Phl ranks 5th in Asean for US firms’ expansion

US companies remain optimistic about business prospects in the Association of Southeast Asian Nations (ASEAN), with the Philippines their fifth most preferred destination for business expansion in the region this year.

The annual ASEAN Business Outlook Survey released by the US Chamber of Commerce and the American Chamber of Commerce in Singapore showed 27 percent of senior executives representing US companies in all 10 ASEAN countries cited the country as a priority market for future business expansion.

Respondents across the region saw Vietnam (40 per- cent), Indonesia (38 percent), Myanmar ( 34 percent), and Thailand (30 percent) the priority markets for expansion.

Philippines and Malaysia each got 27 percent of the US executives’ vote.

Compared with last year’s outcome, the Philippines saw one of the biggest gains in business expansion interest from 20 percent to 27 percent.

The greatest improvement for expansion came from Vietnam (31 percent to 40 percent) while Indonesia (31 percent to 38 percent) also got a similar hike in interest as that of the Philippines.

Of the US investors surveyed that has operations in the Philippines, 19 percent are planning to expand in the country while 55 percent expect their workforce to increase this year.

The country received low satisfaction ratings in lack of corruption (11 percent), infrastructure and tax structure (13 percent each), ease of moving products through customs (15 percent), free movement of goods within the region ( 17 percent), and availability of raw materials (19 percent).

Meanwhile, the country got high satisfaction ratings in sentiment towards the US (77 percent), availability of low cost labor ( 72 percent), and availability of trained personnel (68 percent).

US investors in the country also gave very positive approval ratings to the Aquino administration, with 45 percent of the respondents saying it was very effective and 38 percent saying it was effective in boosting business confidence and promoting investment in the country.

As far as bullishness in the new administration is concerned, two percent said they were very optimistic that it can sustain reforms of the previous administration, while 43 percent said they are optimistic.