By Mia A. Aznar
Friday, July 22, 2011
Trade Secretary Gregory Domingo pointed out that locators in the country’s economic zones have very high satisfaction ratings when it comes to doing business and that the revenues coming from economic zones have a high impact on the country’s economy.THE exclusion of economic zones in competitiveness surveys may have affected the Philippines’ global ratings, the Department of Trade and Industry contends.
Domingo, who spoke at the Cebu Chamber of Commerce and Industry general membership meeting Thursday, said electronics and business process outsourcing sectors operating in these economic zones are responsible for the fastest and largest growth and have a combined 1.2 million direct workers.
He explained there are two kinds of business environments in the country—the first under the Philippine Economic Zone Authority (Peza) and those that depend on local government units.
While businesses under Peza areas experience ease in doing business, Domingo admitted that not all LGUs make it easy for entrepreneurs to do business.
Permits system
Domingo acknowledged that attracting big businesses to relocate to the Philippines is difficult with poor ratings in competitiveness surveys, which was why they are working with surveying bodies to include Peza locators in conducting these surveys.
Still, he assured they have initiated several programs to make LGUs provide a business-friendly environment, by setting standards on cost and time in the business permit licensing system. So far, 120 LGUs have enrolled in the program. The administration is targeting 400 LGUs for this program.
An issue they identified when it came to releasing permits was the delay in getting fire licenses. Domingo assured they are trying to address this.
Aside from convincing research institutions to include Peza locators in their studies, Domingo added that they managed to convince them to survey companies in Quezon City rather than in Manila because this is where the most number of establishments are registered.
Since economic zones enjoy easier business processes, Domingo also said they are working with the Peza board to create domestic eco-zones.
Domingo said some guidelines are still being finalized by the Peza board and that they are studying how it would benefit LGUs so they will agree to waive their rights to collect taxes and impose permits in exchange for benefits.
He assured there has been a high interest in the domestic eco-zones, with many inquiries about how they can qualify.
Domingo identified the Philippines’ labor force, now placed at 35.92 million, as one of its most competitive advantages. He also cited a 92.3 percent literacy rate, plus the projection that 76 percent of the labor force is fluent in English.
The country also produces 469,000 college graduates annually, with 92,000 in engineering and information technology, 106,000 in business and 128,000 in medical and allied services.
Domingo also said the Philippines has a strategic location, and can boast that it is at least four hours away from key Asian cities except India, which makes it suited to become a logistics hub.
Published in the Sun.Star Cebu newspaper on July 23, 2011.
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