Follow Philippines Investment Immigration and Philippines Economy: The shipbuilding industry is a sunrise industry for the Philippines to expand exports and promote economic growth, presenting numerous opportunities.
In recent years, benefiting from the support of the Philippine government and the technical and financial assistance of foreign enterprises, the Philippine shipbuilding industry has developed rapidly, promoting economic growth and making the Philippines the world's fourth-largest shipbuilding nation after China, Japan, and South Korea. The future prospects for the Philippine shipbuilding industry are optimistic.
It is understood that the Philippines encourages investment in the shipbuilding industry to promote economic growth. In 1989, the Philippine government opened up the import of bulk raw materials, allowing shipbuilding enterprises to obtain high-quality imported materials at preferential prices. Export-oriented shipyards located in economic development zones are exempt from corporate income tax. In 2004, the Philippine government issued a decree exempting shipbuilding enterprises from value-added tax on imported equipment, machinery, spare parts, life-saving and navigation equipment, steel plates, and other metal sheets. In addition, customs procedures for shipbuilding enterprises have been simplified, income tax on registered projects has been suspended for 4 to 6 years, and human resource planning has been established for shipbuilding enterprises. It is understood that in the Philippines, the shipbuilding industry is not a project subject to restrictions on foreign ownership, and foreign investors can own 100% of their shipyards in the Philippines.
It is understood that Tsuneishi Shipbuilding of Japan and Hanjin of South Korea are the two major shipyards in the Philippines, and the entry of these two companies has driven economic growth in the Philippines. The Tsuneishi Shipbuilding shipyard on Cebu Island in the Philippines covers an area of 1.47 million square meters and employs 13,000 people. It is expected to produce 20 bulk carriers this year, accounting for about 40% of the group's total output, making it Tsuneishi's main overseas production base. The Subic Shipyard of Hanjin Heavy Industries of South Korea is the largest shipyard in the Philippines. The shipyard provides nearly 26,000 local jobs and has an order book of 39 vessels, with a total value of approximately 2.6 billion US dollars.
The Philippine government attaches great importance to the development of the shipbuilding industry. Abundant labor resources and geographical advantages highlight the business opportunities in the Philippine shipbuilding industry. The entry of foreign shipbuilding enterprises such as Japan's Tsuneishi Shipbuilding and South Korea's Hanjin has promoted economic growth in the Philippines and also driven the rapid development of the Philippine shipbuilding industry. According to analysis, based on current development trends, the prospects for the Philippine shipbuilding industry are optimistic.
