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.
0 Comments