Recently, we’ve received a surge of inquiries about setting up factories in the Philippines—especially from friends in export manufacturing. Questions on site selection, customs efficiency, and tax incentives are top of mind.
So, our team decided to go directly to the headquarters of the Philippine Economic Zone Authority (PEZA) for a face-to-face visit. The goal: clarify policies that often seem vague, and get a solid understanding of how the landing process really works.
1. Why Visit PEZA?
Most investors have at least heard of PEZA—the government agency that manages economic zones, especially export processing zones. For years, PEZA has been the go-to option for manufacturing enterprises expanding abroad, particularly those targeting U.S. and European markets.
Yet many companies still find it difficult to navigate PEZA’s processes in practice. That’s exactly why we went: to bring real-world questions, and get real answers.
2. Why Work with OCIC as Your Partner?
Many friends have also asked us about our relationship with PEZA, and why we consistently recommend it as a priority route for factory investments in the Philippines.
Our history with PEZA goes back to 2018, when we recognized its foreign-investor-friendly policies and streamlined procedures. Since then, we’ve been helping Chinese enterprises register and establish operations in PEZA zones. Over the years, we’ve walked alongside businesses through every step—from initial consultation to actual production.
This has given us a clear view of the pain points and challenges companies face at each stage of setting up, and allowed us to design tailored solutions for every client. By bringing these real issues into direct dialogue with PEZA, we aimed to get practical, on-the-ground updates to share with you.
3. What’s New at PEZA?
During our visit, the PEZA Director-General shared some important updates. In light of recent tariff changes, not only Chinese companies but also manufacturers from Japan, Korea, and elsewhere are accelerating investments in PEZA zones. In the first quarter alone, Chinese enterprises invested PHP 4 billion through PEZA.
To meet this demand, PEZA is actively improving across several fronts:
Faster registration: Company registration can now be completed in as little as one month.
Export-oriented incentives remain strong: Electronics, auto parts, and light industries receive explicit policy support.
Clear tax perks: Duty- and VAT-free imports for equipment and raw materials; tax holiday of 4–7 years, followed by up to 10 years of low tax rates.
Upgraded infrastructure: Logistics, customs, and utilities are being enhanced. Unified customs declaration and simplified invoicing further streamline operations.
Still, not every business is a good fit for PEZA. From our discussions, PEZA is most suitable for enterprises that:
Primarily export to the U.S. or Europe, where customs efficiency and tax regimes matter most;
Can manage parts of their supply chain independently and plan for long-term presence in Southeast Asia.
On the other hand, if your focus is mainly the domestic Philippine market, or if you rely heavily on a mature local supply chain, PEZA may not be the best option.
The Philippines is not the only destination for overseas expansion, and we never advise blindly following trends. But from what we observed on-site, the country has indeed entered a stage worth serious consideration. Amid rising global supply chain uncertainties, the Philippines’ stable policy environment and tax advantages are becoming more attractive.
In the end, whether policies can be realized depends on whether the execution on the ground keeps up.
👉 If you’re considering setting up a factory in the Philippines, feel free to leave a comment or message us. We’ll provide you with practical, down-to-earth insights and tailored advice based on your real needs.
services1 