$500M investments seen relocating from China
FILE PHOTO
MANILA, Philippines—A number of foreign manufacturers are looking at investing about $500 million and employing up to 3,000 workers in the Philippines in line with moves to relocate operations from China, which has become a less attractive production base, according to the Philippine Exporters Confederation Inc. (PhilExport).
PhilExport quoted Foreign Buyers Association of the Philippines (Fobap) president Robert M. Young as saying that two potential investors from France would visit the country this month, on top of several companies from Canada, China and the United States that would visit in May.
“These people are financially capable, they are ready, they mean business, they are serious,” Young said, adding that these medium-sized firms produce apparel, garments, housewares, shoes and toys.
According to Young, these investors were pulling out of China because of the labor unrest in the mainland that has resulted in a shallower labor pool as well as more expensive capital costs.
The Philippines has beaten its Asean neighbors as an alternative investment site to China mainly because of the quality labor force available here, he said.
“They went to other Asean countries but they do not like it there. [Since] they used to be buying from Manila, they know that Filipinos are really good in skill, quality control and workmanship,” Young said.
Fobap plans to increasingly source goods from these soon-to-be-established factories as the group’s members wanted to prioritize procurement from local sources.
“Right now, we are running out of suppliers because in the past five years, they closed shops one by one. If they will come back, our own business will also flourish together with the Philippine economy,” Young said.
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