The Philippines has become an attractive destination for foreign investment in recent years due to its growing economy, young population, and policies aimed at liberalizing and deregulating the market. To further boost investments, the Philippine government has set up various investment promotion agencies (IPAs) tasked with attracting both foreign and domestic investors. These IPAs provide assistance such as information on regulations, incentives, and business costs to help investors enter and operate in the Philippine market. They also work to address investment barriers and improve the country’s competitiveness. This article will introduce the top IPAs in the Philippines and the services they offer to facilitate investment.
The Philippine Board of Investments is the lead IPA with nationwide scope of operations
The Philippine Board of Investments (BOI) is the primary agency responsible for promoting investments in the country. Established in 1968, BOI is an attached agency of the Department of Trade and Industry tasked with directing and coordinating investment promotion policies and programs. It offers a wide range of services including investment facilitation, processing of tax incentives, business advisory, and investment project monitoring and evaluation. The BOI focuses on attracting investments in preferred sectors like infrastructure, logistics, manufacturing, agribusiness, and services. It has over 15 regional and satellite offices across the Philippines to provide assistance to investors on the ground. Key incentives that BOI offers include income tax holidays, duty-free importation of capital equipment, tax credits on raw materials, and simplified customs procedures.
Investment promotion agencies of the Philippines’s Special Economic Zones provide localized assistance
The Philippines has several Special Economic Zones (SEZs) administered by their own investment promotion agencies that target investments in specific geographic areas. Some examples include: – The Authority of the Freeport Area of Bataan (AFAB) promotes investments in the Freeport Area of Bataan. – The Aurora Pacific Economic Zone (APECO) targets investments in Aurora Province. – The Cagayan Economic Zone Authority (CEZA) covers the Cagayan Special Economic Zone and Free Port. – The Clark Development Corporation (CDC) manages business registrations and incentives in Clark Freeport Zone. – The Subic Bay Metropolitan Authority (SBMA) operates the Subic Bay Freeport Zone. These SEZ authorities act as one-stop shops that facilitate registrations, permits, customs clearance, and other investor services within their respective zones. They also administer fiscal and non-fiscal incentives such as income tax holidays, duty-free importation of equipment and raw materials, and flexible labor policies offered in their zones.
Local government investment promotion agencies cater to investors in specific cities and municipalities
Aside from national government agencies like BOI and SEZ authorities, many local government units in the Philippines have set up their own investment promotion offices as well. These include: – Davao City Investment Promotion Center – Iloilo City Investment Promotion Center – Lapu-Lapu City Investment Promotion Center – Makati City Investment Promotion Center – Pasig City Investment and Promotion Office – Quezon City Business Permits and Licensing Office These local IPAs serve as the primary contact points for investors interested in their respective cities or municipalities. They assist in facilitating government registrations, permits, and licenses for setting up businesses and operations. Local IPAs also provide guidance on incentives and opportunities available in their specific localities.
The Philippine Economic Zone Authority develops and operates economic zones
The Philippine Economic Zone Authority (PEZA) is an investment promotion agency focused on developing and managing Export Processing Zones (EPZs), Special Economic Zones, and other economic zones throughout the country. It offers fiscal and non-fiscal incentives for investors in PEZA economic zones including income tax holidays, zero VAT on local purchases, and exemption from local government levies. PEZA assists companies in all aspects of registration, establishing operations, sourcing manpower, and other investor needs within PEZA zones. It has offices in all major economic zones to provide on-the-ground support and has over 400 IT parks, agro-industrial estates, tourism zones, and manufacturing zones under its jurisdiction.
Investment promotion agencies at Philippine embassies overseas also support foreign investors
To further improve investment facilitation services for foreign investors, the Department of Trade and Industry has established investment promotion units in Philippine embassies overseas. Examples include the Philippine Trade and Investment Centres in Los Angeles, New York, Sydney, Tokyo, Toronto, and more. These trade offices help foreign investors understand the Philippine business environment and investment procedures. They conduct investment seminars, business matching events, and other activities to encourage investment into the Philippines. The embassy investment promotion units also support approved investors in establishing their projects and act as aftercare service centers resolving any issues faced by foreign locators.
The Philippine government has established an extensive network of investment promotion agencies to boost the country’s competitiveness as an investment destination. Foreign and domestic investors can tap on their targeted services, from inquiry assistance to post-investment support. With the efforts of these IPAs, the Philippines has attracted increasing levels of investment in recent years. Tapping on their expertise and utilizing the available incentives can help both new and current investors maximize opportunities in the growing Philippine market.