DTI eyes funding for franchisers’ participation in int’l events

MANILA, Philippines - The Department of Trade and Industry (DTI) is considering funding  local franchises’ participation in international shows as it sees the  upcoming Association of Southeast Asian Nations (ASEAN) integration as  a good opportunity for Filipino businesses to expand overseas.   

Speaking at the Franchise Asia Philippines 2014 International  Conference held yesterday, Trade Secretary Gregory Domingo said the  department wants to help local franchise firms expand in an  increasingly global and competitive market.   

“In particular, we at the DTI will seriously look at how we can  support participation of Philippine companies in international  franchise shows,” he said. 

According to Domingo, DTI is studying whether its export marketing arm — the  Center for International Trade Expositions and Missions (CITEM) — could  partly subsidize the fees needed by local franchises to join shows  overseas.   

“I think CITEM is the best way to support it because of the  franchises’ big value for us to the extent that Philippine companies  franchise abroad and to the extent they use some of the materials  coming from the Philippines,” he said.  

The DTI may start providing the support by next year as  it still needs more time to study how such could be implemented.   

The DTI intends to provide support to local franchises as it sees the ASEAN integration as a good opportunity for businesses to expand  beyond the domestic market.   

“Markets are opening up especially around the ASEAN region but they  are opening up as well all over the world. Take advantage of those  opportunities,” Domingo said.   

For his part, Philippine Franchise Association (PFA) chairman  emeritus Samie Lim, notes the ASEAN integration is the perfect time for  Philippine franchises to go overseas.   

The AEC to be established by the end of 2015, would allow free flow of  goods, services, skilled labor, investments and capital within the  region.   

The region is seen to offer opportunities for businesses given its  close to 600 million population.   

“We all know that the best defense is a good offense. If foreign  franchises can open in the Philippines, homegrown franchises should  also aggressively seek opportunities to open overseas,” Lim said.   

While the PFA is grateful for the support being provided by government,  Lim said the group would want to see more being done in the area of  international expansion.   

“We hope to showcase Philippine franchise pavilions in our  participation in future international franchise shows to accurately  portray the Philippines as home to world-class franchise brands,” he  said.   

The PFA is currently promoting Philippine franchises that are ready to  go international by looking for partners through franchise shows held  overseas.   

By expanding overseas, Lim said franchises do not only earn foreign  exchange in terms of franchise fee and continuous monthly royalty fee,  but are also able to sell thousands of products sourced from local  farms and small and medium manufacturers.   

“With this in mind, franchising can help our manufacturers become  global,” he added.