Inside DTI DTI assists Bataan hotels, restaurants
Firms Murata Manufacturing Co. Ltd
Project Electronic components
Amount P7.15B
Luen Thai
Garments and accessories
P2.64B
Canon Business Machine (Phils.) Inc.
Printers
P2.5B
Charoen Pokphand Foods Philippines
Food products
P2.26B
Molex Integrated Products Philippines
Electronic parts and components P1.15B
New Kinpo/Cal-Comp Electronics of Taiwan Electronics
P348.3M
Superi
Manufacturing
P139.9M
Fashion Focus
Garments
P139.9M
Leader Electronics
Electronics
P88.8M
Shanghai Zephyr International
Garments
P12M
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he Department of Trade and Industry (DTI) is assisting local food manufacturers in Bataan to boost the viability of hotels and restaurants in the province.
agreements with members of the Bataan Hotel and Restaurant Owners’ Association (BHROA) after launching a speed-matching at the Crown Royale Hotel in Balanga City.
DTI-Bataan Provincial Director Yay P. Lasam said local food manufacturers have made
Yolanda Laborcero, owner of the Arlie’s Aquamarine Products, said the management of Crown Royale
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Hotel ordered processed fish products that include gourmet tuyo, bangus in oil, smoked fish in oil, and spicy squid, among others. BHROA President Lino Obana said DTI-Bataan’s assistance is a big help to the province’s hotels and restaurants, noting that the presence of middlemen has been eliminated. Meanwhile, the DTI, in coordination with the city government of Balanga City, recently staged a two-day “Diskwento Caravan” in the province. Lasam said the DTI imposed a minimum 10-% discount for all goods sold at the Plaza Mayor de Balanga.
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Good News, Philippines! 1. USD 200-M furniture exports targeted
2. PHL industries’ Q2 earnings up 10.1% Q2 growth in revenues per industry (in %) Industry Real estate Trade Transport and communication Finance Private services Manufacturing
“Pero sa pag-ikot namin, nakita namin na karamihan 20% ang ibinibigay na diskwento [But in our tour, we found out that most establishments offered 20-% discounts],” Lasam said. “Magandang proyekto ito na nagbibigay ng pagkakataon sa mga taga-Bataan na makabili ng iba’t ibang produkto sa murang halaga [This is a good project that gives Bataan residents the opportunity to buy different products at cheaper prices],” Balanga City Mayor Jose Enrique Garcia III said. Lasam said the “Diskwento” in Bataan was the second for the year, the first being in May.
he Chamber of Furniture Industries of the Philippines, Inc. (CFIP) has drawn up a branding strategy to double its export earnings to USD 200M over the next five years.
A respectable and credible body will assess the best business processes to select these companies based on their potentials and should have funds to sustain the branding program implementation.
CFIP President Nicolaas K. De Lange said industry players will develop a comprehensive branding program that targets 15 companies per year.
“Based on the success stories in the Philippines, we have noticed that companies that have withstood the challenges of the global crisis are the ones that had work on their brands,” De Lange said. (MAB 11/03)
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he total gross revenue of Philippine industries accelerated by 10.1% in the second quarter from the previous year’s growth of 6.7%, the National Statistical Coordination Board (NSCB) reported.
Revenue increase 22.5 12.9
The NSCB also said total employment index went up by 3.3% in the April to June period, from a 1.8-% drop in the same period last year.
10.8 9.5 6.6 3.3
Employment in mining and quarrying turned around from an 18.7-% decline last year to an 8.4-% growth in the second quarter of the year.
Total compensation index, which represents the salaries and wages paid out by industries in cash and in kind, rose by 9.4% from 3.2% last year. Mining and quarrying expanded to 16% from a decline of 1.6% the previous year. Total compensation per employee index expanded 5.9% in the second quarter. The growth was attributed to the robust performance of private services and the favorable performances of the other sectors. (BMI 11/01)
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3. Higher manufacturing yield recorded in September
Vol. 16, No. 254
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he country’s manufacturing sector recorded higher yield in terms of value and volume in September, with machinery and transport equipment makers leading the growth. The latest Monthly Integrated Survey of Selected Industries (MISSI) released by the National Statistics Office (NSO) showed that the manufacturing industry’s value of production index (VaPI) grew by 6.7% in September. Five major contributors to growth in production value (in %) Sector Growth Machinery (except electrical) 28.0 Transport equipment 27.5 Footwear and wearing apparel 24.5 Food manufacturing 20.7 Basic metals 12.4
In terms of volume, the manufacturing industry increased its output by 8% for the month, the NSO said.
4. Career opportunities abound in IT-BPO industry
Eight major contributors to growth in production volume (in %) Sector Growth Transport equipment 28.5 Footwear and wearing appare 27.7 Machinery (except electrical) 27.4 Wood and wood products 21.4 Basic metal 18.8 Electrical machinery 15.7 Food manufacturing 14.3 Chemical products 11.1
Meanwhile, the manufacturing industry’s value of net sales index (VaNSI) rebounded in September, posting an annual increment of 2.3% from the 3.6% decline in the previous month. Eight major contributors to growth in sales (in %) Sector Growth Textiles 73.4 Footwear and wearing apparel 50.6 Publishing and printing 39.8 Non-metallic mineral products 38.4 Transport equipment 36.6 Machinery (except electrical) 23.5 Beverages 11.6 Electrical machinery 11.0
The hike in the volume of production index (VoPI) is attributed to the double-digit growth posted by some major sectors.
With increased output and sales, the manufacturing industry posted an 83.3-% average capacity utilization in September. (BMI 11/15)
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(HIM) outsourcing, animation, IT and software development, and shared services.
ith USD 13.4B in revenues in 2012 and an impressive compound annual growth rate of 20%, the information technology and business process outsourcing (IT-BPO) industry is projected to employ 926,000 Filipinos in 2013. Industry experts see demand growing in different IT-BPO sectors, including healthcare information management
About 10,000 Filipinos provide high-value creative services such as flash animation and web design; graphic and art design; mobile application; 3D gaming both for consoles and PC platforms, among others.
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MSME/OTOP News 1. Bahandi 2012 exceeds sales target
December 03, 2012 5
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he Bahandi 2012 Eastern Visayas Regional Trade Fair held at the SM Megamall on the second week of November generated P12.41M in sales, surpassing its P11.73M target. Of the total sales, P5.36M was in cash and booked sales while P7.04M was under negotiation. Department of Trade and Industry (DTI)-8 Regional Director Cynthia R. Nierras said 81 micro, small, and medium enterprises (MSMEs) from the region participated. Processed food dominated the sales at P7.15M; gifts, decors, and house wares at P2.70M; and furniture at P2.55M. In terms of cash and booked sales, the National Coconut Research CenterVisayas (NCRC-V) of the Visayas State University (VSU) in Baybay City recorded the highest with P552,195.
NCRC’s macapuno-based products made by a farmer’s group in Leyte
2. IMPAKABSAT earns P54M
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he IMPAKABSAT 2012 earned a total of P54M, surpassing by 35% the P40-M sales target. The fair showcased 80 of the Cordillera Autonomous Region’s (CAR) micro, small, and medium enterprises (MSMEs). Exhibited products included silver crafts, ethnic novelty items, houseware, furniture and furnishings, fresh and processed food, handwoven
3. DTI allots P1.6M for Iloilo MSMEs
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he Department of Trade and Industry (DTI) – Iloilo has set aside P1.6M for the entrepreneurship development program of micro, small, and medium enterprises (MSMEs) in Region 6. DTI-Iloilo Provincial Director Wilhelm Malones said the fund will be used to buy equipment
towns captured the interest of Sitsiriya Sari-Sari, a distributor of native delicacies, with 25 mall-based outlets in Metro Manila. Coconut wine processor DJ Crater Inc., maker of Vino de Coco, has recorded the highest potential market with P4.34M. Nierras said that good sales report of the trade fair indicates the increasing demand for developed products out of naturally grown raw materials in Eastern Visayas. The exhibitors came from Leyte (32), Northern Samar (17); Samar (15); Eastern Samar (10); Biliran (4), and Southern Leyte (3). Nierras vowed to sustain the Bahandi trade fairs with the funding support from the DTI-Rural Micro Enterprise Promotion Programme (RuMEPP), a seven-year project by the International Fund for Agricultural Development (IFAD) and the government. products, woodcrafts, bamboo crafts, and collectible antiques. IMPAKABSAT, which stands for Cordillera Autonomous Region’s (CAR) provinces, namely Ifugao, Mt. Province, Apayao, Kalinga, Abra, Benguet, and Baguio City, completed by the Ilocano word “kabsat” or sibling, is an annual event spearheaded by the Department of Trade and Industry (DTI) to promote the region’s various crafts and industrial products. and technical assistance needed for the program. The program includes seminars, project identification, business plan creation, and other technical assistance necessary to put up business or enhance existing projects. (MAB 11/18)
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Business Alert 1. DTI brings DBFTA to the academe
Vol. 16, No. 256
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he Department of Trade and Industry (DTI) continues to engage academic institutions as partners to inform micro, small, and medium enterprises (MSMEs) about the benefits of “Doing Business in Free Trade Areas” (DBFTA) program. DTI’s Bureau of Export Trade Promotions (BETP) and Philippine Trade Training Center (PTTC) have signed up with 19 academic institutions, business groups and customs brokers associations to help widen exporters’ awareness and utilization of the country’s FTAs.
holding information sessions for local manufacturers having the potentials to become exporters. They can also act as dissemination centers of materials and projects and as resource and networking hubs in the continuing efforts of the DTI to reach more local- and ruralbased manufacturers. The DBFTA is a DTI trade-andinformation advocacy with an end-goal of boosting the country’s export capability and performance, generate domestic employment and alleviate poverty among the rural folks. (BMI 11/18)
Academic institutions, with all their resources, have a special function in
2. NICP launches “Smarter City” campaign
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he National Infomation and Communications Technology (ICT) Confederation of the Philippines (NICP) has launched “Smarter City/Countryside” campaign at the 5th NICP National ICT Summit in Santa Rosa, Laguna recently. “The concept of the smarter city is to develop a whole ecosystem that will promote the use of ICT in the development of Business Process
3. Cremation getting strength in PHL
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he cremation business in the Philippines is flourishing and has become more popular among Filipinos. Loyola Memorial Park Family Counselor Raymond Ramos said more people prefer cremation over burial because cremation costs are significantly lower. An estimated six out of 10 clients of the Loyola Memorial Park choose
Outsourcing (BPO) companies,” Laguna Industry Networking for Knowledge, Innovation and Technology Foundation (LINK-IT) Chairman Tony Del Carmen said. The Philippines has to develop “Smart Cities” and “Smart Countrysides” to transform itself into a global hub for Business Process Outsourcing (BPO), Del Carmen said. (MAB 11/01) cremation and most of them are foreigners who wish to bring their dead home. Manila Memorial Park Cremation Supervisor Danilo Fabros said cremation is advisable not only because of its affordability but also because it saves space in the cemetery. (TPS 11/03)
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Consumer News Balikbayan Box Shipping 101
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he holidays are indeed a peak season for shipping balikbayan boxes. To guide you in sending gifts, here are the common tips from the Department Trade and Industry-Philippine Shippers’ Bureau (DTI-PSB):
receipt and Bill of Lading – a document issued by a transportation carrier to the shipper as proof that they have received the cargo shipment and have placed them on board a particular vessel for delivery to a particular destination. Get the name and contact details of the forwarder’s agent in the Philippines. Be sure that all these information are clearly indicated in the transport documents.
Organize all the things you want to send through a balikbayan box. Inquire for proper or standard packing, wrapping, strapping, sealing, and labeling requirements of your box.
Have your balikbayan boxes delivered by PSB-accredited sea cargo consolidators/freight forwarding companies only. The DTI-PSB accredits sea freight forwarders while the Civil Aeronautics Authority of the Philippines (CAAP) accredits air freight forwarders. Check the list of accredited cargo consolidators in the DTI website: www.dti.gov.ph.
Features Industry roadmaps to be completed early next year
Beware of exceptionally low rates. Most complaints for non-delivery of cargo involve companies charging very low door-to-door rates. In these cases, the foreign principals do not have enough funds to bear the cost of transporting the cargos. Declare all your shipments. Accomplish a detailed packing list stating all the contents of your box and value of shipment, per item if possible, as well as your preferred shipping date. Secure transport documents. These would include the cargo
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Monitor the movement of your cargo. Track the shipment of your package from origin to its destination. You may inquire with the forwarder for the tracking scheme. Ask them to provide you details such as the name of shipping line, vessel’s name, voyage number, container number, and expected time of departure and arrival of your cargo. Inform your consignee to check your cargo with the Philippine freight forwarding agent even before it arrives. Make sure to inspect the seal and wrapping of the box before signing the delivery receipt. If you see signs of tampering, do not receive the cargo and ask the delivery agent to have it double-checked.
In case of complaint, contact DTI-PSB at 2/F DTI Main Building, 361 Senator Gil J. Puyat Avenue, Makati City or call for assistance through DTI Direct 751.3330 or 0917.8343330.
he Department of Trade and Industry (DTI) is targeting to complete a comprehensive national industrial strategy, including the manufacturing industry roadmap, early next year.
domestic product (GDP) growth, said DTI Undersecretary for International Trade Group (ITG) and Board of Investments (BOI) Managing Head Adrian S. Cristobal Jr.
The manufacturing industry’s sustained growth has been supporting the country’s gross
The National Statistical Coordination Board (NSCB) said the manufacturing industry
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Vol. 16, No. 258
accounted for 25% of GDP for the first half of the year and 75% of total approved foreign direct investments (FDIs). “Of all the sectors, manufacturing contributed about 16% to the country’s employment, while its
ASEAN Watch 1. Private firms eye developing Asia as top investment site
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eveloping Asia, including the Philippines, is seen to attract USD 525.9B in private capital flows this year, up 11.79% from the level seen in June, the Institute for International Finance (IIF) said in a report. IIF said emerging Asia will remain this year’s most attractive investment destination for private entities, whose risk aversion has somewhat been minimized by developed nations’ commitment to address the present financial turmoil. The Philippines has been attractive to foreign inflows on the back of its strong macroeconomic fundamentals characterized by strong growth at 7.1% in the third quarter, and slower inflation of 3% as of October. (TPS 11/5)
2. PHL leading regional growth AsPac online travel booking seen hitting USD 91B
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ith the Philippines leading the growth, online travel bookings will reach USD 91B in the Asia Pacific region, or a 9-% growth by next year, AirAsiaGo reported. The country is one of the growing markets in the region which will fuel the growth of online travel bookings in 2013, AirAsiaGo Philippines Marketing Head Jasmin Eusebio-Yu said. “We expect online hotel bookings in the Philippines to grow next year as more Filipinos book their travels online due to the ease, simplicity, and convenience that online travel agents provide,” Eusebio-Yu said. (TPS 11/05)
subsectors accounted for 8.5% of the total employed, or 3.2M persons,” said Cristobal, noting that there are still so much work to be done to propel the sector to at least be on top of the country’s counterparts in Asia.
STATWATCH USD 13.4B Expected revenues of the Philippine information technology and business process outsourcing (IT-BPO) this year
P16.7B Investments that have migrated to the Philippines from other Asian countries in the recent months
USD 200M Target export earnings set by the Chamber of Furniture Industries of the Philippines, Inc. (CFIP) over the next five years
P54M Sales generated by IMPAKABSAT 2012
P12.41M Sales generated by Bahandi 2012 Eastern Visayas Regional Trade Fair
926,000 Projected job employment under PHL’s IT-BPO for 2013
10.1% Growth of the total gross revenue of Philippine industries in Q2 2012 vs. 6.7% in Q2 2011
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(A synopsis of selected book acquisitions at the DTI-TIIC library)
Legend: BMI MAB TPS
- Business Mirror - Manila Bulletin - The Philippine Star
Title : A Practical Guide to Trade Policy Analysis
Title : Key Indicators For Asia and the Pacific 2012 43 rd Edition
Publisher : ADB Call Number : 45 00/03.01/ADB/2012
Publisher : UN WTO Call Number : 07.01/UN/2012
This book provides a set of comprehensive social, economic, financial, environmental, and Millennium Development Goals (MDGs) indicator series for the 48 regional economies of Asia and the Pacific. The special chapter on Green Urbanization in Asia tackles two growing concerns – environmental sustainability and rapid urbanization. The statistical tables and analysis presented describe Asia and the Pacific region’s progress as it continues its economic recovery, cementing its claim to the largest share of the world’s gross domestic product, contributing more than a third to the world’s total exports. The countries were grouped into developing and developed members aligned with the operational effectiveness of ADB’s regional departments. The latter refer exclusively to Australia, Japan, and New Zealand. The remaining members are further grouped as Central, West, East, South and Southeast Asia, and the Pacific.
This book provides the main tools for the analysis of trade policy. Written by experts with practical experience in the field, this publication outlines the major concepts of trade policy analysis and contains practical guidance on how to apply them to concrete policy questions. Also aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research, the guide has been developed to contribute to the enhancement of developing countries’ capacity to analyze and implement trade policy.
Philippine Postal Permit No. PM-04-08
What’s New?
December 03, 2012 9
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani, Elaine M. Lazaro, Emman R. Caleon Design/Layout: Ren C. NeneriaCirculation: Myrna V. delos Reyes To subscribe, email: publications@dti.gov.ph