Key Resources: Tropical Climate:: Abundant Stretch of Coastlines

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Key resources:

Tropical climate:

As a country consists of more than 7000 islands Philippines has a lot of


resources for foreign investors to invest.

Food manufacturing sector has the highest impact on Philippines GDP.which


is 22.6% of the gdp. It is14.9B usd industry.

Philippines has a warm tropical climate. Which is very suitable for coffee &
cocoa production. Philippines coffee industry amounts to US$4,439m & cocoa
industry amounts to US$160.9m in 2020. This industry can be a suitable
option for foreign investment.

Abundant stretch of coastlines:

Shipbuilding industry:

Philippines is the fourth-biggest shipbuilding nation, The Philippines'


abundant stretch of coastlines provides ocean access for building and repair
while the considerable water depth allows the building of large ships.

This is where the Philippines comes in. The report, which examined the role of
the country in the global shipbuilding industry and identified opportunities for
upgrading, said it is in “a unique position in the shipbuilding GVC as it has
both demand for (smaller) vessels in the domestic market and it is an exporter
of large, commercial ships for the international market.”

Export-oriented shipbuilding is a substantial contributor to the Philippines


economy, and has been so since 1994. It accounted for 2.6% of Philippine
exports, or $1.5 billion, in 2015, while the revenue generated by the
shipbuilding and repair industry was estimated at $1.6 billion. In the global
shipbuilding, the country’s role is also considerable. The Philippines is actually
the fourth largest ship producer based on gross tons. It was responsible for
2.8% of world ship completions based on gross tons and 1.3% of ship exports
in 2015.

The vessels the country exports are mostly bulk carriers and containerships,
and export is driven by foreign-owned shipbuilders. Domestic shipyards,
meanwhile, are largely focused on repairing ships, an activity where the bulk
of their revenue comes from. There are more than a hundred domestic
shipyards, 17 of them large or medium-sized, plus service and afloat
contractors.

Around 48,000 people are employed in the industry, and many of them are
located in Manila and Cebu. And while domestic firms account for the largest
share of the industry based on number yards, the two largest foreign-owned
exporters — Hanjin and Tsuneishi — are responsible for nearly all exports,
75% of employment and 97% of revenue.

Skilled labour:

The semiconductor and electronics manufacturing industry is the biggest economic


growth driver in the Philippines. Mainly composed of semiconductor manufacturing
services (73%) and electronics manufacturing services (EMS) firms (27%), the industry
employs around 3.2 million direct and indirect workers. In 2018, the segment accounted
for about $37.57 billion of commodity exports—representing more than half or about
55.67% of the country’s total exports—up by 2.83% from 2017 figures, according to the
Philippine Statistics Authority (PSA).

From January to September 2019, total electronics exports grew to $32.22 billion, up by
2.25% from the same period last year, and accounting for 61.3% of the Philippines’ total
exports, data from the Semiconductor and Electronics Industries in the Philippines Inc.
(SEIPI) shows. SEIPI is the largest organization of multinational and Filipino-owned
semiconductor and electronics companies in the Philippines, with over 346 members,
including manufacturing firms, allied and support industries, and the academe. For the
full year 2019, SEIPI expects the country’s electronics industry to register a 3% growth in
total exports despite the flat growth in the global semiconductor market.
The Philippines has several big, multinational and Filipino companies, who have
significant design as well as R&D activities with substantial investments and have the
critical mass of engineers and designers in the Philippines.

Majority of the semiconductor and electronics firms in the country are located around
Metro Manila, the CALABARZON region (Cavite, Laguna, Batangas, Rizal, and Quezon
provinces), Northern and Central Luzon, and Cebu, and have capabilities ranging from IC
packaging, PCB assembly, and full product assembly. In terms of workforce, the Filipino
talent pool is highly competitive, English-proficient, adept at technology, and has short
learning curves.

There are several homegrown electronics manufacturers in the country, whose


competitiveness and capabilities are considerably at par with their peers in the region.
For example, when it comes to full turnkey operations, the country has among the best
manufacturers in the industry. Local companies can also provide consigned PCB
assembly services, and even dedicated assembly lines.

“For the type of products that we export, for example, automotive electronics and
consumer electronics, some Filipino firms are stepping up,” says Dr. Dan Lachica,
president of the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI).
“IMI [Integrated Micro-Electronics Inc.] has automotive cameras being designed and
made here. Ionics EMS has contracts with global brands in smart home devices. For
other subsectors, there are plenty of opportunities for homegrown electronics
manufacturers to dare to compete.”

Stephen Las Marias, “A Look at the Current Philippine Electronics Manufacturing Landscape.”
(December 4,2019) Retrieved from eetasia.com: https://www.eetasia.com/a-look-at-the-current-
philippine-electronics-manufacturing-landscape-part-1/

“Philippines Shipbuilding Industry.” (March 8,2012) Retrieved from globalsecurity.org:


https://www.globalsecurity.org/military/world/philippines/industry-shipbuilding.htm

“Coffee.” (N.D.) Retrieved from statista.com:


https://www.statista.com/outlook/30010000/123/coffee/philippines

“Cocoa.” (N.D.) Retrieved from statista.com:


https://www.statista.com/outlook/30030000/123/cocoa/philippines

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