Taiwan, Japan manufacturers plan to set up shop in Philippines —BOI

MANILA, Philippines — At least two Taiwanese components parts makers and three Japanese manufacturing firms are interested to set up production facilities in the Philippines, according to the Board of Investments. 

Trade Undersecretary and BOI managing head Ceferino Rodolfo said among the Taiwanese firms which have expressed strong interest to put up production facilities in the country are Wistron Infocomm Corp. and Catcher Technology Co. Ltd. which both supply components for devices such as cellphones and laptops. 

He said Wistron, which used to be one of the biggest exporters from the Subic Bay Freeport Zone, intends to resume its operations at the freeport. 

The firm, which was called Acer Information Products (Philippines) Inc. when it started in 1995 as a computer manufacturing outfit of Acer Inc., changed its name to Wistron when the latter decided to spin off operations to include a mobile operations unit. 

In 2010, Wistron closed its mobile system unit in Subic and moved production operations to Zhongshan in China, but decided to keep the design automation center.

Rodolfo said Catcher Technology, which is engaged in the manufacture of aluminum casing of smartphones and laptops, meanwhile, is looking for an area covering 60 hectares for a production facility in the country.

Aside from the Taiwanese firms, he said Japanese firms such as Tescom, which is engaged in making hair dryers, Nichiban—which makes adhesives, and Meiji Holdings Co. Ltd., which is involved in pharmaceuticals and vaccines, are also looking to open production facilities in the country.

He declined to give the amount of investments, but noted the interest to set up shop is strong. 

“The new investors from Taiwan and Japan are really attracted to the growing economy and stable wages, as well as no strikes,” he said. 

He said wage rates in the Philippines are lower compared to Japan and other countries in Southeast Asia. 

In addition, Taiwanese and Japanese firms are interested to locate in the Philippines because of the country’s free trade agreements with other countries which allow greater market access.

At present, the Philippines has free trade agreements with other members of the Association of Southeast Asian Nations (ASEAN), Japan, and the European Free Trade Association. 

It also has free trade agreements with China, India, Japan, South Korea, and Australia and New Zealand under the ASEAN. 

The Philippines is, likewise, a beneficiary of the US Generalized System of Preferences and European Union Generalized Scheme of Preferences Plus, which allow duty free entry of certain products to the US and European markets, respectively.