PH-SoKor ties span generations

The recent buying mission of South Korea’s largest association of importers to the Philippines attests to the long-standing and strong bilateral relations between the Philippines and South Korea.

“This visit presents another window of opportunity, allowing the Philippines and the Republic of Korea to further cultivate its trade relations and synergies,” Department of Trade and Industry Undersecretary Ponciano C. Manalo, Jr. said during the networking dinner organized by the DTI for 182-member delegation of the Korea Importers’ Association’s (KOIMA) buying mission.

Aside from the networking dinner, the DTI also organized a trade and investment business forum for the delegation, which is composed of 103 chief executive officers (CEOs) and senior level executives, and 79 KOIMA officials, staff, and spouses of KOIMA delegates. A business matching session was also arranged for them to meet with 189 Filipino businessmen.

KOIMA covers 70 percent of Korea's total imports, which reached US$519 billion in 2012, and composed of more than 8,000 importers, supplying Korea’s end-user principals, manufacturers and processors, distributors and retailers, and the government’s procurement agencies.

“The relationship between Philippines and the Republic of Korea has been significant-- from its noble beginnings of a military alliance with then 2nd lieutenant Fidel Ramos leading the platoon who captured Hill Eerie and now, to the advent of socio-cultural exchanges with the arrival of K-Pop and Koreanovelas into the Philippines,” Manalo said.

“We also share an interesting bit of political history. I remember an anecdote that was shared with me by Ambassador Lee Hyuk when we met last May 9. The late Benigno Aquino, Jr., father of President Aquino, at age 17, was the youngest war correspondent ever to cover the Korean war for a Philippine daily newspaper in 1949,” Manalo added.

“Since opening its diplomatic ties in 1949, the two nations have been on close relationships and keep expanding cooperation in various fields of politic, economy, culture and trade through active exchanges among many government officials led by the Presidents of both nations,” KOIMA Chairman Thomas T.Y. Shinn said during the trade and investment forum.

Manalo noted economic ties of the Philippines with the Republic of Korea are “ever more vibrant under the leadership of President Benigno Aquino III”.

Korea is the 5th biggest investor in the Philippines and among the country’s top trading partners. The trade volume between Korea and the Philippines amounted to US$ 7.4 billion in 2012. Korea is the Philippines’ 6th largest export market and the 5th import source.

The Philippine exports to Korea mainly comprise of electronics and semiconductors. The Philippines supplies 99 percent of the banana import requirements of Korea. Philippine fruits such as banana and pineapple hold a 95 percent market share, valued at US$260 million in Korea.

Korea has also continuously boosted tourism in the Philippines, and led the number of tourist arrivals at 406,595 from January to April this year, a 24.65 percent share of all inbound tourist traffic.

“This puts the Philippines on track in achieving this year’s tourist arrivals target of 5.5 million,” Manalo said.

Manalo also encouraged the Korean delegation not only to look at the Philippines as a trade partner and a tourist destination but also as a potential investment location to grow your business in.

“With continuous improvements in our economy backed by multiple, strong credit rating, the Philippines is ready more than ever for business and open to accommodate Korean businesses,” Manalo said.

“More importantly, with the positive outlook given by a Korean credit rating agency Nice Investors Services Ltd., we are confident that more Korean investors would strongly consider the Philippines as their future investment destination,” Manalo added.

He also encouraged the Korean businessmen to make the Philippines their second home and spend their retirement here as a permanent resident by availing of the Special Resident Retiree’s Visa (SRRV). (END)

Source: DTI Public Relations Office

Philippine Investment Promotion Agencies

Invest Philippines is the Government's Network of Investment Promotion Agencies Board of InvestmentsBoard of Investments pezaPhilippine Economic Zone Authority
ASEZAAurora Pacific Economic Zone and Freeport Authority AFABAuthority of the Freeport Area of Bataan bcdaBases Conversion and Development Authority
cdcClark Development Corporation cezaCagayan Economic Zone Authority piaPHIVIDEC Industrial Authority
praPhilippine Retirement Authority REGIONAL BOARD OF INVESTMENTS – ARMMRegional Board of Investments – ARMM sbmaSubic Bay Metropolitan Authority
tiezaSmallTourism Infrastructure and Enterprise Zone Authority zezaZamboanga City Special Economic Zone Authority

Garments firms to export to US and Australia

The Board of Investments (BOI) approved the Php 13.64 million projects of H&S Inc., and I2 Industries Manufacturing Inc. H&S Inc is an expanding export producer of children’s dresses while I2 Industries Manufacturing Inc. is a new export producer of children’s dresses, boy’s polo shirts and shorts.

H&S invested PhpP9.64 million to expand its existing facility in Binangonan, Rizal to produce an additional 150,000 dozens of dresses annually to accommodate the increasing demand of its products. The firm currently produces 31,200 dozens per year. All of its products are intended for export to the United States and eventually to South American countries. Its commercial operation began on June 2013 and is expected to provide employment to 200 personnel.

I2 Industries Manufacturing Inc. invested Php 4 million for its garment facility in San Ildefonso, Bulacan. The firm will manufacture 25,000 dozens annually of childrens’ dresses and will employ 85 people. Its commercial operation will start on August 2013. All of its production will be exported to the U.S. and Australia.

These projects fall under the Export Activities component of the Investments Priorities Plan (IPP). The current Philippine export products primarily include electronics, garments and textiles, footwear and leather goods, furniture, jewelry, marine and aquamarine, mineral products & others.

The BOI is the lead implementor of the IPP. The Plan is annually crafted to identify priority sectors that will increase investment inflows and generate more jobs.

These projects will increase export sales of the garments sector. In 2012, official figures from the National Statistics Office (NSO) showed that 2012 garments export sales registered at US$1.57 billion, down by 17% from US $1.89 billion in 2011. Latest statistics revealed that from January to April 2013, garments exports totaled US$546.90 million, a 12% decline compared to last year’s US$621.70 million*. (END)

Source: DTI Public Relations Office

KOIMA delegation to the Phls biggest ever.

koima1 The buying mission of South Korea’s largest association of importers Korea Importer’s Association (KOIMA) met with their Filipino counterparts during the business matching session at the Luzon Ballroom, Sofitel Philippine Plaza Manila last July 18, 2013. The 182- KOIMA delegation was composed of 103 KOIMA chief executive officers (CEOs) and senior level executives. The visit reaffirms the increasing confidence of Korean business leaders on the Philippines’ growing commercial importance within the Association of Southeast Asian Nations (ASEAN). The KOIMA delegation’s decision to select the Philippines over Thailand and Myanmar this year for their summer buying mission boosts our position as a reliable supplier of raw materials and consumer manufactures and as a hub to access the larger ASEAN market. The KOIMA is composed of 8,000 importers and handles 70 percent of Korea’s total imports, which reached US$519 billion in 2012. KOIMA’s importation requirements cover a wide range of products, and include agricultural produce, food, industrial products, and consumer manufactures.

BOI to endorse 2013 IPP to Pres. Aquino

The Board of Investments (BOI) is set to endorse the proposed 2013 Investment Priorities Plan (IPP) to President Benigno S. Aquino III.

The BOI spearheads the inter-agency efforts to annually craft the IPP. The IPP is the country's blueprint for investment promotions and a platform to attract strategic investments with impact on countryside development and employment generation.

The formulation of the IPP includes the conduct of nationwide public consultations. This year, the BOI held simultaneous public consultations in the cities of Angeles, Manila, Cebu, and Davao. The consultations were attended by members of various chambers of commerce, the academe, local government units (LGUs), the members of the inter-agency committees, non-government organizations (NGOs) and consumer organizations.

The 2013 IPP has the same priority areas as the 2012 IPP with improvements based on consultations with stakeholders. The proposed 2013 IPP roster includes Agriculture/Agribusiness and Fishery, Creative Industries/Knowledge-Based Services, Shipbuilding, Mass Housing, Iron and Steel, Energy, Infrastructure, Research and Development, Green Projects, Motor Vehicles, Strategic Projects, Hospital/Medical Services, Disaster Prevention, and Mitigation and Recovery Projects.

Unlike the 2012 IPP, incentives in the 2013 IPP will be limited to zero duty on any importation of capital equipment, spare parts and accessories by BOI-registered mining enterprises.

Likewise, the 2013 IPP adopted terminologies consistent with the Department of Health (DOH) Administrative Order No. (AO) 2012-0012 for hospitals and health facilities. The proposed IPP transferred health and medical-related activities from the Tourism sector to Hospital/Medical Services sector for a more focused classification.

Meanwhile, the BOI is already preparing for the 2014 IPP. The agency is currently undertaking studies, in partnership with the private sector in the development of the country’s industry roadmaps to support the formulation of the 2014 IPP. (END)

Source: DTI Public Relations Office