Japanese investments fuel PH manufacturing sector
August 8, 2014 at 16:20
Japanese investments fuel PH manufacturing sector
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Japanese investments poured into the country since the implementation of the Philippines-Japan Economic Partnership Agreement (PJEPA) already hit P200 billion and are mostly engaged in manufacturing activities.
Philippines and Japan trade and investment data prepared by the Department of Trade and Industry showed that for the period 2011 up to the first quarter of 2014, Japanese investments approved by the various investment promotion agencies (IPAs) posted highest in 2011 with P78.321 billion, P69.037 billion and P44.784 billion. In the first quarter of 2014, Japanese investments reached P8.327 billion.
The PJEPA, the Philippines first bilateral free trade agreement, was signed in December 2008.
Notably, majority of the investments were being poured into the manufacturing sector.
For instance, of the P8.327 billion investments in the first quarter this year P8.148 billion went into the manufacturing sector. Japanese investments in the manufacturing sector grew 67.66 percent from only P4.859 billion in the same period last year.
Of the entire P44.784-billion Japanese investments registered by the IPAs in 2013, P34.029 billion were into manufacturing operations.
Some of the recent Japanese manufacturing operations in the country include Alternergy Philippines Holdings Corp., Suzuki Phils. Inc., Honda Philippines, Inc., Canon Business Machines, and Taganito High Pressure Acid Leeching Nickel Corp.
The DTI has also identified four sectors for priority promotion to Japan. These are IT-enabled services, printed-related equipment, shipbuilding and automotive manufacturing (including electronic autoparts).
In terms of trade, Philippine exports to Japan reached $56.809 billion from 2011 to the first quarter of 2014.
Exports also registered steady increase over the years from $15.402 billion in 2011 to $16.350 billion in 2012, $17.272 billion in 2013 and $7.785 billion in the January-May period of 2014.
In 2013, Japan was Philippines top trading partner out of 218 countries with total trade or 14.50 percent of total Philippine trade to the world of $119.11 billion.
However, Philippine imports from Japan dropped by 19.25 percent from $6.47 billion in 2012 to $5.22 billion in 2013. The bulk of imports were electronics, transport, machinery, chemicals and metal manufactures.
Priority exports for promotion to Japan include construction materials/construction-related products, food products, lifestyle and homestyle, health and wellness products, IT and creative services, motor vehicle parts, wearables, minerals, coconut products, and chemicals.
Source: https://www.mb.com.ph/japanese-investments-fuel-ph-manufacturing-sector/
