jetro business in philippines
TRANSCRIPT
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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
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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:%
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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:%
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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:%
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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$
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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$
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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$
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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$
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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$
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO
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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
(Source): Survey of Japanese-Affiliated Companies in Asia and Oceania (FY 2012 Survey) ,Dec. 2012/JETRO