Dataline 20 (2013) by Department of Trade and Industry

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October 07, 2013 1

October 07, 2013 Vol. 17, No. 20

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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 PHL sees big leap in global rankings Inside DTI DTI-Kalinga team named Lingkod Bayan Awardee Good News, Philippines! 1. PHL earns interest abroad 2. High economic growth key to attract more investments 3. Auto sales up 21% in August

Consumer News 1. DTI-Kalinga lines up CWM activities 2. DTI-Rizal holds Diskwento Caravans 3. Consumers urged to follow electric saving tips, regulations ASEAN Watch 1. Japanese businessmen seek local business partners 2. PHL manufacturers urged to take advantage of zero tariff Statwatch

What’s New? MSME News 1. DTI endorses eBNRS to MSMEs 2. DTI offers free trainings for MSMEs 3. JICA funds FabLab project in Bohol 4. DTI gives SSFs to Batangas sugar farmers 5. DTI-8 to launch more SSFs 6. DTI distributes P15-M SSFs in Bataan Business Update DTI-Catanduanes pushes franchising for entreps

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Focus PHL sees big leap in global rankings Reforms in business process indicators

• • • • • • • •

Starting a business Dealing with construction permits Getting electricity Registering property Getting credit Protecting investors Paying taxes Trading across borders

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he government expects the country’s ranking in the World Bank’s Doing Business report to improve to at least the 62nd spot by 2016 from the 138th place last year out of 185 countries as reforms are being undertaken to create a better business environment. “I am very confident that by 2016, we will be number 62 or lower in the Doing Business survey,” Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said. Domingo, who is also the National Competitiveness Council (NCC) Public Sector Chairman, said the country’s ranking would be in the top 30% in most if not all competitiveness surveys by 2016. “By 2016, many of these reforms will be in place and once we achieve these reforms, doing business in the Philippines will be easier and that should improve our rankings,” he said. On the same note, NCC Private Sector Co-Chairman Guillermo M. Luz expects the country’s ranking to improve by 20 to 25 notches in the survey as the government has focused on reforms concerning

Inside DTI DTI-Kalinga team named Lingkod Bayan Awardee

epartment of Trade and Industry (DTI)-Kalinga’s Management Review Team has recently earned the 2013 Civil Service Commission (CSC) Pagasa Award under the group category for exemplary service. The Pagasa Award is conferred on an individual or group for outstanding contributions resulting from an idea or performance that directly benefits more than one department of the government.

the 10 indicators being tracked by the multilateral lender. Luz said the accomplishment report sent by the NCC to the World Bank for the upcoming survey shows improvements in eight out of the 10 indicators being monitored. He added that while the government wants to see improvement in the ranking, the reforms are being undertaken not only to achieve a better standing in the report but also to encourage more businesses and investments to be made here. “We are putting reforms for entrepreneurs. If our ranking does not improve, but more want to invest here, then we are competitive,” he said. Domingo said the government wants to provide a more conducive environment for businesses and investments to take advantage of the country’s favorable economic conditions now. “Our relative competitiveness in Asia and ASEAN (Association of Southeast Asian Nations) is in the best it has ever been and will continue to improve,” he said. (TPS 09/20)

DTI-Kalinga’s Management Review Team Members

• DTI-Kalinga Provincial Director Grace F. Baluyan

• Senior Trade and Industry Development Specialist (STIDS) Noryn Bagano

• STIDS Ma. Cecilia Baral • Trade and Industry Development Specialist (TIDS) Wena Buston

• Administrative Officer and Concurrent Rural Micro-Enterprise Promotion Programme (RuMEPP) Provincial Officer Aurelia Sanet • Clerk III Leonida Abadilla • Driver Arthur Talledo

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President Benigno S. Aquino III will confer the award at Malacañang on October 24, 2013 as part of the 113th Anniversary of the Philippine Civil Service post-celebration with the theme ‘Tatak Lingkod Bayani: Isabuhay, Ipagmalaki at Ipagbunyi.’

Good News, Philippines! 1. PHL earns interest abroad

ot only foreign investors but also ordinary people have so much interest in the Philippines, Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said. “The interest in the Philippines is very broad-based. It started out initially in business. But it’s expanding to tourism, arts, culture, all aspects of life here,” said Domingo who recently arrived from the ChinaASEAN Expo (CAEXPO) in Nanning, China representing the Philippines as the “Country of Honor.” “We are on an outward spiral. That’s reinforcing itself. And the momentum is with us. And that will flow through again on the economic side,” he added.

2. High economic growth key to attract more investments

he Philippines’ robust economic growth is expected to attract more foreign direct investments (FDIs) in the next few years, National Economic and Development Authority (NEDA) Director General Arsenio M. Balisacan said. “Now that our domestic investors are finally investing and you see them coming in big ways, we hope that would now signal to the foreign investors that they can do business in the Philippines,” Balisacan said. However, Balisacan expects FDIs to come gradually as foreign investors remain very cautious on the global economy, pointing out that while investors expect higher rates of return on their investments in emerging countries like the

The CSC encourages the nomination of public servants to be recognized through its Honor Awards Program, an annual undertaking that recognizes government officials and employees who have displayed outstanding work performance. He said extended interest in culture and the arts will soon benefit the economic side as foreigners may come in the country to buy books, movies, arts and crafts, and literature materials among others. It will also make impact on the country’s tourism industry. For instance, the Maison and Objet Fair Trade in Paris wherein the Philippines is participating is a good chance to broaden the foreigners’ interest in the country, Domingo said. He said the trade show on furniture and home furnishings has put the Philippines in the main hall of the trade, noting that local designs gained attention from the organizers.

Philippines, managing risk is still their foremost consideration. “So we really need to establish credibility and the first one that you must be able to convince is our domestic investors. Our reserves are so large and our remittances, these can be turned into investments,” he said. Apart from building the confidence of local investors, Balisacan said the Philippines needs to continue improving its business environment as well as sustain its gross domestic product (GDP) growth. Meanwhile, Balisacan said Philippine exports are expected to recover in the remaining months of the year as major overseas markets are picking up.

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He expressed optimism about the sector’s rebound after export sales grew for the second consecutive month in July on higher demand for electronic products, noting that even with the electronics revenues’ declining share to total exports revenues, the Philippines has already diversified its exports products.

furniture, gifts, and chemicals – those are the ones growing quite respectably,” he said. Balisacan also hopes that more competitive industries will come out as the country is working to improve its business environment. He believes maintaining the momentum will result in surging business confidence in the country.

“Varied sources of exports like agriculture processed exports,

3. Auto sales up 21% in August

he automotive industry’s sales last August rose by 20.7% to 13,700 units from 11,351 units sold in August 2012, a joint

report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed.

Robust sales Type of vehicles

No. of units sold

Commercial vehicles Passenger cars Light commercial vehicle Asian Utility Vehicle and Light Trucks

8,578 5,122 5,028 3,150

Top 10 market players

• • • • •

MSME News 1. DTI endorses eBNRS to MSMEs

Toyota Motors Philippines Corp. Mitsubishi Motors Philippines Corp. Honda Cars Philippines, Inc. Ford Motor Company Phils. Inc. Isuzu Philippines Corp.

he Department of Trade and Industry (DTI) is promoting the use of its Enhanced Business Name Registration System (eBNRS) to micro, small, and medium enterprises (MSMEs). MSMEs’ business registration is expected to render them a legal personality and thus enabling them to get benefits, incentives, and privileges that will help support and develop their enterprises. The DTI continuously upgrades the eBNRS through partnerships

• • • • •

Universal Motors Corp. Columbian Autocar Inc. Suzuki Phils. Inc. Berjaya Auto Phils. Inc. Nissan Motors Philippines Inc.

with financial institutions and service providers to create additional payment options. The system is undergoing enhancement to utilize Globe Telecom, Inc.’s GCash facility. In May, DTI signed a memorandum of agreement (MOA) with the Development Bank of the Philippines (DBP) and BancNet to support an electronic payment facility for online BNR.

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2. DTI offers free trainings for MSMEs

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he Department of Trade and Industry-Bureau of Micro, Small, and Medium Enterprise Development (DTI-BMSMED) held free entrepreneurship seminars last month. The Small and Medium Enterprise (SME) Briefing Sessions catered to start-ups and were meant to give

3. JICA funds FabLab project in Bohol

he Japan International Cooperation Agency (JICA) sponsored the first fabrication laboratory (FabLab) project in the Philippines that will benefit 135 manufacturers in the creative industry in Bohol.

insights and advice from experts to encourage the conception of new small businesses. DTI also conducts trainings through its SME Roving Academy and provides essential equipment to MSMEs through its shared service facilities (SSF) program. (BWD 09/02, TPS 09/03)

Local manufacturers, assisted by a JICA-Japan Overseas Cooperation Volunteers (JOCV) member, already experimented with FabLab and were able to combine raffia with up-cycle plastic, creating a stronger material. (TPS,abs-cbnnews.com 08/19)

FabLab will provide manufacturers with a computer-based innovation, design, and fabrication workshop that can easily turn their ideas to actuality through open-source software, solving their problems with manual design execution. The project is a collaboration of JICA with the Department of Trade and Industry (DTI), Department of Science and Technology (DOST), and the Bohol Island State University (BISU) that will shelter the workshop.

4. DTI gives SSFs to Batangas sugar farmers

he Department of Trade and Industry (DTI) has provided two shared service facilities (SSFs) for sugar farmers in Batangas. The DTI has given Kamahari Agri-based Multi-Purpose Cooperative in Nasugbu an automatic granular packaging machine worth P280,000. The facility is seen to help at least five more producers of coffee, bignay tea, muscovado, and other sugar products in the First District of Batangas. The Department likewise provided a presser and workbench worth

Other technologies to be purchased

• • • • • • • •

Laser cutters Big and small milling machines 3D printer Test equipment Print and cut machine Scroll saw Embroidery machines LED TV for video conference

P78,000 to Riverside Multi-Purpose Cooperative, which sells sugarcane juice in Nasugbu. With the facility, Riverside is expected to increase its output of bottled juice sold to restaurants, beach resorts, and supermarkets in Batangas and Metro Manila. The SSF is DTI’s P700-M strategic program that provides enterprises, particularly those in the countryside, with machinery and equipment to increase their levels of quality, productivity, and competitiveness.

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5. DTI-8 to launch more SSFs

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he Department of Trade and Industry-Region 8 (DTI-8) will put up more shared service facilities (SSFs) in the region this year to provide micro, small, and medium enterprises (MSMEs) a common service area with better technology and equipment. “The project could help the entrepreneurs tap a wider market and be integrated in the global supply chain,” DTI-8 Regional Director Cynthia R. Nierras said.

that was seen to boost the productivity of the town’s food processing association. Nierras said that SSF is vital as MSMEs, being individual enterprises, cannot normally acquire equipment or machinery due to huge capital investment. She said the SSF complements existing assistance package to MSMEs in the areas of technology, product development, and packaging.

Recently, a facility has been launched in Babatngon, Leyte

6. DTI distributes P15-M SSFs in Bataan

he Department of Trade and Industry (DTI)-Bataan provided P15M worth of shared service facilities (SSFs) to small businesses in the province to accelerate their production. “The [SSF] program aims to address the production gaps and bottlenecks in the industry clusters through the provision of processing machines and equipment,” DTI-Bataan Officer-in-Charge (OIC) Nelin O. Cabahug said. DTI Bataan will establish 10 SSFs that are expected to benefit over 1,500 processors of bamboo

Business Update DTI-Catanduanes pushes franchising for entreps

he Department of Trade and Industry (DTI)-Catanduanes encourages the Catandueños to invest in franchising ventures as it organizes a franchising seminar this month to motivate locals to get into the industry. The seminar focuses on providing the right information about franchising and more awareness on applicable franchise prospects.

products, coffee, bags, and organic fertilizer from Balanga City and 11 other towns in the province. Bataan Chamber of Commerce and Industry, Inc. (BACCII) President Amanda T. Battad said that many entrepreneurs are hampered with the lack of equipment to expand their industrial and commercial operations. With DTI’s assistance, their chance of finding the next successful entrepreneurs becomes bigger, Battan said.

Franchising has already started in the province with the establishment of Reyes Haircutters, Jollibee, Pancit Malabon, and some food carts and perfume outlets. The growth of franchising business in Virac has made the province a more satisfying destination to conduct business and leisure, DTI-Catanduanes Officer-in-Charge (OIC) Heginio A. Baldano said.

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Consumer News 1. DTI-Kalinga lines up CWM activities

2. DTI-Rizal holds Diskwento Caravans

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he Department of Trade and Industry (DTI)-Kalinga has lined up price and tag monitoring in public markets in Tabuk City, promotion of consumer education advocacy in the barangays, and information dissemination with Kalinga’s local media as among their activities for the celebration of this year’s Consumer Welfare Month.

he Department of Trade and Industry (DTI)-Rizal organized a Diskwento Caravan at the Guitnang Bayan I Covered Court, San Mateo, Rizal recently to help the locals affected by typhoon “Maring” by making available discounted basic goods. The activity was also conducted to ensure that the prices were stable in the province. Rizal was declared under the state of calamity, putting a freeze on the prices of products.

3. Consumers urged to follow electric saving tips, regulations

he National Grid Corporation of the Philippines (NGCP) has urged consumers to follow electric saving tips and regulations as part of its information campaign on safety regulations to avoid accidents and power interruptions. NGCP Regional Communications Division Officer-in-Charge (OIC) Nelson Bautista pointed out the need to raise public awareness on the importance of transmission lines and line safety and security. Bautista also said it is important to conserve energy by using electricity wisely.

This year’s theme is “Health Products: Quality, Efficacy, Safety, and Transparency… Everyone’s Concern.” In line with this year’s theme, DTI and its partner agencies focused on monitoring drugstores in Tabuk City.

The products available during the one-day event were NFA rice, vegetables, canned goods, pancit noodles, and other basic supplies. Together with the local government of Marikina, it also held a one-day caravan in Marikina City as part of the post-disaster relief operations for the Habagat victims. Products with discounted prices were basic commodities like rice, sugar, cooking oil, and canned goods.

Safety reminders near transmission lines or structures

• • • •

Be cautious when passing through especially when carrying long sticks or any object. Do not allow children to climb transmission lines or fly kites in the area. It is prohibited to plant trees, build houses or any structure. Report immediately any incident of leaning posts or towers, sagging lines, and power pilferage or other suspicious activities to NGCP.

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ASEAN Watch 1. Japanese businessmen seek local business partners

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Japanese business delegation arrived in the Philippines for business matching sessions with Filipino counterpart on September 9-10, 2013.

“We can also see the power of the Philippines to move its economy forward. Japanese businesses can see good future here in the Philippines,” Hajime said.

The Filipino personalities attracted Japanese businessmen to invest in the country, Japanese Senator Hajime Ishii said.

The Philippine Chamber of Commerce and Industry (PCCI) organized the session and around 10 local companies had met the Japanese delegates during the first day.

Japanese delegates

2. PHL manufacturers urged to take advantage of zero tariff

Industry

Company

Accounting Elevator maintenance Fitness clubs and spas Management consulting Pachinko and casino business Pest control rental business Real estate management Recruiting service solutions Resource recycling and circulation consulting Software development

Yonezawa Misao Accounting Firm SEC Elevator Co., Ltd. Rocs Inc. S.A. Consulting Inc. Yume Corporation Japan Sakudory Co., Ltd. Taisei Housy Co., Ltd Lighthouse Global Inc. Re-Tem Corporation System’s Co., Ltd.

hilippine businesses can look at opportunities in Australia and New Zealand as the two countries mull zero tariff for Association of Southeast Asian Nations (ASEAN) members under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). The FTA also pushes reduction to tariff cost elimination to further leverage trade flow within ASEAN and ANZ economies. “Under the trade agreement, all products exported to ANZ by the 10-nation ASEAN will have zero tariffs by 2020. From now until 2020, exporters can expect an increasingly expanding list of commodities subjected to zero tariff status in the ANZ,” Department of Trade and Industry-Bureau of International Trade Relations (DTI-BITR) Specialist Jeremiah Reyes said. Under the AANZFTA, 96.5% of ASEAN product lines bound for Australia

STATWATCH P15M Value of SSF to be provided to MSMEs in Bataan

P280,000 Value of SSF provided to Kamahari Agri-based Multi-Purpose Cooperative in Nasugbu, Batangas

P78,000 Value of SSF provided to the Riverside Multi-Purpose Cooperative in Nasugbu, Batangas

13,700 Vehicle units sold in PHL in August 2013 vs. 11,351 in August 2012

138th PHL’s ranking in the World Bank’s Doing Business report in 2012

96.5% ASEAN product lines bound for Australia to have zero tariffs this year

62nd PHL’s targeted ranking in the World Bank’s Doing Business report by 2016

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October 07, 2013 9

will have zero tariffs this year. Tariff-free perks will expand to cover 96.8% of commodities by 2015.

In 2020, zero tariffs shall apply to all lines, the Philippine Exporters Confederation, Inc. (PHILEXPORT) said. (MAT 09/07, PDI 09/09)

Products with zero tariffs 2013 Appliances Auto and auto parts Basket wares Beverages Ceramics Cotton apparel Fine and costume jewelry Footwear Furniture Gloves Hosiery Inorganic and organic chemicals Leather goods Minerals Processed food

Shawls Ships and boats Socks Ties Trousers of synthetic fiber Women’s undergarments Wool overcoats 2015 Men’s synthetic suits and dresses Women’s wool jackets and suits 2020 Carpets Other articles of apparel Wooden office furniture Soy sauce Sweet biscuits Wooden doors

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(A synopsis of selected book acquisitions at the DTI-TIIC library)

Title : Exporting to Canada – a Handbook

Publisher : TFO Canada Call Number : 20 124/09.06/ TFO/2013

Author : Griffin, Jack Publisher : Prentice Hall Press Call Number : 06.01/GRI/2013

It gives an overview of the Canadian market. Also discusses the country’s economy, markets, trading laws and rules, trade agreements, taxes, tariffs and import documentation, and regulations on doing business. 64p.

It provides practical, results-oriented guidance for effective communication, with emphasis on words, phrases, scripts, and strategies applied to real-world examples and scenarios. It teaches the essential language of sales and service, including how to communicate in ways that always address the customer’s needs and wants, identify prospective customers, and develop a vocabulary of value. Also provides learning formula for making a sale and creating a loyal customer. 261p.

Legend:

BWD - Business World PDI - Philippine Daily Inquirer MAT - Manila Times TPS - The Philippine Star abs-cbnnews.com

Title : How to Say It: Creating Complete Customer Satisfaction

Entered as Third-Class Mail at the Makati Central Post Office under Permit No. PM-04-08 valid until 31 December 2013

Philippine Postal Permit No. PM-04-08

What’s New?

Vol. 17, No. 20 10

Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam H. Raposon, Hazel S. Dizon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout: Ren C. Neneria Circulation: Myrna V. De Los ReyesTo subscribe, email: publications@dti.gov.ph