International
DTI Welcomes Indian biz Mission to PH
The Department of Trade and Industry (DTI) recently received an Indian business mission to the Philippines that intends to explore potential business opportunities, and possibly locate and expand their operations in the country.
During the mission member’s courtesy call, Domingo noted the resurgence of the manufacturing sector in the Philippines, and the growth of capital formation in the gross domestic product (GDP) by 18 percent.
The mission was organized through the Philippine Trade and Investment Center (PTIC) in New Delhi and the Federation of Indian Chambers of Commerce and Industry (FICCI).
Domingo also noted that this mission is his second meeting with the FICCI. The first was during the First India-ASEAN Business Fair and Business Conclave in New Delhi, India in March 2011.
The FICCI is the oldest and largest top business organization in India. The history of FICCI is interwoven in India’s struggle for independence, industrialization, and emergence as one of the rapidly growing economies.
The FICCI has members from India’s corporate sector, including multi-national corporation (MNC), and enjoys an indirect membership of over 250,000 companies from various regional chambers of commerce.
“India is a huge market. The distribution is excellent and you just have to find the right partner,” said Kapil Rampal, deputy head of the delegation and director of the Ivory Education Pvt. Ltd., during the DTI business forum on doing business in the Philippines.
Rampal also mentioned investment interests in pharmaceuticals, bio and thermal energy (From Rampal’s presentation), motorcycles and auto parts, mining, infrastructure, and space and defense related industry.
Rampal added that the possibilities are more than enough, and suggested to look at possibilities of collaboration and be competitive at the global level.
During the business forum, Bureau of Export Trade Promotion (BETP) Director Senen M. Perlada said that both countries can do so much, and noted that Philippine exports to India only accounted for 0.54 percent of Philippine total exports in 2013.
Total trade between the two countries grew by 8.7 percent, export by 8.6 percent, and import by 4.8 percent from 2008 to 2012, according to BETP data.
Perlada also mentioned possible products for promotion in India such as motor vehicle parts, electronic components, sanitary articles of paper (i.e. diaper, toilet paper), personal care products, high-end furniture, and garments.
Likewise, Board of Investments’ (BOI) International Marketing Department Director Angie M. Cayas mentioned the following sectors for promotion to India: public–private partnership (PPP) projects, information technology and business process management (IT-BPM), tourism related investments, and other areas of investments such as the Special Investor’s Resident Visa (SIRV) and the Retail Trade Liberalization Act of 2000, particularly categories B and D.
In an interview, PTIC in New Delhi Commercial Attaché John Paul B. Iñigo said that the delegation is happy, and anticipates another group coming to the Philippines in the next six months.
The 14-member business delegation is composed of companies from sectors such as agriculture, hotel, hospitality, education, infrastructure, airport, food products and textile.
At present, the following Indian companies have presence in the Philippines: Aditya Birla Minacs Philippines Inc., Hinduja Global Solutions Limited, L&T Infotech, Biostadt India, Lupin Ltd., State Bank of India, The New india Assurance Co. Ltd., Wipro BPO Phils. Ltd., Infosys BPO Ltd., Zydus Cadila, Claris Lifesciences Ltd, Tata Consultancy Services, Infosys Technologies, Wipro, Cognizant, HCL Technologies, Genpact Intelenet Global Services, Tech Mahindra, Aegis Ltd. (People Support), WNS Global Services, Syntel Inc., Apatech Ltd., Headstrong, Interglobe Technologies, Virtusa, and Tata Motors.
Entrepreneurship in Relation to ASEAN 2015
ONE more year and the member countries of the Association of Southeast Asian Nations (ASEAN) are gearing towards freer and wider market in its Economic Integration pushing for the realization of the ASEAN Economic Community (AEC). Such countries are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Lao PDR, Myanmar and Cambodia; with China, Japan, and South Korea in the ASEAN Plus.
To those who are not so familiar with the ASEAN Economic Integration, let me put it in simple terms – “free-flow”. With it, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike what we are used to – strict protectionism. Instead of having to spend so much in terms of tariffs and complying with bloody requirements, strict procedures and other trade burdens, trading would be a lot easier, because the aim of the ASEAN is to have zero or near zero trade barriers. This would be enjoyed by all ASEAN member countries. In addition, Southeast Asians wanting to work overseas (in ASEAN countries) would experience easier processes. Free-flow of work-force would happen. Investors could capitalize their resources freely as they expand from one nation to another nation in the ASEAN.
Entrepreneurs would directly benefit from the ASEAN Economic Integration. There is a lot to be excited about for them.
The Philippines would be able to compete in the global setting through the one market and production base of the ASEAN. In this sense, there would be unity and more productivity among the member countries. Ironically, as member countries compete in terms of the ability to offer lower prices to consumers brought by removing or lessening trade barriers, the whole of ASEAN could benefit as a group – bonded together in creating economic progress. The free-flow would give reason for entrepreneurs to be able to cut costs for their production materials, equipment and manpower, because they would be able to get it at significantly cheaper amounts. They could have the needed edge to compete with the other larger companies in the whole world.
At a regional scale, the lending and borrowing from banks would be easier as it would have to adjust with the changes and accompany the needs for capitalization of entrepreneurs. I believe that bank transactions between and among ASEAN countries would be a lot busier compared before and it would mean significant money coming in and out of the country.
The country’s local government units (LGUs) are being improved to become business-friendly and competitive. LGUs have programs that streamline Business Permits and Licensing System (BPLS) and develop the economy through the Local Economic Development (LED) programs. In this way, the country’s budding entrepreneurs who would like to take the opportunity to do business in the ASEAN would have better access to acquire the necessary documents they need to possess in order to establish legitimate enterprises.
Free-flow could not flourish if not for state-of-the-art infrastructure as well. Entrepreneurs know the hassle of transporting precious goods from one point to another. Even though we already have some notable infrastructure, there is still so much that need to be improved. With the ASEAN Economic Integration, lagging behind would not be an option. The budget and plans in developing infrastructure would have to be applied, so that the country would be able to connect with the member nations internally and externally – roads, bridges and ports would have to be made. Entrepreneurs would be able to transport their products in the country more safely and accessibly, in all of its provinces and cities and of course out of the country to all other ASEAN countries. Consequently, entrepreneurs that focus on the tourism sector would benefit from the ease of travel. Good news for all businesses in our tourist spots.
The ASEAN Economic Integration would also mean more opportunities for the country to develop its communications and information technology facilities. In this age of high technology, entrepreneurs could benefit even more from the World Wide Web when they try to compete with the tigers and reach their customers in the global setting. We know of it as entrepreneurs have established their on-line stores which are gaining more and more attention from customers who would rather remain in the comforts of their homes and order the latest products at best deals! Entrepreneurs who are home-based and who are mostly just starting up do business on-line. Why not? Communications brought by the internet has proven to be very effective and efficient.
With free-flow, the market is even wider and tougher and we could expect even greater – tons of exportation and importation dealings happening from one corner of the world to another with the use of the internet. Imagine how else entrepreneurs could speed up the increase of their sales, but with the use of the continually developing communications and information technology! Almost everything could be just one click away from happening. In order to “go with the flow”, the free-flow would have to be accompanied with improved communications and information technology.
Investors coming in the country for expansion would provide entrepreneurs that sub-contract for more opportunities to do business. Entrepreneurs who would like to invest in another ASEAN country would be encouraged and would enjoy none, if not fewer restrictions.
The Philippines would have to adjust and better its competitiveness as it would need to keep up with the requirements of the AEC and integrate with all member countries. There would be no other sensible way, but to improve. Sink or swim they say, but I am confident, our country’s entrepreneurs would have what it takes to take advantage of the free-flow and run with the tigers.
Reference:
“Rising as one: The Filipino Nation Towards The ASEAN Economic Integration” by Local Government Academy
Boon or Bane?
Editorial
The Philippines is not ready for the Initiative for ASEAN Integration (IAI) in 2015. The Initiative for ASEAN Integration refers to reducing various forms of disparities among and within member States where some pockets of underdevelopment persist, which could narrow the development gap in the region.
With the integration, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike strict protectionism. This would be enjoyed by all ASEAN member countries.
But according to Asian Development Bank, the economic integration of the Association of Southeast Asian Nations (ASEAN) will likely not be attained by 2015. Although various reasons were cited for the continued difficulties of attaining the AEC targets, what stands out is the unawareness of the private sector.
Since 2010 when this integration was first hatched, the Philippine government failed to prepare for it. In trade relations alone, where products are supposed to be exported to a less-restricted environment, the recipient chooses which products to accept or to reject. Naturally the more superior product in terms of quality and price are allowed into the member country. How can we export cheaper products when the cost of production is high? Electricity and labor costs, which are factors to production, are high.
Also, promoting greater mobility of skilled workers and better regulation and management of unskilled labor movements are to be addressed. In the Philippines, unemployment and underemployment are pervasive. Skills do not commensurate with job requirements. Can we compete with our ASEAN neighbors in the labor market?
What about our infrastructure?
There are so many things that we have to prepare for in order to be competitive. If we are not competitive, what benefit can the Initiative for ASEAN Integration do for us? Nada.
What Is China Doing?
WHAT seems evident is that China is taking small but provocative steps to assert her sovereignty over what we call the West Philippine Sea by shooing away the fishermen and some of our naval vessels who were sent to resupply some of our troops. She knows that we are no match for her much more modern and fully equipped naval vessels and so when she pushed, we backed away. She is obviously testing the waters by escalating her control over the shoals and the sea.
It would seem that what we will likely see over the next several months will be more provocative actions from China but actions carefully calibrated not to produce a reaction from the US. China in all likelihood feels, and correctly, that the US for all of the rhetoric is not eager to engage China in these waters, what with the Crimean problem the US is also facing.
In this latter case, Crimea is at the border of Russia and it was easy for Russia to mobilize forces apart from the fact that it would seem there is much Crimean sympathy to reconnect with Russia. Of course, historically, Crimea was part of Russia until her recent collapse and dismemberment.
I frankly don’t believe Russia will give in at all for all the sanction threats and other actions that Obama might threaten Russia with from 10,000 miles away. But for the US to take military action seems far-fetched. Maybe many condemning speeches at the UN. But they can’t even pass a resolution at the UN Security Council because Russia is a permanent member who will veto any such resolution.
So the carefully controlled actions of China in the South Asian seas will use minimum force, or no force at all, just threats and bluffs and sneaky moves which she has been doing anyway from quite a few years back. It will be more of simply establishing her presence because we are incapable of doing the same or resisting such efforts and our getting used to it.
Troops in small islets or shoals are ineffective if unable to move or realistically defend themselves when push comes to shove. All of these moves gain for China the dominion of the seas and the islets and shoals even if not overt total control which they have as an objective. This is the pragmatic element of China’s moves in the area. While the US appetite for confrontation is weak, China realizes that militarily they are still behind the US in rather important ways.
Furthermore, more military actions at this time can hasten the establishment of US forces here in the Far East which would make China’s objective, total South Asian hegemony a much more difficult objective. In sum, the conclusion for the moment seems to be one little step at a time while it is not yet easily quantifiable what the consequences of reckless action on China’s part might trigger. In other words, presently China has more to lose should a shooting war break out. But that will not always be the case. By 2020 or even a little earlier, the equation might be truly different. The Chinese economy will likely overtake the US by or before then, and the military equation might well be tipped more in China’s favor as the US downsizes her forces and China keeps on aggressively expanding her capabilities.
Can technology make up for a smaller military size so that the US can stay significantly ahead of China? Some Israeli senior cabinet member, obviously with the PM’s blessing said that the US is showing a weak posture to the world and many people are questioning the value of US commitments overseas.
Pres. Obama is supposed to come to our shores soon and we are shortly supposed to have some agreement about co-sharing our military bases with her. I am not sure exactly what it means. Co-sharing the bases is rather impractical to begin with and it would be very hard for our AFP to retain control of our military bases when used by two sovereign nations and one is much more competent and better equipped than the other.
Will the US flag fly under the Philippine flag or will the flags fly together? Will the situation be like in corporations, there will be two co-equal heads? It looks like a situation looking for trouble. Of course, others might argue and say what choice do we really have? We can’t play ball with China, she wants to eat us up. All the rhetoric about mutual respect and friendship is just that, rhetoric! Well, the outcome seems not too difficult to predict. The US will not risk a bloody confrontation with China.
I wish that cooler heads handled this problem with China without handing the seas to China without a whimper from the start and did not add to the heat of the day with ill considered if not bravado statements. If both sides end up boxed in a tight corner, everyone’s guess about the outcome will be just as good as any other! But I suggest this is time for some contingency planning on a rather wide level. We cannot see the problem as something only affecting the seas. We will see a few other areas regarding our domestic economy that need to truly plan ahead with wisdom and determination.
Eco Group Calls for More Action on Global Overfishing
Ministers from some of the world’s largest fishing powers, including the EU, the US, Japan, Indonesia and the Philippines recently gathered at a high-level international conference in Greece, where they reiterated commitments to reduce global fishing capacity and to ensure accurate information on fishing is readily available, including through the creation of a global record of vessels . The conference was organized in Thessaloniki by the European Commission under the auspices of the Greek presidency of the European Union. The conference declaration, which also aims at improving data collection to assess stocks and fishing capacity, was signed by several countries including the EU, the United States, Japan, Colombia and Indonesia.
However, Greenpeace warned that it is high time for governments to turn words into effective action to ensure a healthy future for fisheries and fishermen around the world. Similar commitments have been made already years ago, but have not necessarily tuned into effective action. In June 1999, the FAO adopted the International Plan of Action (IPOA) for the Management of Fishing Capacity, whose immediate objective was for “States and regional fisheries organizations, to achieve world-wide preferably by 2003, but not later than 2005, an efficient, equitable and transparent management of fishing capacity”. A number of other global instruments and conferences have emphasized the same call, but global fishing capacity has continued to expand regardless.
Excessive fishing capacity drives overfishing and illegal fishing, displaces coastalcommunities, causing environmental harm and making fishing fleets economically unviable. The EU fishing fleet, for example, is able to catch two to three times more fish than is sustainable in most fisheries.
“Across Southeast Asia, many fishing grounds are already either depleted or currently being overfished. The capacity of the fishing fleets— specifically the larger commercial vessels— are decimating the marine resources to the detriment of coastal communities,” said Mark Dia, Regional Oceans Campaigner for Greenpeace Southeast Asia.
“Governments in Southeast Asia should take the lead in this global effort to restore the health of our seas by managing the ability of their own fleets to fish, in line with the state of fish stocks. These countries must also ensure that they develop their fishing capacity in a way that is sustainable, benefit their coastal communities and is based on low-impact gears and best available practices,” added Dia.Greenpeace wants the Philippines, Thailand and Indonesia to start by scrapping the largest and most destructive industrial fishing vessels, initiating a shift towards small-scale low-impact fishing, which is more environmentally sustainable and creates jobs to supports local communities.
The Philippines has had their exemption to commercial purse seine tuna fishing access in the high seas pockets in the Pacific extended again at the last Western and CentralPacific Commission Meeting in Australia last December.
“The Bureau of Fisheries and Aquatic Resources has admitted that we have nearly finished up all the tuna in our waters and this is the reason why we now need to send the commercial fleets all the way to the Pacific high seas,” added Dia. “If we only took care of our own resources and fishing grounds, then there will be more than enough fish to feed our people. We must reverse the current trend of overfishing in the Philippines and around the world. Better management of fishing capacity is critical and long overdue.”
For more information:Mark Dia, Regional Oceans Campaigner, +63917- 8430549, mark.dia@greenpeace.org. Virginia Llorin, Media Campaiger, +63917-8228793, virginia.benosa-llorin@greenpeace.org
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