Trails only China in Asia: Philippines leads Japanese list of investment destinations
(The Philippine Star) - February 8, 2016 - 10:00am

MANILA, Philippines - The Philippines has overtaken Thailand and Vietnam as the investment destination of choice in Asia among Japanese companies diversifying beyond China, a ranking official of the Japan External Trade Organization (Jetro) told The STAR.

In an interview during his recent visit to the country, Jetro executive vice president Tatsuhiro Shindo said the Philippines has moved up on the Japanese investors’ list of their  most favored destinations in Asia.

The country is now officially the “plus one” of Japan as it embarks on a China Plus One Strategy, he said.

“Yes, (the Philippines) is on top of our list. It used to be Thailand and Vietnam. But most recently it has become the Philippines,” Shindo said.

“Japan’s outlook to the Philippines is very positive and very favorable because the Philippines is showing such a steady growth. It is so attractive, especially compared with the other ASEAN (Association of Southeast Asian Nations)-member countries recently,” he added.

With China’s recent economic slowdown, Shindo said Japan is applying the China Plus One Strategy to the Philippines given the country’s sustained economic growth.

The China Plus One Strategy is aimed at spreading Japan’s investments outside the world’s second largest economy.

“Japanese companies used to rush to China, but China’s economy was kind of sluggish as of late and Japan investors start to think about diversifying their investments to other countries. A couple of years ago, China Plus One means China plus Thailand or China plus Vietnam, but recently, we are pushing more for China Plus One means Philippines,” Shindo said.

Foreign chambers in the Philippines have already dubbed the country as the next big investment hub in Asia as investors exit China due to rising costs, increased regulation, and an economic slowdown.

Shindo headed last week an investment mission from Japan which included small and medium-sized manufacturing enterprises seeking investment opportunities in the country.

Shindo said the Japanese government and companies only have praises for the Philippine Economic Zone Authority (PEZA).

“We have no concerns (in doing business in the Philippines), especially with PEZA. This is such a great institution. It gives us such a strong protection to Japanese investors and good incentives. Since PEZA offers very great incentives for Japanese companies, no need to make investment outside PEZA or anywhere else,” he said.

Accumulated investment from Japan to the Philippines to date has reached P460 billion, higher than the roughly P300 billion from the United States, Shindo said.

Philstar
Facebook
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with
Read and share the latest news
whenever and wherever you are.
Top Stories
Features the most relevant stories,
exclusive content, analyses and special reports.
As It Happens
Get bite-sized highlights and up-to-date
information as the news breaks.
Latest
View the most recent
stories of the day.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
How to follow As It Happens stories
STEP 1
Click the story in the As it Happens section.
How to follow As It Happens stories
STEP 2
Click "Follow Story" for updates on the news.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Author
STEP 1
Click on the author's name in the article.
How to follow Author
STEP 2
Once you click on the author's name, you will be
brought to the Authors page. Click "Follow Author"
to stay updated on the author's works
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Tags
STEP 1
Click on a tag in the article.
How to follow Tags
STEP 2
When you click on a tag, it will take you to the
dedicated tag page where you'll see the article
viewed, along with other stories with that tag.

Click the "follow tag" button to stay updated on
the topic.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.