Where to Invest in the Philippines: A Look into Investment Business Opportunities in the Philippines
Researching where to invest in the Philippines can be hard, particularly if you’re not familiar with the culture that encompasses the nation. The business landscape itself is quite the formidable wall to pass through. However, with just the proper research, right advice from the right people, and the necessary immersion, you’ll be able to understand what you need to identify the best investment opportunities in the country!
Philippine Standard for Business
The Philippines is the second most populous country in Southeast Asia. As of 2016, it has been experiencing one of the fastest economic growth in the region. With most of the population having a high degree of proficiency in the English language and eagerness to work abroad or with any foreigners, the economy is showing signs of quickly advancing in the global market.
Because of this economic boom, it’s hard to pinpoint exactly where to invest in the Philippines. In fact, it’s perfectly viable to give most of your ideas a shot since the Filipino people are open to many products and services. For centuries, the Filipino people have been exposed to different cultures, ingraining a globalized mindset deep in their psyche. From the colonization by the Spanish and the Japanese to the liberation brought about by the Americans, and the multitudes of other cultures that have slowly entered the Philippines as time passed by—all of them are embedded within every single Filipino.
Businesses in the Philippines have been on the rise for several years. In 2017, the Philippines was among the top three growth performers in the region — and still is. With a 6.3% growth in GDP for the year 2018, the Philippines remains as one of the outstanding performers in Southeast Asia. That being said, data and surveys done by Bloomberg have concluded that there will be a decline in Southeast Asian growth along with a global economic slowdown. This will have a big impact on the growth that the Philippines is experiencing, but ultimately, it’s not significant enough to cause any alarm
Business Etiquette in the Philippines
Even though the majority of the Philippine business landscape is Westernized (and it shows on how operations and organizations in general work) you cannot deny that the structure is most likely influenced by the typical Filipino family. Instead of strict vertical communication and the importance of knowing your place, the business structures in the Philippines are more like a group of people with mutual respect for one another. In fact, it’s said that the most essential things to a business are mutual respect, high status, and a good reputation.
The Philippine business landscape gives importance to forming, building, and maintaining relationships. If you know your client or business partner prior to a transaction, chances are they’ll get a better deal. Meanwhile, if it’s a new venture, it will take time to soften the edges and forge a good deal.
Whether you’re starting a business or simply preparing to invest, you should already expect things to take quite a while. Patience is essential when it comes to business in the Philippines, but as it was mentioned, personal relationships will speed things up a bit.
In the Philippines, business relations are key. Personal connections, interactions, and trust are the foundation of many great companies all over the Philippines.
When it comes to these relationships, particularly between employees and employers, the status and reputation of the higher-ups are always emphasized. However, what truly defines the relationship is the mutual understanding and respect that is developed between them.
It’s paramount that you show respect to your superiors when doing business in the Philippines. It’s basically the same in other Asian countries where even a year of age difference should be treated with respect. However, business cards are less important and formalized.
Thinking of where to invest in the Philippines is fairly easy, but adapting to social norms might take a little while longer. Business etiquette in the Philippines is understandably specific and unique. Though it does have similarities with other Asian countries, it will still take time for you to fully grasp local business etiquette.
- Avoid direct or continuous eye contact. Staring is considered rude and confrontational.
- Conversations with Filipino colleagues should be expected before and after the meetings. Try to establish personal relationships with them, and be prepared to be asked a lot of personal questions.
- Dress codes should be strictly followed, especially during meetings. Power dressing is a renowned concept in the Philippines.
- Expect a slowdown in work processes and negotiations. These usually take longer than you would expect. Be patient because if you compare it with other Western countries, the processes here are definitely much slower.
- Never underestimate the influence that the family unit has on the business.
- Raising your voice should never be done because it’s a clear sign of disrespect.
Cities in the Philippines to Invest In
With the Philippines known as arguably one of the best and fastest growing economies in the region, it’s only natural to search where to invest in the Philippines. With a handful of cities starting to become more and more commercialized, business opportunities are all the more accessible.
Across the Philippines, it’s no longer just Luzon where you’ll find the country’s booming economic areas. In regions such as Visayas and Mindanao, you can find large, commercialized cities that truly emanate growth and investment opportunities.
There are many cities in the Philippines aside from Manila that are already known for their great commercial success. Some have always been hubs of business, while others are slowly reaching that level.
Bonifacio Global City
Often referred to as BGC, this neighborhood is an amazingly designed financial center. This is the fruit of the collaboration between the country’s two biggest developers, Ayala Land and Evergreen Holdings.
This district is primed with a wide variety of businesses, offices, and other commercial establishments. Countless startups and a number of the country’s premier institutions can be found in the confines of this area. It serves as a hybrid mix of office, commercial, and residential areas that perfectly fit together.
It’s believed that BGC is much like a more traversable Manila. Here, traffic is not much of an issue thanks to well-planned streets and blocks that provide access to smooth vehicle circulation, pedestrian-friendly streets, and an efficient public transport system.
This is not the case, however, when it’s literally mobbed with people. So, going to BGC needs to be planned out well to avoid heavy traffic.
That being said, BGC is a place where people go on a daily basis. Some do so because that’s where they work, some live there themselves, and some just enjoy the entertainment and the variety of choices that you find in the district.
One of the most iconic cities in the Philippines, Makati has always been filled with an abundance of business opportunities — all of which have good standings thanks to the number of people that go to the area.
This concrete jungle is known as the Wall Street of Metro Manila and the Financial Capital of the Philippines. Makati is the home of many reputable brands — both from local and international companies. Aside from that, the area is filled with many amazing entertainment and commercial centers and is littered with notable residential spaces.
Makati is the home for 40% of the country’s top 1,000 multinational corporations and renowned local companies. The economy that goes through this city is significant enough to be one of Asia’s most important financial commercial and economic hubs.
Similar to BGC, Makati is also known for its good road layout. Many places are accessible and well-managed, making the city not just a financial metropolis, but also a very clean and human-friendly area.
The “Queen City of the South” is known as one of the most affluent localities in the country. It’s robust economy and diverse commercial spaces are not something you should overlook.
What differentiates it from places like Makati and BGC is the fact that it still has this semi-provincial feel to it — a massive contrast to the very commercialized and concrete atmosphere that you usually get from the larger cities such as Makati. There is also no scarcity of beaches and natural scenery enveloping the place. It’s considered to be as developed as Metro Manila, making it a good investment hub.
Cebu is believed to be the second most important Metropolis in the Philippines, especially with the massive improvements that the BPO and IT sectors are having. Cebu is also well-known for its high concentration of condominiums—with most of which are in the higher end grade.
As of 2017, the number of condominiums in Cebu number around 15,000 to 17,000, making the real estate sector a large benefactor thanks to tourism and the BPO industry.
As the country’s largest city outside of Manila, Davao City has one of the fastest growing economies. With a 9.4% growth in 2016, it outperformed the rate that the Philippines was going at 6.9%.
Nowadays, Davao city is experiencing more and more luxury condos opening up all across the city. Just like with the other entries in this list, Davao also has a BPO sector that is persistently thriving—half of them focusing on the voice sector.
Davao has a special designation partly because of it being the capital city of the south. It’s also considered the education hub of Mindanao.
Over the past decade, Davao city has been known as the center of growth in Mindanao. The city continually showed above-average increases in its Gross Regional Domestic Product (GRDP). It’s also known as one of the country’s safest and cleanest cities, making it an extremely attractive retirement destination for many people.
The “Emerald City of the Philippines” is making its way to becoming one of the premier industrial hubs of the Philippines. In recent years, it has experienced incredible growth, mostly because of the development boom. And with the way things are going, Muntinlupa is looking to be one of the better options when it comes to investments.
Muntinlupa is home to both the Filinvest Corporate City and Ayala Land’s Madrigal Business Park. These both quite literally changed the landscape of Muntinlupa. Many improvements in different aspects are ongoing, providing the city with diverse commercial spaces that are up for grabs.
Muntinlupa was also dubbed the Most Competitive and Improved City because of how much it has changed over the years. The city has become highly urbanized and industrialized while also being one of the most eco-friendly places in the country.
Aside from that, it’s also the home of the country’s most peaceful and exclusive communities.
Popular Business Investments in the Philippines
China and Philippine business opportunities are everywhere. Even the smallest ideas can become the next big thing. All you have to do is invest your time and money into making things into reality. Once you’ve determined where to invest in the Philippines, it’s high time that you choose what to invest in.
This point encompasses all the businesses that deal with products of different kinds, be it skincare, clothing, luggage, bags, and the like. Of course, there are already hundreds of other brands that operate in this industry. However, if you can bring about something that’s unique and practical, it might help you stand out from the rest.
Real Estate Sales and Leasing
With more and more cities becoming highly commercialized, a hidden downside is usually the minimization of residential spaces. Instead of physical space spread out on the ground, residences are slowly becoming more and more vertical with the help of condominiums. Living spaces will soon be a very expensive commodity. And by finding the right investments in where to build these residential areas, you can experience a boom in your profitability.
Restaurants and food-based businesses
The Filipino people are rarely picker eaters. Most, if not all of them are open to almost any kind of food they can find. Just take a look at the usual street food you’ll see in almost every corner!
Filipinos love eating. Every celebration or every holiday will almost always have a succulent feast as the main attraction. If you think that you have the next big thing — a dish that will be great for these, then going in this line of business is probably a great option for you!
Penetrating the Philippine Business Landscape with China Philippines United Enterprises
The Philippines is one of the frontrunners in Southeast Asia when it comes to how fast economic growth is. This means doing business with investment companies in the Philippines is one of many ways in which you can boost your profits. If you’re wondering where to invest in the Philippine market as cleanly and as quickly as possible, do it with China Philippines United Enterprises! China Philippines United Enterprises will make it easier for you to set up shop in the Philippines! For more information, visit our website here!