1. EU-ASEAN BUSINESS NETWORKS Your Gateway to South-East Asia European Association for Business and Commerce in Thailand

2. GATEWAY TO ASEAN 1999 1998 1997 1996 1995 1967 197719841993200320072008 2009 2015 ASEAN formed Indonesia Malaysia Philippines Singapore Thailand Free flow of  Goods  Services  Investment  Skilled labour Freer flow of capital ASEAN Economic Community (AEC) ASEAN Charter PTA Myanmar and Laos joined AFTA Vietnam joined AFAS Brunei Darussalam joined AIA Bali Concord II Cebu Declaration Cambodia joined The Association of Southeast Asian Nations (ASEAN)

3. GATEWAY TO ASEAN ASEAN Population: 625 million (9% of the world's population); Median age: 28 years EU Population: 500 million (7.3% of the world’s population); Median age: 40 years in EU ASEAN GDP: USD 3.3 trillion; GDP Growth (2013): 5.2% EU GDP: USD 16.6 trillion; GDP Growth (2013): 0.1% Foreign Direct Investment (FDI): US$115 billion The EU is the biggest provider of Foreign Direct Investment into ASEAN. EU FDI is 22% of the total in 2013 ASEAN Economic Community (AEC): moving towards a single market 4 Pillars: Single Market and Production Base, Competitive Economic Region, Equitable Economic Development, Integration into the Global Economy Free Trade Agreements in place: China (ACFTA), Japan (AJCEP), Korea (AKFTA), India (AITIG), Australia-NZ (AANZFTA), and EU has concluded a FTA with Singapore and is negotiating FTAs with several other ASEAN countries (Vietnam, Thailand, Malaysia, Indonesia) ASEAN key facts

4. GATEWAY TO ASEAN Year of entry into ASEAN Population Million GDP $Billion GDP per capita % of US level Real growth of GDP, 2003 – 13 % Brunei19840.417781.1 Cambodia199915.115.527.8 Indonesia1967249.9868.375.8 Laos19976.810.937.8 Malaysia196729.7312.4205 Myanmar199762.85928.6 Philippines196798.427255.4 Singapore19675.4295.71036.3 Thailand196767387.2113.8 Vietnam199591.7171.246.4 ASEAN key facts Source: HIS, McKinsey Global Institute Analysis

5. GATEWAY TO ASEAN ASEAN key economics Service oriented Singapore Major Industries: Petroleum, refining, ship, repair, offshore platform, financial services, trading, consumer electronics, information technology products and services, and pharmaceuticals Malaysia Major industries: tourism, petroleum and liquefied natural gas, electronics equipment, textiles, chemicals, wood and wood products, agriculture processing, palm oil, rubber, tin mining, and logging Manufacturing oriented Thailand Major industries: tourism, healthcare, automobiles and parts, textiles and garments, electrical appliances, computers, IC, plastics, cement, jewelry, furniture, agricultural processing, fishery products, rice, rubber, tobacco, tungsten Philippines Major industries: IT services, semiconductors and electronic products, transport equipment, pharmaceuticals, garments, footwear, copper, petroleum products, coconut oil, fruits, food processing, fishing Indonesia Major Industries: tourism, oil and gas, electrical appliances, plywood, textiles and apparel, footwear, mining, cement, chemical fertilizers, food and rubber Vietnam Major industries: garments, shoes, machine building, mining, coal, steel, cement, chemical fertilizer, glass, tires, oil, mobile phones, electronics, wooden products, food processing and rice Agriculture and resource oriented Lao PDR Major industries: tourism, construction, garments, mining of copper, tin, gold, and gypsum, timber, wood products, coffee, agricultural processing, cement, rubber, and electric power Cambodia Major industries: tourism, garments, textiles, footwear, construction, wood and wood products, gem mining, cement, fishing, rice, tobacco and rubber Myanmar Major industries: oil and natural gas, garments, wood and wood products, copper, tin, tungsten, iron, cement, construction materials, jade and gems, agricultural processing, pulses, beans, fish, rice Brunei Major industries: petroleum refining, petroleum, liquefied natural gas, construction, garments

6. GATEWAY TO ASEAN EU - ASEAN trade performance

7. GATEWAY TO ASEAN EU - ASEAN Business Networks European Association for Business and Commerce in Thailand WHO & WHERE

8. EU BUSINESS NETWORKS IN THE REGION Attracting EU businesses into the region and supporting them in their market entry activities; Increasing EU Business’ leverage towards the ASEAN Governments. The projects Increase and improve export and investment of EU businesses to the ASEAN regional market. Objectives European businesses in Europe, in particular SMEs, with an interest in ASEAN markets. Existing European companies in ASEAN which need to increase their presence and visibility. Target group WHAT Joint expertise, knowledge and experience of well-established European business support organizations with an extensive network in ASEAN and the EU. Expertise

9. ASEAN ROADSHOW VILNIUS, LITHUANIA MAY 12, 2015 PHILIPPINES – THE RISING TIGER OF ASIA

10. Philippines - Country facts

11. Economic overview GDP growth 2014 – 6.1%. Government target 6-7% in 2015-2016. GDP is heavily dependent on the service sector –Service sector 57.1%, industry 37.1%, agriculture 11.8% of GPD in 2012 Consumption-driven economy - 69.4% of GDP is formed by private consumption –Fueled by overseas remittances amounting to $24.4 billion and the Business Process Management industry $18.4 billion (2014) –Other growth sectors are manufacturing and construction (7.5% growth in 2014), and real estate services and financial intermediation -> 6% growth rate in the overall services sector in 2014 Total exports $61.8 billion, imports $64.5 billion

12. Investment climate Investment grade ratings (Fitch, S&P, Moody’s, Japan, Korea) FDI $6.2 billion in 2014, six times higher than in 2010 Government incentives –Board of Investment - Investment Priority Plan –Philippine Economic Zone Authority (PEZA) for export-oriented activities Foreign ownership –Foreigners can invest up to 100% equity in corporations, partnerships and other entities in the Philippines, except in areas included in the Foreign Investments Negative List (FINL)

13. Lithuania-Philippines Bilateral Trade

14. Areas of opportunity Energy/Renewables & Environmental technologies ICT & IT/BPM Food/Agriculture Infrastructure & Transport Maritime Tourism Healthcare/Medical & Pharmaceuticals Consumer Goods/Retail Financial Services Manufacturing Mining Automotive

15. Areas of opportunity Information Technology and Business Process Management –Philippines is world no. 1 in voice services, no. 2 in non-voice services –Metro Manila region world no. 2 outsourcing/offshoring destination after Bangalore –One of the fastest growing industries in the Philippines, CAGR 26% (2006-2013) Environment / Renewable Energy –National Renewable Energy Program aims to triple the yearly production capacity of renewable energy by 2030, currently 5030 MW. Program relies heavily on private sector. –Solid waste management systems being developed according to the implemented act RA 9003. Aim to reach recycling ratio of 25 percent. –Lots of untapped potential in the treatment of hazardous and medical waste.

16. Areas of opportunity Infrastructure –Public infrastructure budget increased by 17,7% for 2014 (US$7,04bn). –Construction industry the fastest growing in Asia on medium-term after Myanmar. Value US$21bn (2014), year-on-year growth rate 47% –Public-Private-Partnership projects Healthcare & Pharmaceuticals –Department of Health operates with the biggest budget among government departments. National health insurance act was signed in July 2013 to insure every Filipino, currently covers ~83% of the population –The revenue of pharmaceuticals industry is expected to double to US$8bn by 2020

17. Doing business in the Philippines Strengths –Strong macroeconomic fundamentals –Educated, young, and English-speaking labor force –Improving governance –Renaissance of manufacturing –Overseas remittances –Strategic geographic location: launching pad for AEC

18. Doing business in the Philippines Strengths –Strong macroeconomic fundamentals –Educated, young, and English-speaking labor force –Improving governance –Renaissance of manufacturing –Overseas remittances –Strategic geographic location: launching pad for AEC Challenges –Corruption –Red tape and Bureaucracy –High rate of poverty –Inefficient infrastructures –Low rates of investments to GDP –Low Foreign Direct Investments

19. EU-Philippines Business Network Partnership of eight chambers of commerce operating in Manila

20. EPBN Services Advocacy and market access –14 industry-led sector committees & ad hoc support Business support –Market studies, business matching, new market entry support, business development Business missions –Ministerial & private sector business delegations Government relations –Embassies and Philippine government agencies

21. Questions & Answers Contact information: Joona Selin EU Outreach & Business Support Manager joona.selin@epbn.ph