80 Japanese firms set Phl visit to explore opportunities

MANILA, Philippines - Up to 80 Japanese enterprises are visiting the country in September to explore trade and investment opportunities, the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) said.

JCCIPI president Tetsuo Tomino told reporters two Japanese delegations composed of 30 to 40 enterprises each are expected to arrive in September.

A delegation would be sent by Osaka’s Japanese business federation Kankeiren, while the other is organized by business group Keidanren which is composed of enterprises from all over Japan. 

The two delegations will be composed of representatives of companies involved in various sectors such as manufacturing, insurance, banking, energy, and construction.

Tomino said the visit is in line with the interest of Japanese enterprises to expand their presence in Southeast Asia amid rising labor costs and tensions with China. 

“Philippines’ image in Japan is becoming very good so many top management executives want to come here to see how the Philippines is changing… Many people want to see how Philippines is doing now,” he said.

He noted that many Japanese enterprises are becoming interested in the Philippines because of improved economic conditions in the country.

The country’s young English-speaking workforce, good labor conditions, proximity to Japan and hospitality are also among the reasons why the Philippines is becoming an attractive location to do business for Japanese enterprises.

Tomino said that while there are good reasons for investing in the country, Japanese businesses also have concerns such as unstable government policies and lack of basic industries such as steel and chemical manufacturing.

“There is no fundamental industry here. No big steel mills. All steel sheets we must import. All chemical goods we must import,” he said.

Data from the Philippine Statistics Authority showed that Japan was the third biggest source of approved foreign investments by the Philippines’ seven investment promotion agencies (IPAs) last year amounting to $44.784 billion.

In terms of exports, Japan was the top destination of Philippine merchandise goods last year, accounting for a 21.16-percent share valued at $11.423 billion.

As for imports, Japan was the Philippines’ third biggest source with an 8.46-percent share amounting to $5.220 billion in 2013.