Fashion giant Shein urged to expand in Philippines

MANILA, Philippines — The Department of Trade and Industry (DTI) is encouraging online fashion retailer Shein to consider expanding its operations in the Philippines by looking at manufacturing opportunities.

Trade Secretary Cristina Roque met with Shein executives on the sidelines of the World Economic Forum 2025 in Davos, Switzerland to discuss opportunities to expand the company’s operations in the Philippines.

During the meeting, Roque encouraged Shein officials to consider manufacturing opportunities in the Philippines, and not just retail.

She said the country through the CREATE MORE Act, offers attractive incentives to firms looking to invest in strategic projects.

Signed into law in November last year, the CREATE MORE Act, which builds on the CREATE Act, enhances the incentives regime and clarifies value-added tax rules to make the country more globally competitive.

Under the CREATE MORE, registered business enterprises (RBEs) can choose between the special corporate income tax (SCIT) of five percent and the enhanced deductions regime (EDR) right from the start of their commercial operations.

Under the CREATE Act, RBEs enjoy income tax holidays for four to seven years, followed by the five percent SCIT.

CREATE MORE also extended the periods of availment of incentives up to 17 years for those granted by investment promotion agencies, and up to 27 years for those granted by the Fiscal Incentives Review Board.

RBEs that opt for EDR will benefit from a reduced corporate income tax rate of 20 percent from 25 percent.

The law also increases the additional deduction on power expenses to 100 percent from 50 percent, a move that reduces costs for the manufacturing sector.

Roque emphasized that by opening a manufacturing facility in the Philippines, Shein would be creating jobs for Filipinos.

She also expressed optimism in deepening partnerships with Shein to provide more opportunities for the Filipino workforce.

Headquartered in Singapore, Shein serves customers in over 150 countries from key centers including the US, Brazil, Ireland and Southern China.

The online fashion retailer uses an on-demand model to address customer preferences and minimize overproduction. This involves testing new products by launching them in small initial batches, evaluating customer feedback in real time and restocking items that are in demand.