Manufacturing sector has grown significantly during the reconstruction of the Philippine economy after the Second World War. The control of imported goods, the government has promoted the development of light industries producing consumer goods for the domestic market. In the 70s, the government has established four special economic zones in order to increase production of export goods. The industries in the export processing zones is to encourage the production of traditional export items. These SEZs have attracted foreign investment in the Philippines partly due to the tax exemption policy for businesses with foreign investment. Building successful Special Economic Zone has set the stage for the establishment of industrial zones larger scale. For example, the naval base of Subic Bay former US has now become a commercial-industrial zone giant in Manila. An industry-trade areas with large modern infrastructure and tax exemptions have attracted manufacturing industries exports and foreign investment.
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