“OPPORTUNITIES FOR KOREAN INVESTORS IN

PHILIPPINE ECONOMIC ZONES”

A presentation for the:

PHILIPPINE INVESTMENT SEMINAR

by
LILIA B. DE LIMA
Director General, PEZA
and
Undersecretary, Department of Trade and Industry

22/F Diamond Hall, The Plaza Hotel, Seoul, Korea

10:00 AM, May 7, 2013
“OPPORTUNITIES FOR KOREAN INVESTORS IN
PHILIPPINE ECONOMIC ZONES”
A presentation for the:

PHILIPPINE INVESTMENT SEMINAR

by
LILIA B. DE LIMA
Director General, PEZA
and
Undersecretary, Department of Trade and Industry

Guest House, Hanyang University, Ansan, Korea

10:00 AM, May 8, 2013
 Philippine Economic Zone Authority

An investment promotion and incentive granting

agency attached to the Department of Trade and
Industry.

Reinforce Government’s efforts to:

• Promote Investments
• Create Employment
• Generate Exports
 16 EPZA- REGISTERED
PUBLIC & PRIVATE ECONOMIC ZONES
( 1969 - 1994)
LUISITA INDUSTRIAL PARK
SUBIC SHIP. ENG’G. INC.
BAGUIO EPZ VICTORIA WAVE

CARMELRAY DEV’T. CORP.

BATAAN EPZ
GATEWAY BUSINESS PARK
CAVITE EPZ
LIGHT IND. & SCIENCE PARK

LAGUNA TECHNOPARK

LAGUNA INT’L. IND’L PARK

MACTAN EPZ
TABANGAO SPECIAL EPZ

FIRST CAVITE IND’L. ESTATE

LEYTE IND’L. DEV’T ESTATE

MACTAN ECOZONE II

Total Area : 3,183 hectares

 TOTAL OF 281 ECONOMIC ZONES *
BAGUIO CITY ECONOMIC ZONE
JOHN HAY SPECIAL TOURISM ECONOMIC ZONE
MARVIN PLAZA BUILDING
DPC PLACE BUILDING as of 31 March 2013 3OOD TERMINAL INC. SEZ
EMI SPECIAL ECOZONE
SANCTUARY IT BUILDING MSE CENTER BATAAN ECONOMIC ZONE CAVITE ECONOMIC ZONE
SM BAGUIO CYBERZONE BUILDING TRAFALGAR PLAZA SUBIC SHIPYARD LAGUNA INT’L. INDUSTRIAL PARK
FORT ILOCANDIA TOURISM ECONOMIC ZONE OCTAGON IT BUILDING PLASTIC PROCESSING CENTER SEZ LIGHT INDUSTRY & SCIENCE PARK I
PANGASINAN INDUSTRIAL PARK II VITRO INTERNET DATA CENTER BUILDING HERMOSA ECOZONE LIGHT INDUSTRY & SCIENCE PARK II
LUISITA INDUSTRIAL PARK WYNSUM CORPORATE PLAZA IT BUILDING LEYTE IND’L. DEVELOPMENT ESTATE LIGHT INDUSTRY & SCIENCE PARK III
TECO SPECIAL ECONOMIC ZONE TRANSCOM CENTER MEGACENTER IT BUILDING TABANGAO SPECIAL ECONOMIC ZONE
TARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II ORIENT SQUARE IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK LAGUNA TECHNOPARK
SM CITY PAMPANGA RIVERBANK CENTER ICT BLDG. I JOSE PANGANIBAN SEZ LAGUNA TECHNOPARK ANNEX
ROBINSONS LUISITA RIVERBANK CENTER ICT BLDG II MISIBIS RESORTS AND ESTATES FIRST CAVITE INDUSTRIAL ESTATE
CLARK TI SPECIAL ECONOMIC ZONE BLUE WAVE MARIKINA RAPU-RAPU ECOZONE GATEWAY BUSINESS PARK
ANGELES INDUSTRIAL PARK UP SCIENCE & TECHNOLOGY PARK (South) KEPPEL PHILIPPINES MARINE SPECIAL ECONOMIC ZONE
PAMPANGA EXPORT PROCESSING ZONE UP SCIENCE & TECHNOLOGY PARK (North) GREENFIELD AUTOMOTIVE PARK
STA. MARIA INDUSTRIAL PARK YTMI REALTY SPECIAL ECONOMIC ZONE
SUPIMA ECIRCLE LIMA TECHNOLOGY CENTER
PHILIPPINE PACKING AGRICULTURAL EPZ COCOCHEM AGRO INDUSTRIAL PARK
VICTORIA WAVE PEOPLE’S TECHNOLOGY COMPLEX
ROBINSONS PLACE NOVALICHES SAN LAZARO TOURISM AND BUSINESS PARK
DILIMAN IT BUILDING GOLDEN MILE BUSINESS PARK
CONVERGYS IT BUILDING FIRST PHILIPPINE INDUSTRIAL PARK
HTMT CYBER PARK TIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONE
EDSA CENTRAL IT CENTER CARMELRAY INDUSTRIAL PARK
SUN PLAZA CARMELRAY INDUSTRIAL PARK II
EDSA CENTRAL IT CENTER 2 CALAMBA PREMIERE INTERNATIONAL PARK
E-SQUARE INFORMATION TECHNOLOGY PARK TOYOTA STA. ROSA SEZ
TOTAL CORPORATE CENTER I AG&P SPECIAL ECONOMIC ZONE
MCKINLEY HILL CYBER PARK MANILA DAIICHI INDUSTRIAL PARK
MARKET! MARKET! ALLEGIS IT PARK
ST. LUKE’S MEDICAL CENTER GLOBAL CITY FILINVEST TECHNOLOGY PARK - CALAMBA
MULTINATIONAL BANCORPORATION EASTBAY ARTS, RECREATIONAL AND TOURISM
PEOPLESUPPORT CENTER IT BUILDING SM CITY BACOOR
NORTHGATE CYBERZONE LAKESIDE EVOZONE
METROPOLIS STAR ROBINSONS BIG R SUPERCENTER
MACROASIA ECOZONE STA. ROSA COMMERCIAL IT PARK
ASAHI SPECIAL ECONOMIC ZONE ROBINSONS PLACE STA. ROSA
EUGENIO LOPEZ JR. COMMUNICATION CENTER SAINT FRANCES CABRINI MEDICAL TOURISM PARK
GLOBAL TRADE CENTER PHILTOWN TECHNOLOGY PARK
EASTWOOD CITY CYBERPARK ROBINSONS PLACE LIPA
SMNE IT CENTER PAMALICAN ISLAND TOURISM ECOZONE
EXPORTBANK PLAZA BUILDING CAMARINES SUR IT PARK
THE ENTERPRISE CENTER BORACAY ECO-VILLAGE RESORT
RCBC PLAZA MACTAN ECONOMIC ZONE
BURGUNDY CORPORATE TOWER BIGFOOT IT PARK
LIBRAN HOUSE IT CENTER MACTAN ECONOMIC ZONE II
MJ PLAZA SYNERGIS IT CENTER HDMF-WTCI IT TOWER
MANILA HARBOUR CENTER CEBU IT TOWER
NEWPORT CITY CYBERTOURISM ZONE MANGO SQUARE
SM ICITY CEBU CEBU SOUTH ROAD PROPERTIES
SM ICITY 2 ARCENAS ESTATE IT BUILDING
SM CYBERZONE 1 A. D. GOTHONG IT CENTER
G.T. TOWER INTERNATIONAL JY SQUARE IT CENTER
THE PASEO CENTER IT BUILDING JY SQUARE IT CENTER III
AMKOR TECHNOLOGY CEBU LIGHT INDUSTRIAL PARK
PACIFIC INFORMATION TECHNOLOGY CENTER LEXMARK PLAZA
JGC PHILIPPINES BUILDING OAKRIDGE INFORMATION TECHNOLOGY CENTER
SDC IT BUILDING PHIL. BXT CORP. TOURISM ECONOMIC ZONE
ASIAN STAR BUILDING PIONEER HOUSE CEBU
THE PARAGON CORPORATE CENTRE WEST CEBU INDUSTRIAL PARK
ROBINSONS CYBERPARK NEW CEBU TOWNSHIP
ROBINSONS-EQUITABLE TOWER MRI ECONOMIC ZONE
PBCOM TOWER HVG ARCADE IT PARK
ANSON’S CENTER INNOVE IT PLAZA
SUMMIT ONE OFFICE TOWER ASIATOWN IT PARK
PHILAMLIFE I.T. BUILDING FEDERATED IT PARK
6750 AYALA AVE. BLDG. DAMOSA IT PARK
6780 AYALA ROBINSONS CYBERGATE CENTER
6788 AYALA AVE. BLDG. PUEBLO DE ORO IT PARK
JG SUMMIT CENTER JASAAN MIS. ORIENTAL ECOZONE
DELA ROSA E-SERVICES BUILDING BUKIDNON AGRO-RESOURCES EXPORT ZONE
SM MAKATI CYBERZONE BUILDING DBP IT PLAZA
SM MAKATI CYBER ZONE 2 BUILDING THE BLOCK IT PARK
GLORIETTA 5 ONE SANPARQ
UNIONBANK PLAZA
BPI BUENDIA CENTER
* Legend: LOPUE'S EAST I. T. CENTER
LUXUR PLAZA ITFORMATION CENTRE
ALLEGRO IT CENTER
EAST CYBER GATE
Manufacturing Economic Zones 65 SMCI IT CENTER
CIIF AGRO-INDUSTRIAL PARK
WORLDWIDE CORPORATE CENTER Information Technology Parks / Centers 180 RIO TUBA EXPORT PROCESSING ZONE
GATEWAY OFFICE TOWER SARANGANI ECONOMIC DEVELOPMENT ZONE
CYBER PARK BUILDING ONE Tourism Economic Zones 16 SRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONE
PACIFIC STAR BUILDING SRC CALUMPANG ECONOMIC DEV’T. ZONE
PHILAMLIFE IT TOWER Medical Tourism Park /Center 2 FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK
NISCOM IT BUILDING NCCC DAVAO IT CENTER
INSULAR LIFE BUILDING Agro-Industrial 18 LUISA AVENUE SQUARE IT CENTER
INSULAR LIFE CORPORATE CENTER NCCC DAVAO IT CENTER
MANTICAO ECOZONE CORPORATION SEZ
 65 Manufacturing

180 IT Parks (39) and IT Centers (141)

16 Tourism Ecozones

2 Medical Tourism Park / Center

18 Agro-Industrial Parks
 ECONOMIC ZONE INVESTMENTS
320 8.19 %
41.1 %

EPZA
280
‘86 -’93 12.7 B
1994 9.6 B
240 PEZA 16.6 %
1995 52.5 B
1996 65.3 B
200 1997 159.7 B
1998 96.9 B 13 %
1999 155.7 B
2000 156.7 B 144 % 61 % .6% 16 %
160 2001 80.8 B
2002 38.7 B 60 %
2003 31.7 B
120 2004 50.5 B
2005 67.2 B
2006 83.7 B 25 %
2007 133.7 B 24% 33 %
80 2008 154.8 B 449%
2009 175.4 B 57 %
2010 204.4 B
40 2011 288.3 B
2012 311.9 B

0
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

1995 – 2012 Economic Zone Investments : P 2.306 Trillion

 LOCATOR INVESTMENTS BY NATIONALITY
( 1995 – 2012 )

20.87 % Filipino
32.08 % 17.79 % American
Japanese 10.15 % Dutch
5.95 % British
3.75 % Korean
3.01 % Singaporean
1.37 % German
1.14 % Swiss
3.89 % Others
 LOCATOR INVESTMENTS BY PRODUCT SECTOR
( 1995 – 2012 )

9.18 % Metals/Fabricated Metal Products

8.06 % Information Technology Services
7.01 % Tourism
5.60 % Transport (Shipbuilding,
41.50 % Car Parts, Equipment)
Electronics / 4.95 % Electrical Machinery
Semiconductors and Apparatus
2.55 % Medical, Precision and
Optical Instruments
1.60 % Medical Tourism
1.39 % Rubber and Plastic Products
0.94 % Chemical and Chemical Products
17.22 % Other Manufactures
 TOTAL PHILIPPINE COMMODITY EXPORTS
( Billion U.S. Dollars )
Economic Zone Exports
2.7 4.3 6.5 10.6 13.3 15.8 20.0 19.5 22.7 27.2 30.7 31.6 35.1 39.0 38.0 28.9 36.1 36.3
60

50.5 51.5
50 49.1
47.4 48.0

39.7 41.3
40 38.1 38.4
35.2 36.2
35.0
32.2
29.5
30
25.2

20.5 45%
17.4 53%
20
45% 55% 47%
13.5 32% 42%
25% 55% 61% 65%
68% 58% 74% 70%
20% 75% 77%
10 39% 35% 75% 77% 77% 77% 30%
80% 26%
25% 23% 23% 23% 23% 75% 76%
25% 24%

0
10.7 13.2 14.0 14.6 16.2 19.2 18.1 12.7 12.5 9.0 9.0 9.6 12.3 11.5 11.1 9.5 15.4 11.7

Others
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
 WHY INVEST IN
THE PHILIPPINES
 FILIPINO WORKERS
Among the Best in the World
THE COUNTRY’S COMPETITIVE EDGE
Literate, English – speaking, easy to train,
hardworking and very friendly

In the IT Service Sector

Filipino Workers are

considered the new breed of
world-class service
professionals and
are referred to as
Global Knowledge Workers
because they are intelligent
and able to compete
at the highest levels
among the best in the world.
 VERY FAST LEARNING CURVE
OF FILIPINO WORKERS

• 8 weeks (2 months) to train Filipino

workers

• Compared to 16 to 24 weeks (4 to 6
months) to train others
 BUSINESS-FRIENDLY POLICIES
• 100% Foreign Ownership of Companies;

• Basic rights of Investors are guaranteed (right to remit

profits and pay foreign obligations, right to repatriate
investments)

• Simplified investments procedures

 STRATEGIC LOCATION

Russia
Canada

United Germany
Kingdom EUROPE
France
United States
Korea of America
China Japan
Middle
Taiwan
East Atlantic Ocean
Hong Kong Philippines
Africa India
Thailand
Malaysia
Singapore Pacific Ocean South
Indonesia America

Australia
New Zealand
 VERY HOSPITABLE and COMFORTABLE
SECOND HOME to EXPATRIATES

• Very friendly attitude of Filipinos towards foreigners

• Availability of quality primary and secondary education
Presence of International Schools
• Housing closest to meeting western standards at very
reasonable rental rates
• Best sporting and recreational facilities
Many world-class golf courses.
• World class health care services

(Result of a survey conducted on expatriates in Asia)

 Philippines Most Popular Expansion Destination
of American Companies in Asia

Source: Survey Conducted by the US Chambers of Commerce in ASEAN

Manila Bulletin, September 4, 2012
 WHY INVEST IN
PEZA ECONOMIC ZONES
A. FISCAL INCENTIVES
B. NON-FISCAL INCENTIVES
 FISCAL INCENTIVES for EXPORT COMPANIES

• Income Tax Holiday (ITH) or Exemption from Corporate Income Tax

for four years, extendable to a maximum of eight years;

• After the ITH period, payment of the special 5% Tax on Gross Income,
in lieu of all national and local taxes;

• Exemption from duties and taxes on imported capital equipment,

spare parts, supplies, and raw materials;

• Domestic sales allowance of up to 30% of total sales;

• Zero Value-Added Tax (VAT) Rate on local purchases to include

telecommunications, power, and water bills;

• Exemption from payment of local government taxes and fees.

 NON-FISCAL INCENTIVES for EXPORT COMPANIES

• Employment of foreign nationals;

• Special visa for foreign investors and immediate family members;

• Unequalled service by PEZA.

 PEZA IS A
ONE-STOP SHOP
• Building and Occupancy Permits are issued by PEZA.
• Import and Export Permits are issued by PEZA.
• Automated and web-based Import & Export Procedures and e-
Payment System (Paperless Transactions).
• Special multiple-entry non-immigrant visa processed in PEZA.
• Environment Clearance processed thru PEZA.
• Exemption from Local Government Permits and Fees.
• Registration requirements simplified, registration forms
downloadable from website and uncomplicated, approval made
easy.
 PEZA IS A
“NON-STOP SHOP”
• At the zones, PEZA provides 24 hours a day, 7
days a week of continuous service to locator
companies.

• The Director General herself and other PEZA

officials are on call 24 hours a day, 7 days a
week.
 In PEZA,

• NO RED TAPE
• ONLY RED CARPET TREATMENT
 In PEZA, there is
NO GRAFT
NO CORRUPTION
 ISO 9001:2008
PEZA’s Quality
Management System is
certified ISO 9001:2008.

PEZA is certified ISO

9001:2008 for all its
processes, at all levels, in
all sites, nationwide.
ONLY PEZA CITED FOR BEST PRACTICE
AMONG ECONOMIC ZONES WORLDWIDE

“Under PEZA, the Philippines has shown dramatic

improvements in Investment Climate.
End Result – PEZA is a shining example of
successful regulatory reform improving overall
investment climate in the country”

Study of Gohan Akinci Foreign Investment Advisory

Services (FIAS), International Finance Corporation of the
World Bank (IFC-WB)
We now have a
Reformist
Government that
is open for
business.

President Aquino’s
Policy Thrusts:
1. Good Governance
2. Level Playing Field
3. Transparency
4. No Corruption
 TOP ECONOMIC ZONE INVESTORS
TI (Philippines), Inc. Electronics American/Dutch
Taganito Hpal Nickel Corp. Basic Metals Japanese
Toshiba Information Electronics Japanese
Tiger Resort Tourism American/Japan
Sunpower Philippines Solar Cells American/Cayman
Ibiden Philippines Electronics Japanese
Coral Bay Nickel Corp. Basic Metals Japanese
Amkor Technology Electronics American/Sing
NXP Semiconductors Electronics Dutch
Canon Business Machines Electronics Japanese
Hoya Glass Disk Electronics Japanese
Epson Precision Electronics Japanese
 TOP ECONOMIC ZONE INVESTORS

Travellers International Tourism Filipino

HGST Philippines Electronics Dutch
Rohm Electronics Electronics Singaporean
Samsung Electro-Mech Electronics Korean
St. Luke’s Medical Center Medical Tourism Filipino
Tsuneishi Heavy Ind Shipbuilding Japanese
STMicroelectronics, Inc. Electronics Swiss
Integrated Micro Electronics British
Panasonic Precision Electronics Dutch
Sureste Properties, Inc. Tourism Filipino
Toyota Autoparts Automotive Japanese
 TOP ECONOMIC ZONE INVESTORS
Convergys IT American
American Power Electrical Mach American
Lufthansa Technik Air Transport German
Pilipinas Kao, Inc. Chemical Products Japanese
Nidec Phils. Electronics Japanese
TDK Phils. Electronics Japanese
Taiyo Yuden Electronics Japanese
Analog Devices Electronics American/Dutch
Green Future Innovation Agro-Industrial Filipino
Accenture IT Dutch
JP Morgan Chase Bank IT American
On Semiconductor Electronics American
 TOP ECONOMIC ZONE INVESTORS
Continental Temic Electronics German
Schweitzer-Mauduit RTL Tobacco Products American
Brother Industries Office Equipment Japanese
Terumo Phil Medical Instrm’t Japanese
Lexmark International Office Equipment Swiss
House Technology Plastic Products Singaporean
PASAR Basic Metals Filipino
Samsung Electronics Electronics Korean
Teletech IT American
Stream International IT American/Dutch
PV Tech Electrical Mach Singaporean
Cypress Electronics American
 290 KOREAN
Locator Enterprises
are operating in
PEZA Economic Zones
 KOREAN ENTERPRISES IN PEZA ECONOMIC ZONES
INDUSTRY SECTOR NO. OF ENTERPRISES

MANUFACTURING 223
Electronics and Semiconductor 83
Garments and Textiles 49
Fabricated Metal Products 32
Rubber and Plastic Products 27
Paper and Paper Products 10
Recycling 9
Manufacturing, N.E.C. 6
Machineries And Equipment, N.E.C. 3
Chemicals and Chemical Products 2
Automotive and Motorcycle Products 1
Publishing and Print Media 1
Leather, Luggage, Handbags & Footwear 1
Food Products and Beverages 1
Furniture 1
INFORMATION TECHNOLOGY 16
WAREHOUSING AND STORAGE 15
HOTELS AND RESTAURANTS (TOURISM) 5

FACILITIES PROVIDERS 10

TOTAL 290
 KOREAN ELECTRONICS/SEMICON COMPANIES
Samsung Electro-Mechanics Philippines Corp.
Smart Electronics Manufacturing Service Philippines, Inc. (formerly
Samsung Electronics Phil. Manufacturing Corp.)
Yu Jin Optical Electronics, Inc.
Littelfuse Philippines, Inc.
Daeduck Philippines, Inc.
Danam Philippines, Inc.
Dae Kyung Philippines Co., Inc.
Hysonic Philippines, Inc.
Moatech Manufacturing Phils., Inc.
Optis Philippines, Inc.
KOREAN GARMENTS ENTERPRISES
Finetex Technology Phils. Corp
K-Phil. Inc.
Gold & Green Apparel
S.D. Philippines, Inc.
Fivics Corporation
Phils-Jeon Garments, Inc.
Philstar Hosiery, Inc.
S & Yoo Apparel Corp.
Sein Together International Philippines, Inc.
Do First Ms Philippines Corporation
KOREAN FABRICATED METAL ENTERPRISES
Shin Heung Electro-Digital, Inc.
POS-CO Philippine Manila Processing Center Inc.
Prima Tech Philippines, Inc.
Samhwan Steel Philippines, Inc.
Jin-Hung Technology Philippines Corporation
Fortunecross Philippines, Inc.
S & G Precision, Inc.
Bugil Technology, Inc.
Youngsin-Tronics, Inc.
Sam Kyung Electronics, Inc.
KOREAN RUBBER AND PLASTIC
PRODUCTS ENTERPRISES
CP Eltech Phils. Inc.
KJ Springs & Plastics Technology, Inc.
P.L. Technology, Inc.
LTech Machine Corporation
Tri-Ocean Covering Corporation
ADT Adtech Protective Film Philippines, Inc.
Dong Wu Plastic, Inc.
Philko Tech Corporation
Shin Lim Industrial Corporation
Academy Plastic Model Toy Co., Ltd.
KOREAN PAPER ENTERPRISES

Thomas Asia Packaging Corporation

Hwa Ryoung Corp.
E-Soo Phils. Packaging Inc.
A.P. Carton Box, Inc.
Suhpack Philippines, Inc.

KOREAN RECYCLING ENTERPRISES

Mobilution, Inc.
Sinojoy, Inc.
S & S Industries Development, Inc.
Dae Yun Co., Inc.
Wow Recycling Mfg., Inc.
KOREAN MANUFACTURING, N.E.C. ENTERPRISES

Ye-Sung Technology, Inc.

J-Davan International, Inc.
Hitech & C Phils. Co. Ltd.
Younghwe Phils., Inc.

KOREAN TOURISM ENTERPRISES

Donggwang Clark Corporation

Phil. BXT Corp.
Jung Ahn Developers, Inc.
Joil.Phil Corporation
KOREAN LEATHER, LUGGAGE, HANDBAGS AND FOOTWEAR
ENTERPRISES
Midland Manufacturing Phils., Inc.

KOREAN I.T. ENTERPRISES

U.ENAI Inc.
Uccess Philippines, Inc.
YBM PNT, Inc.
Westgate Contact Solutions Inc.
Education E-lamp Cebu, Inc.
Chungdahm (Phils.), Inc.
IWILLPASS Ltd., Inc.
 Philippines’ Competitive Advantage on
Business Environment in Comparison to
other Asian Countries

January 2012
Japan External Trade Organization (JETRO) Manila
1. Moderate Cost
 1.1 Problems of Increasing Financial Costs
(%)
0 10 20 30 40 50 60 70

China 64.1

Malaysia 61.5

Thailand 56.7

India 54.6

Vietnam 53.6

Indonesia 51.9

Philippines 46.7
 1.2 Problems in Shortage of Land/Offices, Rising
Land Prices/Rental
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
(%)
India 32.0

Vietnam 18.0

Indonesia 17.2

Thailand 12.7

Malaysia 9.8

Philippines 5.8
 1.3 Problems in Skyrocketing Payroll Costs
(%)
0 10 20 30 40 50 60 70

Vietnam 61.3

Thailand 48.1

India 45.2

Indonesia 40.8

Malaysia 27.5

Philippines 18.2
2. Sufficient Labor Supply
 2.1 Difficulty in Recruiting General Staff
(%)
0 5 10 15 20 25 30 35 40

Vietnam 36.7

Malaysia 31.2

Thailand 31.1

China 28.6

Indonesia 4.4

India 4.2

Philippines 3.2
 2.3 Low Rate of Worker’s Employment Retention
(%)
0.0 10.0 20.0 30.0 40.0 50.0 60.0

Vietnam 48.7

Malaysia 42.5

India 41.6

China 39.0

Thailand 33.6

Philippines 30.6
 2.4 Problems of Worker’s Competency
(%)
0 10 20 30 40 50 60

Myanmar 56.3
Vietnam 48.7
China 47.6
India 45.8
Malaysia 44.7
Indonesia 42.2
Thailand 40.9
Philippines 37.9
 2.5 Difficulty in Quality Control
(Manufacturing Only)
(%)
0 10 20 30 40 50

India 45.5

China 43.4

Malaysia 41.0

Thailand 40.7

Vietnam 39.3

Indonesia 28.7

Philippines 26.7
 2.2 Number of Strikes/Lockouts
(Unit: Number)
２００８ ２００９ ２０１０ ２０１１

Philippines ５ ４ ８ ２

Thailand 7 5 3 14

Vietnam ７２０ ２１８ ４２２ ８５７

India 421 345 382 389

(Source) Philippines: National  Conciliation and Mediation Board
Thailand: Department of Labour Protection and Welfare
Vietnam: Ministry of Labor, War Invalids & Social  Affairs
India: Ministry of Labour & Employment, Labour Bureau 
 Aging Asian Countries but Phils.
Working Age (15-64) Population

2.00
1.80
Philippines
1.60
Y2010=1

1.40
1.20
Indonesia

1.00 Thailand Vietnam

0.80
China
0.60
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
54
Data）UN, “World Population Prospectus,” The 2010 Revision
KOREA BUSINESS SUPPORT CENTER - MANILA

1. Assists Korean Businessmen wanting to set up business in the

Philippines;
2. Strengthen trade and economic relations between Korea and the
Philippines;
3. Enable Korean Businessmen to have a better understanding of
the Philippines’ trade, economic and investment policies.
 WHAT SOME KOREAN
INVESTORS SAY ABOUT THE
PHILIPPINES AND PEZA
 Sun Hung Kim, President
Samsung Electronics Philippines Manufacturing
Corporation (SEPHIL)

SEPHIL’s main line assembly process is the half-height

operators inputting and assembling the parts of the drive/.

“SEPHIL has always believed in the bounty of the Philippines as an investment

destination. SEPHIL is also proud of the company’s Filipino engineers who have
developed a fully localized product for the international market.”
 Jung Soo Lee, President
Samsung Electro-Mechanics Philippines Corp.
Registered October 16, 1997

SEPHIL manufactures crystal oscillators at Calamba Premiere

International Park

“The availability of the 24/7 systems, efficient and trusted workforce is the key advantage of
being a PEZA registered company. I think this is the best government agency in the
Philippines. Indeed, an asset of the Philippine Government. PEZA is a good Investment Partner!”
 Chun Sue Park, Chairman
Hitec RCD Philippines, Incorporated
Registered July 3, 1996

Hitec manufactures radio control systems, accessories and

parts for use in model hobby related products at Cavite
Economic Zone

“PEZA is graft-free, was right on the money. In the 13 years we have been located here, we
have never experienced anything close to corruption that is very common in many places.
Long live PEZA and another 10 year term for Director General de Lima.”
 Yong Jun Park, Chairman
Phil BXT Corporation
Registered December 11, 2008

Phil. BXT Corp established the Imperial Palace as a tourism

economic zone in Mactan

“We are proud and honored that our project was conferred as the first PEZA Tourism
Economic Zone in Cebu. But beyond that distinction, the privileges and incentives that go
with the PEZA zone status are a big boost to our confidence in our investment in the
Philippines. In the current world financial state, businesses need all the lifelines they could
get, and PEZA has extended to us one of the longest and strongest life-line of all.”
 Kwan Sun Jin
President
Calamba Shinei Industry Phils., Corp.

Manufactures computer peripherals at Calamba Premiere

International Park

“They were really impressed*, particularly with PEZA economic zones and enterprises. PEZA’s
programs for attracting more investors and commitment of delivering utmost service to them
created a very positive impression. We are planning to invite more Japanese and Korean small
and medium business investors to visit PEZA economic zones in the very near future.”

“Again, we thank you for your commitment and continued support to our company.”

*Referring to Korean investors who visited their plant facility

 Oh Eng Leong
Finance Director and Site Controller STMicroelectronics
and
ST-Ericsson (Philippines), Inc.

It is with great pleasure and honor working with the people in PEZA due to their professionalism,
business acumen and high integrity. The service extended to us is unequalled and excellent.

I am very proud to say "PEZA has excelled very well, has contributed and will continue to
contribute vastly to the development to the semiconductors industry in the Philippines". I have
very strong confidence and trust in the leadership, all employees and officers of PEZA for their
strong commitment to serve the nation and business community with true faith and dedication.
 AWAITING
YOUR
INVESTMENTS !