Moving from China to the Philippines for investments
MANILA, Philippines – A lot of foreigner manufacturing firms that are operating in China and other Southeast Asian countries are planning to relocate their businesses in the Philippine saying that there is high quality labor here, said the Foreign Buyers Association of the Philippines (FOBAP).
In a statement taken from the Philippine Exporters Confederation Inc., FOBAP president Robert Young said that two investors from France are coming to Manila by the end of this month while several Canadian, Chinese and American companies will also be coming to the Philippines sometime in the middle of May to look for investment opportunities.
These mid-sized manufacturing firms are into the garments, apparel, shoes, toys and housewares industries and are looking to invest around $500 million and employ a range of 1,000-3,000 labor force, said Young.
“These people are financially capable, they are ready, they mean business, they are serious… We are lucky if we get at least 10 initially from all parts of China and other ASEAN (Association of Southeast Asian Nations) countries,” he said.
Many manufacturing firms are getting out from China because of the increasing labor unrest resulting in reduced labor pool and higher capital costs.
“They went to other ASEAN countries but they do not like (it there)…They used to be buying from Manila. They know that Filipinos are really good in skill, quality control and workmanship. So this is actually our number one attraction,” Young said.
The group is looking forward to the country becoming a beneficiary of the European Union’s Generalized Scheme of Preferences Plus (EU GSP+) citing that such will make the country an attractive and cheaper source of goods.
The Department of Trade and Industry submitted the Philippines’ application to the EU GSP+, a scheme which will allow more goods to enter the bloc at zero duty, in December.
The EU GSP+ covers 6,274 products which can enter the EU at zero duty.
At present, the Philippines is a beneficiary of the regular GSP, which covers 6,209 products, with 2,442 products subject to zero duty and the rest slapped with lower tariffs.
“Philippine goods will be duty free entry to EU. Also, (with) the forthcoming incentivized/subsidized labor, this makes investments in the Philippines attractive,” Young said.
By having new investments here, Young said FOBAP members which source products for foreign buyers, will have more factories and suppliers to choose from.
“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,” he added
Source: The Philippine Star
