In this model, foreign investors partner with local agarwood growers, farm operators, or companies to jointly own or manage plantations and related operations. Profits are shared according to equity or contractual arrangements, while the local partner provides land access, regulatory compliance, and operational expertise.
Key Advantages
Access to Legal & Export Infrastructure
Local partners provide:
- DENR / CITES compliance
- Export licenses and clearances
- Established supply chains for GCC, EU, and Asian markets
Shared Operational Responsibility
The foreign investor contributes capital, expertise, or technology, while local partners handle:
- Plantation management
- Harvesting & inoculation
- Local logistics & workforce management
Risk Diversification
Operational, regulatory, and market risks are shared according to equity or JV terms.
Strategic International Market Entry
Simplifies access to high-value international markets while ensuring compliance with Philippine laws.
Scalable & Flexible
Allows multiple foreign investors to co-invest via structured JVs or equity stakes, without owning land directly.
Considerations & Risks
Regulatory Complexity
Foreign investors must navigate:
- Investment limits under Philippine law
- Land ownership restrictions
- Export and customs regulations
Dependence on Local Partner
Success relies heavily on the partner’s:
- Operational integrity
- Compliance track record
- Alignment with investor goals
Legal & Contractual Precision Required
Agreements must clearly define:
- Profit-sharing percentages
- Exit rights
- Governance and dispute resolution
- Operational roles and obligations
Currency & Repatriation Considerations
Returns may be subject to:
- Foreign exchange controls
- Banking and remittance regulations
Best Suited For
- Overseas investors seeking hands-off, high-value exposure
- Investors targeting premium export markets (GCC/EU)
- Those leveraging local expertise, infrastructure, and compliance
- High-net-worth individuals or institutional investors comfortable with cross-border joint ventures