DBFTA goes to Quirino and Nueva Vizcaya

The Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) held series of seminars on Doing Business in Free Trade Areas (DBFTA) and Generalized Scheme of Preferences (GSPs) on June 15 & 16, 2016, in Quirino and Nueva Vizcaya, respectively. The DBFTA program is an initiative which aims to increase the awareness of Filipinos regarding the benefits of free trade agreements (FTAs) and GSPs.

Participants, which included exporters, would-be exporters, businessmen, government agencies, local government units, faculty members, and media men, attended the seminars to learn more about the export opportunities in the EU, US, Canada, and other FTA trading partners of the Philippines.

Discussions focused on agricultural products considering that both Quirino and Nueva Vizcaya are landlocked provinces. Both provinces have numerous opportunities of exporting agri-food products since the Philippines’ largest exports to the world comprise of fresh and processed foods, alongside electronics and parts of vessels and airplanes. At present, worldwide consumer trends are leaning towards health and wellness, uniqueness and individualism, and convenience.

MSMEs urged to follow int’l standards

The Department of Trade and Industry’s Industry Promotion Group (DTI-IPG) urged micro, small and medium enterprises (MSMEs) to follow international product standards to break into the global market – in a seminar conducted under the Negosyo, Konsyumer, at iba pa (NKATBP) event held in Waterfront Hotel, Cebu City last June 11.

Participated in by over 200 MSMEs, exporters, would-be exporters, entrepreneurs including local startups and innovators, government trade promotions and business development officers, the seminar dubbed as “Catapulting New Business for the Global Market” held various discussions on how to drive businesses into the growing global market and how government programs and initiatives can assist in finding the right market for their products and services.

The IPG, composed of the Export Marketing Bureau (EMB), Foreign Trade Service Corps (FTSC), Philippine Trade and Investment Center (PTIC), Center for International Trade Expositions and Missions (CITEM), and the Design Center of the Philippines (DCP), takes the lead in developing and implementing programs and activities that promote the Philippines and local entrepreneurs’ products and services in the domestic and international market.

2016 Q1 exports down by 8.4%

During the first three months of the year, Philippine exports reached US$13.11 billion, an 8.4-percent slide from the $14.3 billion reported during the same period last year. This is primarily due to the slowdown of economies of major export-destination countries like Germany, Japan, China and Hong Kong SAR and US.

On another note, PHL companies continue to invest abroad by acquiring companies from other countries.  Among these corporate giants are Monde Nissin Corp. which bought UK company Quorn for P38.93 billion; MNTC which operates in various ports worldwide; Universal Robina Corp. which bought Griffin Food in New Zealand; Emperador Inc. which purchased Fundador Pedro Domecq, Spain’s oldest and largest brandy maker; and Jollibee which operates restaurants in China, the Middle East and the US.

Seminars on FMCG

EMB recently held a series of seminars on Doing Business with the United States (US) for Fast-Moving Consumer Goods (FMCG) in Manila, Cebu City, and Davao City as part of its Doing Business in Free Trade Areas (DBFTA) program.

From Wikipedia:

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years.

FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are highly perishable. Other goods, such as alcohol, toiletries, pre-packaged foods, soft drinks, chocolate, candies, and cleaning products, have high turnover rates. The sales are sometimes influenced by some holidays and season.

 Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is a classic case of low margin and high volume business.

Business matching with Korean food companies

DTI-EMB, together with Philippine Trade and Investment Center-Seoul, Department of Tourism (DOT), and the ASEAN-Korea Center, recently held a business matching activity between local food entities and major companies from South Korea at the SMX Convention Center in conjunction with the Madrid Fusion Manila 2016.

The seven Korean food companies interested in sourcing Philippine food products include FF Corporation, Bar Kor, Jinsung FM, Naesung Enterprise Co. Ltd., Nature Food, ILSHINNAPU, and Korea’s biggest fruit company, CJ Cheiljedang.

Featured during the event were different Philippine food and beverage export products from around the country including sauces and condiments of Mama Sita’s, pure sap coco sugar from Cocoro, coffee from Bote Central Inc., calamansi products from nuBlends corporation, peking duck from Maharlika Agro-marine ventures corp, snack food from Universal Robina Corp., baked products from Magic Melt, confectioneries from Monde Nissin, natural sweetener from Suchero, coconut oil from Minola, coco water and coco products from VCO Philippines among others.

Through the assistance of the DTI Regional Offices, about 20 Philippine food companies coming from various regions in the country participated during the said event and a total of 120 Philippine food exporters were able to discuss possible sourcing of products and explore business opportunities through direct supply, distribution, partnership, or joint venture agreements with the Korean delegates.

As part of the business matching activity, a seminar on global competitiveness of food products in the Philippines was also held. Topics on sourcing, packaging technology and gourmet food were presented by respective speakers from South Korea.

The business matching activity generated a total of 118 business meetings from 59 exporting companies and total potential sales of USD195M.

PHL participates in CeBIT

The Philippines is further sustaining its position as a mature regional hub for information technology and business process management (IT-BPM) as the country’s major industry players recently highlighted the Philippines as a viable investment location for IT-BPM and showcased the competencies and proven track record of the Filipino workforce in delivering world-class services during the CeBIT Fair in Hannover, Germany recently.

IT-BPM is currently the fastest growing industry in the country.  In 2015, IT-BPM industry reached $22 billion in revenue, generating around 1.2 million full-time employees. For 2016, the IT-BPM industry is eyeing to surpass the revenue figures earned in 2015 and targets $25 billion in revenue and 1.3 million direct employment opportunities.

CeBIT, a German language acronym for Centrum für Büroautomation, Informationstechnologie und Telekommunikation, is a sought-after global trade fair and event to promote IT services.  The Hannover edition is one of the most prominent conventions and attracts the most number of visitors and exhibitors.  Over the years, CeBIT has become an important platform for ICT companies from different parts of the regions to explore partnerships and exchange expertise through exhibitions, global conferences, and networking events.  In 2016, the fair attracted 100,000 visitors with over 3,300 exhibitor companies from 70 countries.

Over 70 meetings / business queries were facilitated on site. The delegation generated interests in the form of outsourcing possibilities and potential inbound visits in PH, as well as collaboration work with European company leads and industry associations.

After CEBIT, the delegation proceeded to Berlin for the conduct of Business Forum, as well as to hold company meetings and networking receptions.

The forum was followed by a Networking Luncheon, hosted by Amb. Thomeczek, for the promotion of global in-house centers / shared service centers in PH.  This was attended by the testimonial speakers during the forum, executives of the German Outsourcing Association and the Association of German Banks.

PEDP regionalization

EMB and the Export Development Council (EDC) held its Mindanao and Visayas forum entitled, “Forum on Philippine Export Development Plan (PEDP) 2015-2017 Regionalization” at Microtel Hotel, Lanang, Davao City and Hotel Elizabeth, Cebu City, respectively.

The forum, funded by the European-Union (EU) Trade Related Technical Assistance (TRTA) Project 3 was participated by over 200 participants from the Mindanao and Visayas export community including other government agencies, local government units (LGUs), micro, small and medium enterprises (MSMEs), and representatives from the private sector.

The PEDP regionalization forum aims to present the recently-approved export plan to the exporting communities in the country. It further aims to equip exports producers the knowledge and information in maximizing the opportunities and interventions that the plan has to offer.

On March 16, the first leg of the PEDP Regionalization for the National Capital Region and Region 4 was held at the Ace Hotel and Suites in Pasig City. Same forum will be held for the Luzon region on April 5 at Holiday Inn, Clark, Pampanga.