Comparison of Philippine regions in 2022

Compare the regions of the Philippines and choose the optimal location for your business.

Regions of the Philippines NCR Calabarzon region Central Luzon Central Visayas Davao Western Visayas Northern Mindanao
Preferred city for incorporation of the company? Manila Batangas Subic Bay Freeport Zone Cebu City Davao City Bacolod Cagayan de Oro
Business output market size? US$104.1 Bn US$40.4 Bn US$ 24.6 Bn US$18.2 Bn US$12 Bn US$ 11.2 Bn US$10.9 Bn
Market size relative to the economy? 38.1% 14.8% 9.0% 6.7% 4.4% 4.1% 4.0%
Local purchasing power (GDP per capita)? US$8,146 US$2,809 US$2,185 US$2,410 US$2,390 US$1,443 US$2,280
Total population? 12.8 Mn 14.4 Mn 11.2 Mn 6 Mn 4.8 Mn 4.4 Mn 4.6 Mn
Most popular business sector? BPO Agri-Industry Manufacturing Heavy industry & shipping Agriculture IT-BPO Automobile
Specific attractive Government incentives available? Yes Yes Yes Yes Yes Yes Yes
Hub for the headquarters of multi-national firms? Yes No No No No No No
City airport with direct flight to Europe, Asia and America? Yes No No Yes Yes No No
Total foreign investment in 2017? US$ 2.4 Bn US$1.1 Bn US$3.4 Bn US$846 Mn US$253 Mn US$504 Mn US$238 Mn
Logistical considerations
Attractive State for a manufacturing business? Yes Yes Yes Yes No No Yes
Attractive State for a e-business? Yes No No No No Yes No
Attractive State for an export-oriented service business? Yes No No No No Yes No
CBD monthly office rental per sq m? US$6 US$6 US$6 US$4 US$6 US$7 US$5
Average monthly warehouse rental per sq m? US$7 US$3 US$4 US$2 US$4 US$2 US$5
Average monthly electricity prices? (per Kwh) US$1
US$1 US$1 US$1 US$1
US$1 US$1
Proximity of sea port to the main city? 5 km 2.5 km 5 km 6 km 5 km 5 km 5 km
Proximity of airport in kilometres to the main city? 20 km 83 km 20 km 14 km 33 km 12 km 43 km
Average annual inflation rate? 1.2% 0.9% 2.2% 3.2% 3.2% 1.9% 1.4%
Corporate Banking and Finance considerations
Is the main city a financial services hub? Yes No No No Yes No No
Recommended bank for corporate banking? BPI Metrobank BPI PNB SBC CBC DBP
Quality of bank customer services? Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
Quality of online banking services? Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
Does the State have a reputable financial district? No No No No No No No
Does the State have a local Stock Exchange? No No No No No No No
Are there Private Equity Funds/VCs in the State? No No No No No No No
Employment considerations
Average monthly salary for local employees? US$158 US$166 US$158 US$152 US$141 US$152 US$140
Average skilled labour monthly salary? US$159 US$166 US$159 US$153 US$142 US$153 US$141
Average unskilled labour monthly salary? US$145 US$126 US$145 US$145 US$139 US$123 US$135
Is there a large expatriate community in the State? No No No No No No No
Mercer Survey Ranking for global cities? Not ranked Not ranked Not ranked Not ranked Not ranked Not ranked Not ranked
Literacy rate? (% of population) 98.2% 98.4% 98.2% 96.2% 95.2% 95.4% 95.4%
Accounting and tax considerations
How many tax exempt free zones available? 21 57 21 51 16 22 10
Local VAT rate? 0% 12% 0% 12% 12% 12% 12%
Corporation tax rate? 0% 30% 0% 30% 30% 30% 30%
Withholding tax on dividends to overseas shareholders? 0% 30% 0% 30% 30% 30% 30%
Minimum monthly wage? US$158 US$166 US$158 US$152 US$141 US$152 US$140
Average pension and insurance benefits (% of salary)? US$23 US$23 US$23 US$23 US$ 23 US$23 US$23
Mandatory labour unions? No No No No No No No
Other country considerations
Average unemployment rate? 5.3%
Time zone? (ahead of GMT) 8 hours
Quality of internet broadband and Wi-Fi? Average
How many global banks are based in the state? 24
How many Filipino banks with local branches? 20
International schools for children of expatriate employees? Yes Yes Yes Yes Yes Yes Yes
Golf courses near the main city of the State? Yes Yes Yes Yes Yes Yes Yes
General availability of bars and restaurants? Yes Yes Yes Yes Yes Yes Yes
Will I find European F&B products in the supermarkets? Yes Yes Yes Yes Yes Yes Yes
Is the main city of the State safe for expatriates? Moderately
Computer literacy rate? (% of population) 63%
Working overtime is common? Yes
Payroll tax rates? 1.19%
Stamp duty rate on asset transfers? US$0.1 per US$4
Real estate tax rate?? (per Kwh) 3%
Monthly state tax filing required? Yes
Business grants offered by the state government? Yes
Specific tax incentives available in this state? Yes
Average customs duty of export products? 0%
Average customs duty for imported products? 10.5%
Minimum notice to dismiss employees? 1 month
Minimum redundancy indemnity? 1 month

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