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.