Doing Business in the Philippines
In recent years the Filipino economy has rapidly expanded, growing at well above its historical average of 5.2% pa over the past decade.
In recent years the Filipino economy has rapidly expanded, growing at well above its historical average of 5.2% pa over the past decade. Despite natural disasters such as 2014's Typhoon Yolanda, the World Bank expects the economy to continue growing strongly.
The Philippines is on par with the average of its neighbours when it comes to creditworthiness, and has achieved an investment grade credit rating. But it lags slightly behind its peers in terms of business climate and growth and its per capita income is low.
The Philippines is a party to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which delivers benefits for Australian businesses in the areas of tariff reduction and elimination, economic engagement and cooperation, greater certainty for service suppliers and investors and supply chain opportunities.
Doing Business in the Philippines
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Why do business in The Philippines?
The World Bank expects the economy to continue growing strongly.
In recent years the Filipino economy has rapidly expanded, growing at well above its historical average of 5.2% pa over the past decade. Despite natural disasters such as 2014's Typhoon Yolanda, the World Bank expects the economy to continue growing strongly.
The Philippines is on par with the average of its neighbours when it comes to creditworthiness, and has achieved an investment grade credit rating. But it lags slightly behind its peers in terms of business climate and growth and its per capita income is low.
The Philippines is a party to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which delivers benefits for Australian businesses in the areas of tariff reduction and elimination, economic engagement and cooperation, greater certainty for service suppliers and investors and supply chain opportunities.
Looking to develop your understanding further? Discover the Asialink Business face to face training and online courses available to you and set yourself up for success in the Asian markets.
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Business etiquette in The Philippines
A top-down, hierarchical management style means decision making can be slow.
- Personal relationships are very important, with meetings considered to be essential to establish and maintain a solid business relationship. Expect to engage in light conversation and be asked many personal questions. You should avoid any discussion of politics and religion.
- As with other Asian cultures, never publicly criticise or contradict anyone, refer to a mistake, show anger or disagree with a business contact – this is known as losing face. Discuss any concerns discreetly in private, or use an intermediary.
- In order to save face and avoid conflict, Filipinos will rarely say no. Presenting a written document outlining the tasks required on both sides may assist the process of securing a decision.
- Businesses in The Philippines tend to have a top-down, hierarchical management style. This means decision making can be slow, as information needs to be passed up the hierarchy until the chief decision maker is reached.
- Filipinos have a relaxed concept of time and may not always be punctual for meetings. Call the day before to reconfirm your meeting.
- Suits should be worn for business meetings. For more formal occasions, a dinner jacket and tie are required.
- During initial introductions, you should address business contacts using their surname and their work title, i.e. 'Director Gonzales' or 'Manager Lopez', both as a sign of respect and to demonstrate that you understand their roles. You should continue to use their titles in any correspondence.
- Filipinos usually have two names – a full name and a nickname. Their full name is used for financial and contractual documents, while their nickname is their preferred conversational name. After the initial meeting you will usually be asked to use their nickname, usually shown on their business card.
- Business cards are very important – bring a large amount with you. Use both hands when presenting or receiving cards.
- A handshake is the standard form of greeting for both men and women – you will need to shake hands with everyone present both before and after meetings.
