8/4/2019 Investment Prospects for Doing Business in the Philippines

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Investment Prospects for Doing Business in the Philippines

Read more at Suite101: Investment Prospects for Doing Business in the Philippines |Suite101.com http://www.suite101.com/content/investment-prospects-for-doing-business-in-the-philippines-a340781#ixzz1W39FD86U

Thinking of doing business in the Philippines? Here are investment prospects for foreign capitalists and overseas Filipinos returning to stay for good.

Investment prospects in the Philippines for business-minded folks continue to exist and evolve in spite of thecountry's political and socio-economic woes. What are some of these money-making opportunities?

Booming niche markets for potential investors

Business Process Outsourcing (BPO)

Thanks to the advent of internet communications technology (ICT), BPO capitalists sowed the Philippine businesslandscape with call/contact centers, medical transcription firms, and computer animation companies. Current BPOenterprises are also involved in software development, human resource management functions, accountancy, onlinecontent writing, website development, and graphic designing, among others.

Based on a 1985 study by Rene Soriano, university professor Jorge Sibal, in his "Strengthening Offshoring in thePhilippines: Issues and Concerns " (2006), notes that the move or establishment of these operations in the country"was to minimize production cost and maximize profits. Salaries in developing countries are 50% to 80% less than inthe US."

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A recent IBM report featured in a Philippine Daily Inquirer (PDI) article by Cynthia Balana and Lawrence de Guzmanreveals that "the Philippines is now the world leader in business support functions", followed by India. Reasons forthis achievement include English fluency and cheaper labor cost.

Franchising

According to PDI columnist Tina Arceo-Dumlao, the Philippines is among the first countries in Asia thatadopted franchising as a business strategy . In her April 2010 interview with Yvette Pardo-Orbeta, president of thePhilippine Franchising Association (PFA), the country could evolve as the "franchise hub of Asia".

Franchises that offer goods and services to tourists, yuppies working in BPO firms, beauty and health buffs, andtechies are projected to have an increased and sustained market share. These include convenience stores, fast foodchains, generic drugstores, health spas, beauty parlors, clinics, and Internet cafs.

Pardo-Orbeta identifies that overseas Filipino workers (OFWs), professionals, retirees, and underpaid collegegraduates compose majority of franchise investors. She advises those intending to pursue this option to research firston the legitimacy of the business to avoid being scammed.

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diverse cultures, its labor code provisions, and the government's economic policies. Likewise, it is necessary to beaware of the social and political realities that affect the business climate.

Once the decision is made to invest in the Philippines, conduct a feasibility study to determine the potential of thebusiness. For foreign investors, having a Filipino business partner will certainly help deal with the proceduresinvolved in legitimizing the business and marketing it. Learning a major Filipino language, most often Tagalog, canalso help build rapport not just with fellow Filipino entrepreneurs, but with potential clients and employees as well.

Sources:

Arceo-Dumlao, Tina. 2010. "Optimism Returns to Franchising Sector". Philippine Daily Inquirer . April 16.(accessed February 2, 2011)

Balana, Cynthia D. and de Guzman, Lawrence. 2010. "Its Official: PH Bests India as No. 1 inBPO ". Philippine Daily Inquirer . December 4. (accessed February 2, 2011)

Celino, Felipe V. 2010. "Doctor Builds Hospital Cum Hotel in Capiz". Philippine Daily Inquirer . January 2.(accessed February 2, 2011)

Ilagan-Bian, Joji. 2008. "Medical tourism in beautiful Mindanao ". Philippine Daily Inquirer . May 29.(accessed February 2, 2011)

Sibal, Jorge V. 2006. Strengthening Offshoring in the Philippines: Issues and Concerns. (accessed February2, 2011)

Other sources:

Cinemalaya Indang Village - The British Village in the Philippines

Further readings:

Century Properties. Investor's Guide to the Philippines .

Dolan, Ronald E. (ed., 1991). Philippines: A Country Study . Washington: GPO for the Library ofCongress.is

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