Author Topic: Growing GDP, high-quality workforce attracting Japanese businesses (Read 695 times)

islander · « **on:** October 20, 2015, 01:03:14 PM »

Growing GDP, high-quality workforce attracting Japanese businesses

MINORU SATAKE, Nikkei staff writer
October 17, 2015 7:00 am JST

MANILA -- Japanese businesses are increasingly looking to the Philippines as an attractive production base as well as a growing market.

Japanese trading house Mitsubishi Corp. announced on Oct. 7 that it will launch a new industrial park, Cavite Technopark, a 118-hectare development in Cavite Province.

The development by Laguna Technopark, a joint venture between Mitsubishi and Philippine real estate developer Ayala Land, is expected to cost some 11 billion yen ($91.6 million).

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islander · « **Reply #1 on:** October 20, 2015, 01:03:55 PM »

This is the second time for the Japanese trading house to develop an industrial park in the country.

According to a Mitsubishi official, the island country is attractive as a development target for three reasons.

First, the nation's gross domestic product in the past three years has been growing at a remarkable pace of more than 6%. Secondly, the nation's population has reached the 100 million mark, but it continues to grow at an annual rate of 2%. The third factor is that many Filipinos can speak, read and write in English, one of the nation's official languages.

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islander · « **Reply #2 on:** October 20, 2015, 01:04:37 PM »

The nation's growing population and abundant workforce are particularly attractive to manufacturers. The minimum wage outside the capital is hovering at around 335 pesos ($7.28) a day and the annual pay increase is still low at a few percent, much lower than the 20-30% in other Asian countries such as Indonesia and Vietnam.

More and more Japanese firms are entering the country to cash in on this high potential.

Seiko Epson built a factory in the Philippines that assembles and exports printers and projectors using components imported from China and other places. The Japanese printer maker plans to ramp up the operation further. It announced last December that it will invest about 12.3 billion yen to expand the factory by more than 100% and increase the payroll from the current 12,500 to 20,000 workers in a bid to tap into the nation's accessible labor pool.

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islander · « **Reply #3 on:** October 20, 2015, 01:05:06 PM »

The government has also been encouraging foreign manufacturers to set up production bases here. Manila plans to start offering subsidies to carmakers in next year in a bid to develop the auto industry. Automotive companies such as Toyota Motor and Mitsubishi Motors will probably be eligible for the subsidy. The move is also expected to result in an increase in local contractors and subcontractors such as auto parts makers.

Japanese lenders are also expanding into the country. In September, Sumitomo Mitsui Banking opened a branch in Manila to provide loans and trade finance.

Shosuke Mori, the bank's managing director for the Asia-Pacific area, said the Philippines is very attractive for manufacturers. "The Philippines has high potential, because we expect the country's infrastructure will improve significantly down the road."

Another bit of good news is that the country is becoming safer. At one time, the Philippines had a reputation for being crime-ridden. However, expatriates in the country have rarely reported being the victim of crimes in the past few years.

asia.nikkei.com/

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Author Topic: Growing GDP, high-quality workforce attracting Japanese businesses (Read 695 times)

islander

Growing GDP, high-quality workforce attracting Japanese businesses

islander

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islander

Re: Growing GDP, high-quality workforce attracting Japanese businesses

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Re: Growing GDP, high-quality workforce attracting Japanese businesses