PH not top choice for Japanese firms moving out of China

Good news – a lot of Japanese companies heavily invested in China are leaving the Asian giant for a more conducive place to invest in.

Bad news – the country is unlikely to be the top choice of these big companies from Japan, this according to the Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIPI) said.

“They really want to move out from China to other countries, but unfortunately, they consider first Vietnam, Indonesia, and Thailand because of supply chain, resources, and raw material production,” JCCIPI Vice-President and Executive Director Nobuo Fujii said.

(photo credit to owner)

Coronavirus has pushed these Japanese companies looking for a new manufacturing base.

The Japanese government earlier this month announced it has set aside $2.2 billion of its economic stimulus package to help its manufacturers move production out of China and into Japan or Southeast Asia.

Mr. Fujii said manpower resources is the best way to attract Japanese companies to the country.

“But lack of supply chain and raw material production is a bottleneck. And furthermore, perception of country image. We have been trying to change this (for a) long time, but we cannot say success,” he said.

The JCCIPI currently has around 600 member companies.

In the 2019 report by the Japan External Trade Organization (JETRO).

17 Japanese manufacturers in East Asian countries considered relocating their manufacturing base to the Philippines in response to US-China trade talks.

But 42.3% of companies in the report selected Vietnam as a transfer destination, followed by 20.6% that picked Thailand and 18.6% chose the Philippines.

“Meanwhile, under the impact of COVID-19, many Japanese manufacturers are facing problems on their supply chain as their key factories are located in the specific countries,” he said.

According to Mr. Ishihara , Japanese companies are willing to do business here as long as the country retains its advantages, including a talented and English-speaking work force, competitive employee compensation and ease of hiring, smooth communication with local staff, a growing local market, and tax incentives.

What can you say about this?

Share us your thoughts by simply leaving on the comment section below. For more news updates, feel free to visit our site often.

Stay updated with today's relevant news and trends by hitting the LIKE button.

Thanks for dropping by and reading this post.

Report from bworldonline

Disclaimer: Contributed articles does not reflect the view of THE PH CHRONICLES. This website cannot guarantee the legitimacy of some of the information contributed to us. You may do additional research if you find some information doubtful. No part of this article maybe reproduced without permission from this website.