Philippines a preferred site for Japanese manufacturers, trade chief says

MANILA, Philippines — Trade and Industry (DTI) Secretary Ramon Lopez seeks stronger ties between the Philippines and Japan to take advantage of the latter’s interest in manufacturing investments.

“As we navigate a fast-changing world that forecasts an unstable future for many businesses, we invite our Japanese partners to work with us in facing the challenges of the “new normal” head on,” Lopez said at the Nikkei Philippines Japan Business Investment Virtual Forum.

“However, instead of just adjusting to this “new normal,” let us instead create a “better normal,” he said.

Japan remains one of the country’s biggest trading partners and investors  with the country being the Philippines’ second major trading partner, second biggest export market and import supplier.

In terms of investment, Japan was the Philippines’ fourth largest source of approved investments in 2019.

“We have reviewed the list of Japanese investments in the pipeline and we are encouraged by the strong interest in the areas of manufacturing, such as wiring harness, electronics, medical devices, renewable energy, and even in retailing and infrastructure development,” Lopez said.

The trade chief cited the country’s young, educated and tech-savvy labor force as among the attractive factors it has to offer Japan.

“This resource, I believe, is critical in responding to the challenges and opportunities of the digital and interconnected new economy,” Lopez said.

In terms of manufacturing, Lopez emphasized that the increase of manufacturing cost in the Philippines is more stable compared to neighboring ASEAN countries such as Vietnam, Thailand and Malaysia.