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200 Japanese Companies Want to Move To PH From China

EPSON

PH is a better business environment they say

A few weeks ago we reported that Epson is building their biggest factory ever in the Philippines in Lipa, Batangas citing a better business environment in the Philippines. Well, that’s not the only Japanese company that likes it in the Philippines – according to Rappler around 200 Japanese companies want to set up shop in the Pearl of the Orient from China.

So why the sudden exit? Well, China is experiencing a declining economic growth plus the cost of rising wages for workers, which is affecting the bottom line of the Japanese companies. Minimum wages in China has almost doubled in the past 5 years alone, which is dulling the competitive edge of China when it comes to attracting foreign companies.

As a result, more and more Japanese companies want to relocate to the Philippines, according to Japanese Chamber of Commerce and Industry of the Philippines Incorporated vice president Nobuo Fuji.

“As of now, there are about 1,700 Japanese companies in the Philippines. But we continue to receive inquiries from about 200 manufacturers in China, saying they want to relocate here,” he said, according to Rappler.

Aside from Epson, which is slated to increase their workforce to 20,000 strong by 2017, there are already other notable companies that have already set up shop in the PH. Bandai, the manufacturers of plastic model kits more commonly known as gunpla, have a presence in the PH, as well as Fujifilm Corporation and bike part maker Shimano Incorporated.

Epson’s President and Philippine Country Manager, Toshimitsu Tanaka said that the country’s English-speaking workforce makes it easier for companies like his to transfer technologies and to train people.

Source

John Nieves

John is a veteran technology and gadget journalist with more than 10 years of experience both in print and online. When not writing about technology, he frequently gets lost in the boonies playing soldier.

16 Comments

  1. This is good news for our country men, so tired of the lame excuse na mahirap lng kame. Walang mahirap sa masipag. I do hope this pushes through and hopefully politicians and militant union wont ruin it for us. Pinoys are very skilled workers they dont hve to go overseas if we have a good industry here.

  2. Maaring tototong mas mababa na katayuan ng buhay ng pinas kumpara sa intsek. Pero hayan binibigyan tayo ng pagkakataon ng mga hapon para umunlad. Sana nga maging hakbang ito ng pag angat ng pinas at huwag abusuhin ng maruruming politiko.

  3. Ok good news more jobs
    but with a cheaper salary
    That’s the no.1 reason why they are relocating here because of cheap labor.
    Based on experience as an engineer on a Japanese Company here on Ph.
    The average salary of factory worker in this type of industry is almost stagnant for the past decade.
    And expect that the government will still tolerate this because they benefit from these Japanese investors.

  4. The question is: Will there be enough electricity to power all the manufacturing plants that will be set up here? We were very lucky to experience no rotational brownout this summer because no power plant broke and has to shut down. However, the energy crisis continues. There is still a very tight electricity supply. This should be addressed first before the government invites foreign investors.

  5. GREAT NEWS! Ima bet this is a retaliatory move from the brutal land grabbing na nagaganap ngayon sa South China Sea

  6. Aware b kau sa increasing possibility that world war 3 might happen? China, North Korea, Russia and Iran vs. the world?..

    Japan and U.S are our alliances. So foreseeing what will gonna happen to China, Japan might want that its factories are located in their country alliances.. KC once na pumutok ang WW3 isa c japan na aatake sa China.

  7. It’s a vicious cycle..pag nag-peak ang economic Boom sa atin, matutulad din tayo sa China….hahanap naman ngayon sila ng mas mahirap na bansa para dun makapagsimula

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