MANILA, Philippines - The number of Japanese firms which sees the Philippines as a promising market for business in the next three years has risen compared to 2008, according to a survey conducted by the Japan External Trade Organization (Jetro).
The Jetro’s 2013 Survey on the International Operations of Japanese Firms showed that the Philippines placed fifth in 10 countries which saw an increase in the percentage of Japanese firms having a positive view on the covered markets for the next three years.
Out of 1,315 firms covered by the survey conducted from Nov. 30 to Dec. 27 of last year, 19.2 percent said they see the Philippines as a promising market compared to just 4.8 percent in 2008.
Topping the list was Indonesia, which saw the percentage of firms having a positive outlook on the market rise to 51.8 percent in 2013 from 12 percent in 2008.
Thailand placed second which saw the number of firms with favorable response climb to 52.9 percent from 21.8 percent in 2008.
This was followed by Vietnam which saw the percentage of companies upbeat on the market go up to 44.3 percent in 2013 from 16.3 percent in 2008 and Malaysia with 28.3 percent last year from 9.4 percent in 2008.
Singapore ranked sixth, followed by Mexico, Taiwan, Brazil and the US.
The number of Japanese firms which sees China as a promising market meanwhile, declined to 51.3 percent in 2013 from 52.4 percent in 2008.
When asked about appealing points of subject countries, market scale and growth potential was cited in all markets.
In the Philippines, reasonable labor costs and abundant workforce, as well as very little language or communication problems were also cited as advantages.
In terms of risk or issues to the business environment, the lack of infrastructure, legal system and political risk were cited in a lot of emerging markets.
Among the issues raised by Japanese firms doing business in the Philippines were inadequate infrastructure, political risks or problems in social conditions and law and order, and natural disaster risks or environmental pollution problems.