The Philippine shipbuilding industry has a big potential for growth; it is regarded as among the sunrise industries that can boost the country’s exports and economic growth.
The Philippine advantage over other countries in Asia has been cited by the World Bank investment arm, the International Finance Corporation: “Philippines has macroeconomic and maritime advantages for shipbuilding that include a better logistics performance, maritime training and seafaring.”
The Philippine shipbuilding industry is the fourth largest in the world, after China, South Korea, and Japan. It has been growing steadily since 2006. Foreign companies have set up major shipbuilding facilities in economic zones such as in Cebu and Subic. Investments in the sector are expected to grow by R93 billion by 2014.
Philippine shipyards are building ships for export, most of which are of large tonnage like bulk carriers, container ships, and big passenger ferries. To attract private capital, the government offers a competitive investment incentives for growth. Port facilities are being developed through public-private partnership (PPP).
The Philippines is optimistic on the shipbuilding industry’s bright prospects seeing it as a sector that will considerably contribute to economic progress and development, given enough government interventions and private sector support. MABUHAY!