Doing business in the Philippines

Summary

Tim Harcourt explores the vibrant Philippines, highlighting its rapid economic growth, unique cultural landscape, and opportunities for foreign businesses. With a population exceeding 100 million, the country boasts a young, English-speaking workforce and a rising middle class. The Philippines' major trading partners include Japan, the US, and China, with industries like professional services and telecommunications thriving. While foreign investment is welcomed, businesses are encouraged to research and form local partnerships. The video emphasizes the importance of cultural understanding and engagement, making the Philippines an attractive destination for international enterprises.

Takeaways

• 😀 Each market, whether developing or developed, requires a tailored strategy; there's no one-size-fits-all approach.
• 🌏 Patience is crucial for success in Asia; economic returns may take time to materialize.
• 👥 Strong board support is essential to navigate the ups and downs of doing business in Asia.
• 🏢 Building a robust local team and partnerships can greatly enhance market entry and success.
• 📈 Blackmores has successfully increased its Asian income from 10% to 50% of total revenue over seven years.
• 🇵🇭 The Philippines is an emerging market with inherent risks; thorough research is necessary before entering.
• 🤝 Networking with local business councils or Asian society chapters can facilitate smoother market entry.
• ⛪ Being aware of the predominantly Roman Catholic culture in the Philippines is important for business interactions.
• 📅 Respect local customs and regulations, particularly around religious holidays, when planning business activities.
• 🎤 Engaging in local celebrations and building relationships can foster a positive business environment.

Q & A

What makes the Philippines an attractive place for foreign businesses?

The Philippines boasts a large, English-speaking workforce, a growing economy with a six percent growth rate, and a strong consumer market, making it a desirable location for foreign investment.

How does the Philippines' income tax structure compare to other Asian markets?

The corporate tax rate in the Philippines is 30 percent, and the top individual tax rate is 32 percent, which is among the highest in the region.

What role does overseas Filipino income play in the economy?

Foreign income from Filipinos working abroad constitutes about 40 percent of the Philippine economy, indicating its significance for local economic stability.

What key industries are growing in the Philippines?

Key industries include housing, transportation, education, and telecommunications, driven by the needs of a large population and rising consumer demand.

How has the historical context influenced the Philippines' current economic landscape?

The Philippines has experienced a tumultuous history, including colonization and military rule, which has shaped its current democratic environment and contributed to its emerging market status.

What are the challenges foreign businesses face when entering the Philippine market?

Foreign businesses may encounter bureaucratic hurdles, a complex regulatory environment, and the need to build trust and relationships with local partners.

What advice did the CEO of Blackmores give for companies wanting to expand into Asia?

Christine Holgate emphasized being patient, ensuring strong board support for strategies, and the importance of local teams and partnerships for success in Asian markets.

Why is understanding local culture important for businesses in the Philippines?

Understanding local culture helps businesses navigate social interactions, respect customs, and build strong relationships, which are vital for success in the Filipino market.

What measures is the Philippine government taking to improve the investment climate?

The new administration is focused on addressing corruption, simplifying investment procedures, and enhancing the overall investment environment to attract foreign businesses.

How do local partnerships benefit foreign companies in the Philippines?

Local partnerships can help foreign companies navigate the market more effectively, providing insights into consumer behavior, local regulations, and facilitating smoother operations.