How do industrial parks attract international partnerships?
- They offer tax incentives to international companies that choose to set up a business in their location
- They provide locators with a complete set of amenities
- They have a well-trained and skilled labor force
- They promote sustainable business practices
Industrial parks play a pivotal role in fostering international partnerships and driving economic growth on a global scale. These designated zones, purpose-built to accommodate a diverse range of industries, have become magnets for international businesses seeking strategic collaborations and expansion opportunities.
However, how do industrial parks attract international partnerships? The allure of industrial parks lies in their ability to offer a conducive ecosystem for international partnerships to flourish. From state-of-the-art infrastructure and advanced logistical capabilities to a skilled workforce and supportive regulatory frameworks, industrial parks provide a compelling environment that attracts foreign investors.
In this article, we will explore the key factors that make industrial parks attractive to international partnerships and delve into the strategies employed to foster such collaborations.
They Offer Tax Incentives to International Companies that Choose to Set Up a Business in their Location
Industrial parks strategically leverage tax incentives to attract international companies looking to establish their presence in a particular location. This is particularly true for SPPI’s Hermosa Ecozone Industrial Park which is established in the middle of the Subic Bay Freeport one and Clark Special Economic Zone.
Governments and local authorities recognize the significant economic benefits that international partnerships can bring, and they use tax incentives as a powerful tool to incentivize foreign investment. These incentives often include tax breaks, exemptions, and reductions on corporate income tax, property tax, import and export duties, and value-added tax. All of this was made possible when the CREATE Act was pushed into law in 2021.
By offering favorable tax schemes, industrial parks create a competitive advantage that appeals to international companies. These incentives can significantly reduce operating costs and improve the overall financial viability of setting up a business within the park. They allow international companies to allocate resources more efficiently, invest in research and development, and enhance their competitive position in the global market.
Moreover, tax incentives provide long-term benefits to both international companies and the host country. They attract high-quality investments, stimulate job creation, transfer technology and knowledge, and contribute to the overall economic growth and development of the region.
They Provide Locators with a Complete Set of Amenities
Industrial parks go above and beyond in providing locators with a comprehensive set of amenities and facilities, which serves as a major draw for international partnerships. These parks understand the importance of offering a conducive environment for businesses to thrive and succeed.
One of the key amenities provided by industrial parks is state-of-the-art infrastructure. They invest in robust power supply systems, reliable water sources, efficient telecommunication networks, and well-developed road networks. These infrastructure facilities ensure smooth operations and uninterrupted connectivity for businesses, enabling them to operate at optimal levels.
The industrial parks of SPPI encompass all of these essential features and more. In addition to top-notch facilities, we take pride in our dedicated on-site team available round-the-clock. Their expertise spans various areas, including telecommunications, IT, and security, ensuring that our locators receive comprehensive assistance whenever needed.
Our team of professionals is committed to providing prompt and reliable support to address any concerns or technical issues that may arise. Whether it’s optimizing communication systems, resolving IT-related challenges, or ensuring the safety and security of our locators’ operations, our on-site team is equipped with the knowledge and resources to deliver exceptional assistance.
They Have a Well-Trained and Skilled Labor Force
Industrial parks not only offer attractive tax incentives and top-notch facilities but also benefit from a highly skilled and talented labor force. The Philippines, in particular, boasts a growing population of young Filipinos who possess the competence and knowledge required by diverse industries. With a high proficiency in English, widely used as a business communication medium, Filipino workers can easily engage with international clients, ensuring smooth and effective business operations.
The well-educated workforce in industrial parks brings a range of specialized skills and expertise to the table. Whether it’s in manufacturing, technology, engineering, or other sectors, these skilled workers contribute to productivity and innovation within the industrial park ecosystem. Their proficiency and adaptability in handling industry-specific tasks make them valuable assets for international partnerships.
They Promote Sustainable Business Practices
Industrial parks in the Philippines are at the forefront of promoting sustainable business practices and adhering to stringent environmental regulations, which play a crucial role in combating climate change.
At Science Park of the Philippines, we have developed a comprehensive sustainability assessment framework within our industrial parks. This framework provides businesses with guidelines on implementing ecological operations, spanning from responsible raw material procurement to efficient distribution of goods to end consumers.
Take, for instance, our industrial park in Malvar, Batangas. The Administration Building is powered by solar energy, exemplifying our commitment to renewable energy sources. Additionally, the industrial effluent within the park undergoes treatment at our centralized wastewater treatment plant, ensuring proper management of water resources. Furthermore, we have preserved 35% of the original landscape within the park, safeguarding the natural environment and promoting biodiversity conservation.
So, how do industrial parks attract international partnerships? They serve as magnets for international partnerships, offering a multitude of compelling reasons for foreign investors to collaborate and establish their presence. Through tax incentives, complete amenities, a skilled labor force, and a commitment to sustainability, industrial parks create an environment that fosters growth, innovation, and success.
If you are looking for some of the most outstanding industrial parks in the Philippines, then consider the Science Park of the Philippines. We can help your company develop better processes in the country.
If you have further questions, please click here to contact SPPI. We’ll be more than happy to respond and accommodate anything that we can help you out with.