Japanese investors eye Philippines as alternative to China, Vietnam

JAPANESE investors are looking at the Philippines as an alternative to China and Vietnam, the managing head of the Board of Investments said.

Trade Undersecretary Elmer Hernandez told reporters that an official of a Japanese bank relayed that “Japan is looking very seriously at Southeast Asia, specifically the Philippines and Indonesia,” as prospect investment destinations.

Hernandez last week met with Takashi Muraoka, the managing executive officer of the Bank of Tokyo-Mitsubishi UFJ Ltd. The bank sponsors the board trade promotion activities in Japan, he said.

Hernandez said Japanese investors who find doing business in China and Vietnam problematic would likely turn to the Philippines.

Japanese businessmen in Vietnam are reportedly having problems due to lack of qualified manpower as well as the fast turnover of workers, the board official said.

The rising costs of production and manpower in China are also discouraging some Japanese investors, he said.

Hernandez said the Philippines’ edge remains the quality of its workforce, with feedback from the Japanese indicating they would continue to invest in the Philippines when they see that the government is determined to address investors’ concerns.

“The Philippine government should not just recognize the issues raised by investors; more importantly, it should resolve them,” he said.

During last month’s Japan-Philippines Economic Partnership Agreement second sub-committee meeting on the improvement of the business environment, Japanese investors complained of the long-delayed refund of their tax credits.

The Japanese had a 58-percent share of foreign direct investments infused into the Philippines last year. –BEN ARNOLD O. DE VERA Reporter, Manila Times