Japan firms eye Phl as alternative site

MANILA, Philippines – Japanese firms are looking at the Philippines as an alternative manufacturing site following the disasters that hit Japan months ago, the Department of Trade and Industry (DTI) said yesterday.

The DTI has cited the latest assessment released by a US-based financial service firm indicating that 40 percent of Japanese manufacturing companies are considering transferring or expanding their production sites outside of Japan in the aftermath of what could be the costliest disasters in the world, with damages estimated to reach $300 billion.

“Japan is an important trade ally of the Philippines and our country presents a viable manufacturing location for Japanese firms while reconstruction is ongoing,” Trade Secretary Gregory L. Domingo said.

Already, Toyota Motor Philippines Corp. said they will source more auto parts from the Philippines and target to bring up local content manufacturing to 40 percent from the current 20 to 25 percent of its several car models assembled in its Sta. Rosa Plant.

Likewise, a Japanese BPO company, based in Osaka with branches in Tokyo, Shanghai, and Ningbo China, has already agreed to expand its operations in the Philippines. Its focus is on software development, IT infrastructure, application management, and IT service desk. It is expected to employ 500 people and generate an estimated ¥10 million in the first five years of operations.

Also, the rise in exports of wood manufactures or woodcraft can be traced to the growing demand for construction related wood products, like wooden doors and jambs, due to reconstruction efforts in the earthquake-damaged areas in Japan. Recent data from the National Statisticss Office (NSO) showed that the country’s exports of woodcrafts and furniture exports rose by 65 percent, amounting to $149 million from $90 million in 2010.

To date, a number of Japanese farmers and traders have been visiting the Philippines sourcing for vegetables and other agricultural produce. Trade officials reported an increase in interest from Japanese fishermen and farmers whose businesses were affected by radiation.

As of June 2011, Japan was the country’s top export destination with purchases worth $932.24 million, higher by 41.1 percent from $660.6 million a year ago. –Ma. Elisa P. Osorio (The Philippine Star)