MANY American companies are planning to venture into Cebu in search of partners and franchisees, US Ambassador to the Philippines Kristie Kenney said yesterday.
These American companies range from small-scale businesses, like Subway (sandwich bar), to large ones that are involved in high technology mining equipment, Kenney told reporters during the opening of the American Showcase exhibition at the Marco Polo Plaza Cebu.
“Cebu is the Philippines’ fastest growing economy,” she said. “Cebu’s product market is exciting. This is why some companies are looking at franchise options here through local partners,” she said.
In breakfast meeting with the local press earlier yesterday, Kenney said American companies in Cebu are “very happy” with the “infrastructure, the people and their work attitude.”
She said many US companies have growing businesses in Cebu, particularly those in the business process outsourcing and information technology sectors.
Infrastructure
She said, though, that American companies in Cebu are concerned that, as the province become more urbanized, the government should make sure that existing infrastructure systems would improve as well.
In a separate interview, Goodyear Philippines president David Morin said the strong predisposition of Filipinos to Western culture, like that of the US, has made it easy for American firms to open businesses here.
According to a statement from the US Embassy, the US accounts for about one-fourth of the Philippines’ foreign direct investment stock and is the country’s largest trading partner, accounting for about 17 percent of two-way merchandise trade.
The US is also the country’s largest export market, contributing 18.4 percent of Philippine export revenue.
While the US remains as the Philippines’ top market, Kenney also said Philippine companies, especially the food and furniture industries, have successfully found their niche in US soil.
She cited Jollibee, Red Ribbon, Goldilocks, as well as furniture and handicraft companies, as among those that continue to show strong growth potentials in the US.
In the breakfast meeting, Edu Niala of the US Commercial Service Office told news reporters garments firm Gap and sandwich bar Subway are eyeing the Cebu market as well.
Kenney was scheduled to meet with the American Chamber of Commerce (Amcham) yesterday following her visit to General Milling Co., which produces processed food from US-produced raw materials.
Important markets
The US Embassy Commercial Service Office in Manila organized the American Showcase in cooperation with Amcham and its local chambers in Davao and Cagayan de Oro cities where the event will also be held later this month.
Kenney said the American Showcase is also a venue for US firms that are new in the Philippines to find agents, distributors, resellers and end-user sales outlets.
In a news release, the US Embassy said Cebu, Cagayan de Oro and Davao “are important market for US companies outside Manila.”
“The US Embassy works with these US firms to strengthen US-Philippine business ties and showcase the best of America in the Philippines,” it said.
The two-day American Showcase in Cebu features 14 American companies, including the US Catalog Show which features about 50 US firms that are eyeing the Philippine market.
Participating exhibitors include: 3M Philippines, Amway Philippines LLC, Electrobus Consolidated Inc., Cargill Philippines, Cisco Systems Inc., Citibank Savings, Dole Asia, Federal Express Corporation, Ford Philippines, Goodyear Philippines, Kraft Philippines, McGraw-Hill Education, Mead Johnson, Microsoft Philippines, and Subway Philippines, B.V. (MMM/LAP)
