Japan firms eye Philippines as alternative production site
BPO company expanding operations
By: Amy R. RemoPhilippine Daily Inquirer
More Japanese firms have started considering the Philippines as a possible alternative manufacturing and business destination, following the disasters that devastated Japan early this year, according to the Department of Trade and Industry.
Trade Secretary Gregory L. Domingo said the country, which is an important trade ally of Japan, could be a viable manufacturing location for Japanese firms while reconstruction is ongoing in many parts of their country.
Japan is now recovering from the March 11 earthquake, which had triggered a tsunami and a nuclear crisis that had adversely affected several production centers in that country.
These disasters, which wreaked havoc on businesses and industries in Japan, were considered as among the costliest disasters in the world, with damages estimated to reach $300 billion.
Already, Toyota Motor Philippines Corp., whose parent firm is based in Japan, said it would source more auto parts from the Philippines and was targeting to increase its local production of parts and bring up the local content of several of the car models assembled in its Sta. Rosa plant to 40 percent from the current 20-25 percent. Local assembly of motorcycles is also picking up, the DTI reported.
Japan’s reconstruction may also pave the way for Japanese investments in various products and services in the country, particularly agribusiness and non-voice business process outsourcing (BPO), said Trade Undersecretary Adrian S. Cristobal Jr.
According to the DTI, a Japanese BPO company had already committed to expand its operations in the Philippines.
The focus of the said firm—which is based in Osaka and has branches in Tokyo, Shanghai, and Ningbo China—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 yen in the first five years of operations here, the DTI said.
The DTI said the recent rise in the exports of wood products could also be traced to the growing demand for construction-related wood products, like wooden doors and jambs, for the reconstruction of earthquake-damaged areas in Japan.
Recent exports data showed that woodcraft and furniture exports rose by 65 percent to $149 million to date from $90 million in 2010.
The DTI said a number of Japanese farmers and traders have been visiting the Philippines to buy vegetables and other agricultural produce. The first half of April this year saw an increase in the interest of Japanese fishermen and farmers, whose business were affected by radiation, in Philippine products.
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Tags: Business , Business process outsourcing , Japan , Philippines
