According to South China Morning Post, six Japanese and Taiwanese companies turned down China and preferred Philippines for their next factory locations.
“Japan’s biggest printer maker and electronics giant Epson has no plan to expand its production plant in China due to increasing labor cost and deteriorating quality”, Epson Philippines country manager Toshimitsu Tanaka told reporter. Epson is currently building its biggest manufacturing facility in its current site in Batangas. The completed factory will be Epson’s biggest ever with 10 hectares of total floor area. The facility will likely to operate next year according to Tanaka.
Based on the statement released by Nobuo Fuiji, head of the Japanese Chamber of Commerce and Industry of the Philippines Inc., since last year there are some Japanese firms started moving their operation in the Philippines. They believe that Philippines is a growing country and it is competitive enough to cater big investments from them, according to PhilStar.
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| ENTRY TO PH. An additional 200 Japanese firms want to make the most of the Philippines' inclusion to EU's GSP+. File photo by Romeo Gacad / Agence France-Presse |
Japan announced last week that it is seeking permission from the Philippine government to use the country’s military bases to support US military pivot forces. The details are not yet clear but a possible agreement between the concerned parties can be done sooner or later according to a PH military spokesperson.
Japanese bicycle maker Shimano has just opened a P1.2B facility in Batangas, and dozens more factories are likely to follow according to the Japanese Embassy.
Mitsubishi Power Industries is another giant who is scheduled to move to Philippines according to latest news.
Japanese watchmaker Citizen also shut down its China factories and the fate has yet to be decided whether it will move to the Philippines or Vietnam.
Another 300 Chinese workers lost their job after electronic giant Panasonic closed one of its Chinese factories.
Both the Philippine business sector and the government is expecting a stronger democratic and economic ties with Japan amid growing Spratly tensions. Both countries, including Vietnam share the same views against China’s illegal land-grabbing activities in South China Sea.