The five industries with the greatest development potential in the Philippines today

The five industries with the greatest development potential in the Philippines

Speaking of Southeast Asia, the words that come to our minds are small countries, slow economic growth, low prices, etc. But now Southeast Asian countries have begun to slowly transform and develop rapidly. As the global economy is reshuffled, Southeast Asia has become a new opportunity in the eyes of major investors.

Now, we will set our sights on the Philippines, known as "Asia's Little America", a diverse and multi-racial country. It was once famous for its Filipino maids, and now it is the country with the greatest investment potential in Southeast Asia. First, domestic GDP has maintained an average growth rate of more than 6% for several consecutive years. So what are the industries with the greatest development potential in the Philippines right now? Let’s take a look at it together.

Not only in the Philippines, the catering industry has great development space and markets in countries around the world, but the premise is that the right category must be chosen.

In the past two years, our Chinese milk tea has become popular all over the world, and of course it has also set off quite a craze in the Philippines. It is said that the most popular milk tea shop in the Philippines can sell 10,000 cups a day, with a daily profit of up to 60,000 yuan (a cup of milk tea in the Philippines usually costs 120 pesos, equivalent to 16 yuan). In addition to milk tea shops, Chinese restaurants, Chinese supermarkets, etc. are also very popular in the Philippines. For details, you can click on this article (insert link).

With the development of the Philippine economy, the number of the middle class is rising rapidly, and people have higher and higher requirements for the quality of life. Moreover, Filipinos are influenced by Catholicism, advocate enjoyment and pursue exquisite life, so they are not stingy at all when buying household items.

The profits of the home furnishing industry in the Philippines are 2-3 times that of China. Its huge development potential has attracted many home furnishing companies from around the world. For example, IKEA, the world's most famous Swedish home furnishing brand, announced in 2018 that it would build the world's largest flagship store in the Philippines, which is expected to open next year. And Miniso, which is well-known in China, is also very popular in the Philippines, and the stores are often crowded.

The e-commerce landscape in Southeast Asia, especially the Philippines, can be said to be "eye-catching" by e-commerce merchants around the world.

It goes without saying that everyone knows the huge benefits brought by e-commerce, but now the development of e-commerce in most countries is already in a state of "red ocean competition". The current situation of Philippine e-commerce is equivalent to that of China more than ten years ago, which is a critical period for explosive development. Our e-commerce tycoon Jack Ma also attaches great importance to the Southeast Asian sector. He has spent a huge amount of money to control Lazada, the largest e-commerce platform in Southeast Asia, and has developed a new e-commerce empire centered on the Philippines.

In addition, the Philippines, as a young country with a population of over 100 million and an average age of 24, also gives the country more possibilities for the development of the e-commerce industry.

Real estate development in the Philippines is still in its early stages, but demand is rising. Manila currently has 24 million people. The population density is ten times that of Shanghai, but there are only 1 million units of commercial housing. This has led to tight housing supply and high rents in Manila. The monthly rent for a single apartment of more than 30 square meters is around 5,000 yuan. , it can go up to tens of thousands.

Advantages of Philippine real estate development:

(1) The Philippines has a large population base and a certain economic foundation;

(2) High return on investment. As a first-tier city in the world, Manila currently has an average real estate price of RMB 20,000-30,000. In the past eight years, the annual growth rate of house prices in the Philippines has been stable at 10%, and some areas have even increased by 20-30% in the past two years. In addition, from the analysis of overall factors, Manila is not inferior to Bangkok, Thailand, but you cannot buy core areas in Bangkok for less than 40,000 yuan, and you can buy very high-quality projects in Manila at the same price;

(3) The rental return rate is high, eight times that in China. Projects with better locations and higher quality can pay back their investment in 10-12 years.

The Philippines is a big tourist country. According to statistics from the Philippine Department of Tourism, the number of foreign tourists received by the Philippines in 2019 reached 8.26 million.

Among them, there were 1.74 million tourists from mainland China, a year-on-year increase of 38.58%.

The Philippines has a pleasant climate and is very suitable for travel all year round. Therefore, the demand and occupancy rate of B&Bs are very high, and they are basically full. If you rent or buy more than 10 houses in a project and leave it to a specialist or run it yourself, you can get your money back in 7-8 years.

The above are the five industries with the most development potential in the Philippines. If you have any other questions, please leave a message or send us a private message!