investment opportunities in the philippines

8/6/2019 Investment Opportunities in the Philippines

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Investing in the Philippines

A Quick look atopportunities

Prepared by the Institutefor Comparative andAdvanced Studies


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Philippine Special Economic Zones

A Special Economic Zone (SEZ) is a geographical regionthat has economic and other laws that are more free-market-oriented than a country's typical or national laws."Nationwide" laws may be suspended inside a special

economic zone.

The category 'SEZ' covers a broad range of more specificzone types, including Free Trade Zones (FTZ), Export

Processing Zones (EPZ),Free Zones (FZ), Industrial

parks or Industrial Estates (IE), Free Ports , UrbanEnterprise Zones and others.

Usually the goal of a structure is to increase foreign directinvestment by foreign investors, typically an international

business or amultinational corporation (MNC).


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Philippine economic zones (ecozones) arecollections of industries, brought together

geographically for the purpose of promotingeconomic development. These ecozones were

established through Republic Act No. 7916,otherwise known as "The Special Economic

Zone Act of 1995" as amended by Republic ActNo. 8748.


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Philippine Ecozones are generally administeredby the Philippine Economic Zone Authority

through a Board (PEZA Board), attached to theDepartment of Trade and Industry.

The PEZA Board sets the general policies onthe establishment and operations of the

Ecozones, industrial estates, export processingzones, free trade zones, and the like. They alsoreview proposals for the establishment ofEcozones, which they subsequently endorse to

the President of the Republic of the Philippines.


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In addition, the PEZA Board regulates andundertakes the establishment, operation andmaintenance of utilities, other services and

infrastructure in the Ecozone, such as heat,light and power, water supply,

telecommunications, transport, toll roads andbridges, port services, and the like.


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Several incentives are granted to businessestablishments operating within PhilippineEcozones, particularly those found in the

Omnibus Investments Code of 1987.[11] Theseincentives include income tax holidays; zeropercent (0%) duty on importation of capitalequipment, spare parts, and accessories;

exemption from wharfage dues and export tax,impost or fees; and the simplification of customsprocedures, among others.[12] In addition,


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The Special Economic Zone Act of 1995exempts business establishments operating

within Ecozones from all taxes. In lieu of payingall other taxes, business establishments are

only required to pay five percent (5%) of theirgross income to the national government


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Activities Eligible for PEZA Registration andIncentives include but are not limited to (1)

Export Manufacturing; (2) InformationTechnology Service Export; (3) Tourism; (4)

Medical Tourism; (5) Agro-industrial ExportManufacturing; (6) Agro-industrial Bio-Fuel

Manufacturing; and (7) Logistics andWarehousing Service


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Although designed to operate separately from thepolitical and economic milieu of surroundingcommunities, Philippine economic zones do in fact

interact with their neighbors.

As of31 May 2010, there were more than 200Ecozones in the Philippines. Of these more than 200Ecozones, seven (7) are Agro-Industrial EconomicZones, 134 are Information Technology Parks andCenters, 65 are Manufacturing Ecozones, two (2) areMedical Tourism Parks/Centers, and nine (9) areTourism Economic Zones. Of the 41 private economic

zones, the biggest exporter is Gateway Business Parkin General Trias, Cavite and the second biggestprivate ecozone is Laguna Technopark Inc.


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The four governmentally owned are CaviteEconomic Zone, Bataan Economic Zone,Mactan Economic Zone and Baguio City

Economic Zone. Some of the more well-known

Economic zones are the Clark SpecialEconomic Zone, and Subic Economic Zone,former military bases of the United States of

America.


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Some of the over 200 SEZs in the Philippinesare as follows:

Subic Bay Metropolitan Authority (76.59hectares)

Clark Special Economic Zone (29,365 hectares)

Bataan Export Processing Zone (1,733.37hectares)

PHIVIDEC Industrial Authority

Zamboanga City Special Economic Zone

Authority

Cagayan Special Economic Zone


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Aurora Pacific Economic Zone and FreeportAuthority (APECO)

Light Industry & Science Park I, II, & III (272.22hectares)

Laguna Technopark (289.95 hectares)

Laguna International Industrial Park (34.88hectares)

Hermosa Ecozone Industrial Park (142.04

hectares) Keppel Philippines Marine Special Economic

Zone (22.92 hectares)

Filinvest Technology Park - Calamba (51.07


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Current Security Assessment

Special Economic Zones are well protected areasand are at times considered as retirementhomes for foreigners,The only areas considered

to be of significant risk as the following areas:1. ARMM(Lanao and Cotabato Areas)

2. Samar

3. Leyte4. Marinduque


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investment opportunities in the philippines

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