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Tuesday, March 28, 2006
RP, Vietnam compete for Japanese investors
After being overtaken by Thailand, Malaysia and other countries in Southeast Asia, the Philippines is now contending with Vietnam in attracting Japanese foreign direct investors.
But with regard to information technology, the Philippines or Cebu, in particular, still has an edge over Vietnam and other countries in Asia due to the Philippines’ labor force, Japan External Trade Organization (Jetro) expert Shinichiro Kato said.
According to Hiroshi Yoneyama, director of Jetro-Manila, most Japanese companies, even those already operating in the Philippines, are looking at Vietnam as the location for the expansion of their operations.
This development is largely due to the stable political climate of Vietnam, although it is a socialist country.
During a press conference at the Marco Polo Plaza Hotel yesterday, Yoneyama said Jetro-Manila’s surveys, which sought to find out in what country, except China, do Japanese companies want to expand their operations in, revealed that Japanese companies, including those with branches in the Philippines, want to put up a base in Vietnam or Thailand.
“I’m sorry to say that the Philippines is in the bottom of the list (of countries of preference),” he said.
Jetro-Manila executive director Yasutomi Ota said the country’s unstable political climate, perceived negative peace and order situation, high income and corporate taxes and poor infrastructure are some of the reasons for the Philippines’ low rating.
He cited, in particular, President Arroyo’s declaration of a state of emergency on the day of the commemoration of the Edsa Revolution. This has elicited negative perceptions from Japanese companies.
Pull out
“Most Japanese companies stopped business trips to the Philippines. Some pulled out Japanese managers in the Philippines, although they had conflicts since, we, the Japanese, who are here in the country know the real situation,” Ota said.
The government’s po-licy on no-permit no-rally has also created a negative image of the Philippines.
“In Thailand, people can rally (freely) outside the Prime Minister’s office,” he said.
Ota was referring to a recent political event in Thailand where tens of thousands of protesters marched to the office of Thai Prime Minister Thaksin Shina-watra, demanding for his resignation over allegations that he improperly enriched himself in a massive telecommunications deal.
In the Philippines, the government has been apprehending rallyists, including government officials, for organizing mass actions since February this year.
Meanwhile, Yoneyama said the Philippines should exert more effort to attract Japanese companies to branch out in the country.
He said the Philippines does not have to think about competing with China, as most Japanese companies are implementing the “China+1” policy, wherein they put up a plant in China and another in any of the countries in Asia. (JBN)
For Bisaya stories from Cebu. Click here. (March 28, 2006 issue)
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