Philippines hopes to lure Japanese investment from China

I think we should jump at the chance. If China want to play hardball lets take our money and jobs out of the country. China have only got this developed due to overseas investment.

Go for it Philippines! The Philippines experienced Japan's colonization like China. Unlike China's riot-based patriotism, the Filipinos left everything in their history books, and an occasional commemoration is held every year. Now that is true patriotism. Japan must definitely try to move investment in the Philippines.

titaniumdioxide Sep. 27, 2012 - 07:24AM JST. Now that is true patriotism. Japan must definitely try to move investment in the Philippines.

At this time, relocating to Philippines does not make sense for most Japanese companies. Unlike China, even if Japanese companies move there, there is very little domestic consumer demand for products that are manufactured in Philippines. The consumers just don't have the money, and it's a small market. Just like China, if you are manufacturing a products there, you want to sell as much as you can there. Only business that might do well in Philippines is export product manufacturer. Japanese companies are hoping that China dispute will be resolved soon.

Only business that might do well in Philippines is export product manufacturer.

You said it. Japan can build their products in the philippines and export it to China or wherever. In that way manufacturing chain won't be imperiled in case another riot occurs.

Indeed, go to south east asia, they were colonized by Japan, but they don't have the hate mongering education that the chinese have. Indonesia is a big untapped market, 240 millions is not as big as China, but that is the 4th most populous country in the world, combine it with the rest of the region, it can be a potentially big market.

India hasn't made a good environment for foreign investment, but, once it has, there'll be an exodus of J companies to that country.

That would be great for both countries. India and China are longtime rivals. It's not against their interest to see more J money coming into it. For Japan, every time China makes noise like this, it could just say, "Ah, all right, fair enough! Oooo, I'm pekish! I fancy some curry!"

Actually, the Philippine tech market is growing quite rapidly, and Japanese companies could get good domestic sales in telecommunication and computers, especially with the plethora of new jobs that would be created from a grand Japanese business venture. The Philippines and Japan are already enjoying a very good relationship, as seen in Makati, Little Tokyo, and several public infrastructure projects created in cooperation between the two countries. I applaud these news, and know for sure that the Filipinos will receive the Japanese with open arms.

You know why everyone moves their factories to China? It's not just that they're cheap, it's actually because they also do a relatively good job.

It's about time. .................................China is NOT Japan's only market - - -

@sfjp330

Making a factory there, doesn't mean they will be only making products for the Phillipines

Philippine is not bad at all and one of the democratic and favorable countries. It seems that Japanese companies would willingly make more factories there soon as well as other South Asian countries.

Move out all the businesses from China to other Asian countires...Give the best lesson to the bullying China...

After the Japanese companies have left and China's economy collapses, Chinese will riot some more, blaming Japanese for moving out of the range within which they can hit them with rocks.

As the saying goes: "Ban qi shitou za ziji de jiao" --- Lifting a rock only to drop it on one's own foot.

Thomas AndersonSep. 27, 2012 - 09:07AM JST

You know why everyone moves their factories to China? It's not just that they're cheap, it's actually because they also do a relatively good job...........................................................................

That was not the case when the first companies landed in China. They had to train and educate all those illiterate to do a job. After many years they learned to do it.

India is the best place as it has market and resources they need training and commitment. But China will pump money to the communist in India to stand against the Japanese companies ( Stupid Indian communists).

Make product in other Asian countries and export it to China.. Best business.....

This is not a bad idea. Japan really shouldn't have put most of it's egg in it's China basket. should really diversify more. Southeast Asia, India and other world region are in need of financial investment. If Japan can lessen it's it's dependency on China, then China won't have much of a hold on Japan's economy.

@realmindSep. 27, 2012 - 10:33AM JST

India is the best place as it has market and resources they need training and commitment. But China will pump money to the communist in India to stand against the Japanese companies ( Stupid Indian communists).

As a market India is huge like China. India is very strong in English literacy and Software engineering, Unlike China, India is not good for manufacturing. India economy is service economy outsourcing for western multi nationals for customer service, technical support and data management. India lacks the infrastucture, efficiency, productivity and supply Chain. For manufacturing, we need stable supply of materials such as Rare Earth, Stainless steel and Copper wire etc. In China, many factories are very close each other and suppling each other needs.

@Dara DanhSep. 27, 2012 - 10:41AM JST

This is not a bad idea. Japan really shouldn't have put most of it's egg in it's China basket. should really diversify more. Southeast Asia, India and other world region are in need of financial investment. If Japan can lessen it's it's dependency on China, then China won't have much of a hold on Japan's economy.

Japan has been manufacturing in South East Asia since 1980s. For example, Honda based in Thai for car plants. Panasonic based in Malaysia for TV plants. Those plant still needs to import some materials and components from China too. For example, China control 90% of rare earth output of world. China steel output is one of the highest in the world. India lacks the effeciency and productivity for manufacturing. For example, building factory in China can be completed in a month. Not in India! It may take at least six months.

For the business, their concern is making money. Even they moved their plants to the nations you have mentioned. They still needs to source something from China for making complete products. China is still the largest factory of the world. As a consumer market, it is the biggest one in the world.

realmindSep. 27, 2012 - 10:33AM JST

India is the best place as it has market and resources they need training and commitment. But China will pump money to the communist in India to stand against the Japanese companies ( Stupid Indian communists).

Have you been there? Lovely people, but the place is a total mess. Daily power shortages and no infrastucture, the roads are a mess.

People on here who keep saying 'get out of China' make me laugh and I'm sure are making the South Korean, Germans, and US multinationals have a good laugh.

Japan needs China. Japan's pitiful economic sustinance for the last 10 years has been solely based on the Chinese markets. Go and do some basic reading, beginning with Noriko Hama's comments.

China doesn't need Japan.

Its not that easy to train engineer to work in high tech factory..

It seems that some nations are better at manufacturing than others, and that East Asians (Koreans, Japanese, Chinese, Taiwanese) are very good at it, as may be Fins and Germans. The British and Americans and perhaps Indians excel at software systems but not at manufacturing corporeal things. What are the best manufactured products from the Philippines?

One of my Philippine friends working in a financial IT, every month he is remitting money to his family in the Philippines through two national banks of the Philippines. These two Philippine national banks also cater remittance services to mainland China

More than half of the remitters in those two national banks, about 50 to 200 per week are Mainland Chinese nationals who are also remitting money to their families in China. Most of the Chinese are remitting about 100,000Yen per month.

I think, Japanese government should limit the remittance to China as preliminary sanction. 30,000Yen per month family support for one Chinese family is more than enough. So Japan should limit the remittance to 30,000Yen per month per person only.

AU_user_since_1998Sep. 27, 2012 - 11:24AM JST

I think, Japanese government should limit the remittance to China as preliminary sanction. 30,000Yen per month family support for one Chinese family is more than enough. So Japan should limit the remittance to 30,000Yen per month per person only.

Great idea, then the Yen can get even stronger. Economics is not your strong point, is it?

Might work as a "replacement" for China to some degree as a manufacturing base. But NOTHING could possibly replace China as a potential market for Japanese products. So this does not solve that. Japanese firms are feeling the impact of all the sabre-rattlng and decades of anti-Japan sentiment in China. Producing goods cheaply in the Philippines won't benefit the companies unless there is some where to sell them. And, like it or not, that is China.

'potential' market is the word. If you look at GDP per capita China is still far behind. Having 1.3 billion people doesn't help if only a small fraction can afford your products. Indeed, China's is still the industralized world's sweat shop and most of its output is still exported back to consumer markets like the US.

Now is a very good time for Japan to look to the Philippines, Vietnam and other South East Asian countries whose populations were smartly able to put the past behind them the way the Europeans did. Plus they will welcome the technology transfer.

What are the best manufactured products from the Philippines?

Many of the solid-state components manufactured by Texas Instruments, Omron, Murata are manufactured in the Philippines. 50% of the components used in notebook HDD and 25% in desktop HDD are manufactured in the Philippines.

Many financial IT companies has network security back-up in the Philippines. Voice Contact centre of the Philippines overtook India in terms of revenue and manpower-employed. Hanjin of Korea and one Australian ship building companies made the Philippines as the world's 4th largest ship-building countries in terms of tonnage.

Most of the software engineers of PC-Cillin or Trend-Micro are based in the Philippines.

However, accordingly, there is slight problem, small weakpoint in the Philippine government law. Foreigners are only allowed to own 40% of the company to be based in the Philippines. If the foreigner or foreign companies would like to own 100% company or to have more than 40% share, all the products must be exported. No product from that company must be sold locally.

If the foreigner or foreign companies would like to own 100% company or to have more than 40% share, all the products must be exported. No product from that company must be sold locally.

A law China is sure to pass in the coming months on Japanese multinationals, in reaction to the Senkaku escapades, and Japan's economy will go quicker down the plughole than the expected date of 2023.

Well done Ishihara, well done Noda.

I don't think so that Japanese Bizman will go for it. The Japanese Bizman will consider the cost of labor , electric consumption cost etc etc etc and most important that the any new host country labor union will go for STRIKE against the Japanese BIZMAN for higher more than the minimum wages. And the Japanese Bizman know the products should have a big market like China the vast end user (consumer). So, Like I say, Japan economy will likely hurt seriously more than China.

As a government, Phillipines is friendly and welcoming infront of media. It is used to be flip floping to business . Since Ramoes was a president, many multi nationals went there and faced with many hurdles of establishment. There are many red tapes and lacking the infrasturcture, efficiency and law and order.

Phillipines has one of the higest kidnapping rate. Many Japanese business men have been murdered there too. HK tourists coach had been hijaced just a few years ago. Phillipino commado stromed that coach. The consequence was many tourist died. Government is icompetent and reckless about dealing with criminals.

Singapore is the safestest heaven in SE Asia although it is very expensive. If we concern about Law and Order, Africa is safer than Phillipines.

Thank you AU_user_since_1998 I like Omron a lot. The Philippines are certainly good at English, and the service industry, so I see the point of call centres there. This could fly. But as there will be supply chain, and transport problems.

If the Philippines does get a bunch of business from Japan--I am all for it--I hope their corrupt politicians don't screw it up, and make it a more friendly environment for foreign business. They still have a lot of work to do for infrastructure, for example. Having said that, I really do hope the P.I. benefits a lot from this.

If you are Chinese people, you can understand their current mood. Do not say some insensitive remarks, you can move out all your companies to other countries, we can see the outcomes at that time,no one can run well without China. Please be objective and reasonable.

It's about time!Pull out from china already!!!

Well, I certainly don't remember the last time I heard of the Philippine government inciting its citizens to set fire to the Japanese factories they work for.

Japan's "China Risk" level is unacceptable. I completely agree, it needs to look more at taking its investment out and putting it into ASEAN countries, with which Japan has good existing ties. Thailand, Philippines, Malaysia, Myanmar should be enjoying an economic boost from redeployment of Japanese businesses that have suffered for being too invested in PRC.

Philippine Population 95million

Indonesia 240m

Thailand 75m

Vietnam 80m

Malaysia 35m

Singapore 5m

Myanmar 50m

So the whole South-East Asia can be a competitive market

Remember when Cisco, Alcatel, Ericsson, Motorola built factories in China. After 10 years, Huwaei and ZTE and other small makers built a clone of those hi-tech communications equipments. Huwaei and ZTE now overtook western suppliers in Asia and Africa and eastern europe because of very cheap prices of cloneproducts.

I'm not sure if you realize that SEAsian markets are already deeply entrenched with Korean products. That's what you get for ignoring the SEAsian market for so long.

India, Philippines, Vietnam, Thailand etcetera... invest more their. Pull out of China.

The Japanese companies are in China to help themselves, not China.

China offers a huge skillful but low-cost labor force, market with one of the biggest middle class in the world, and one of the fast growing economy in today's world with dire economic crisis everywhere.

If these Japanese companies think they can do better in Philippines then they are free to move there.

Don't kid yourself. These Japanese companies are in China foremost is to make money for themselves.

Hikozaemon Japan's "China Risk" level is unacceptable

Indeed. And for their western counterparts also. The risks to their intellectual property was already a deterrent. Look at what happened to Kawasaki, Alstom and GE with their high speed train technology. Or the companies mentioned by AU_user_since_1998. The fact that their local Chinese partners are most likely state-run and seeing what tactics the communist state use to get their way will definitely tip the balance. The French already had a taste of the Chinese mobs back in 2008.

Don't kid yourself. These Japanese companies are in China foremost is to make money for themselves

They are businesses. Their job is to make money; they are not caritative organizations. But you can't deny that the host country doesn't benefit from the technology transfer as well as the jobs. It's supposed to be a win-win situation.

The Philippines suffered a lot during the occupation of the Japanese Imperial Army up to the liberation by General McArthur. Yet, Japanese were welcome by the Philippines as early as 1950's. The Philippines welcome Japan with open arms. When the Philippines was still the 2nd-richest in Asia (1947 to 1958), it sponsored a lot of Japanese and fellow south-east Asian students for free (scholarship) university education. Even today, when the Philippines is considered to be one of the sick-man of Asia (one of the poorest), still Japanese are most welcome.

Manila was severely damaged, (some says, the most-battered city of the entire Pacific War using conventional weaponry). Some historians considered The battle for Manila was the first and fiercest urban fighting in the entire Pacific War, from the time MacArthur started his leapfrogging campaign from New Guinea in 1942, leading to the invasion of Japan in 1945. Few battles in the closing months of World War II exceeded the destruction and the brutality of the massacres and savagery of the fighting in Manila.

http://en.wikipedia.org/wiki/Battle_of_Manila_(1945) The Battle of Leyte Gulf and Battle of the Philippine Sea was the greatest NAVAL battle the world has ever seen. http://en.wikipedia.org/wiki/Battle_of_Leyte_Gulf

Phillipines is one of the most corrupted nation on the earth. Almost all of the former presidents faced corruption charge. Former president Aryoyo was facing the corruption charge.Former president Ramoes infamously said to media, Phillipines will become one of the Asian Tiger within a decade. Sadly, Phillipines is still the toothless cat. Nepotism, crony, demading ransom to local business community are daily life.

Unlike Thai and Malay and Singapore, there is no legal transparency about business environment.Investing in Phillipines is riskier than investing in Africa.There were many injustice to foreign investors. There is only one thing good about manufacturing is hard working labors and English and Spanish fluency. Investors have to think twenty times before making any commitment.

Japan is learning the hard way not too put all or too many Japanese eggs in the same Chinese basket! So Mabuhay Pilipinas!!!

Athlete No country is perfect! So a bit of corruption in the Philippines?? And NO corruption in China?????

I think everyone would agree it benefits Philippines economy but for Japan, I believe only if the time comes then we would know answer as we comments here could go on like forever.

I just make my comment simple, no income, no factories if you understand what I mean.

Everyone is going to lose if we let the emotions of mob rule dictate business terms. Japan will lose and China will lose. China needs technology transfer and business expertise in order to be competitive in the future. Both sides need to start thinking long term.

@sfjp330 Japanese companies and investors used to be in the Philippines until they wanted to gain more profft and moved it to cheaper labor and costings countries like China. Yes, Philippines need more investors and Japanese companies like before if only the present admininstration will be strict with the local chinese tycoon syndicates with inside government officials connections that blocked foreign businesses. Philippines love Japanese products but the price are not too affordable to the masses that's why fictitious brands from who knows where mushroomed around appliances stores. Philippines are now flooded with appliances and products mostly from China and some from Korea. Even cars manufactured from China are being sold in the Philippines. There are many Chinese businessmen in the Philippines considered the Tycoons in the likes of Sy, Gokengwei, Tan to name a few with no competition. If only Japan can invest again and open Malls with their products. I am sure it will be patronized by the filiipinos. But of course prices must correspond to the filipino people standard of living. I am sure they will succeed. IMHO.

@ExcludeMexico

China is corrupted in business dealing too. However most investors feel their money is safer than Phillipines. For Law and order, China is fifty times better than Phillipines. Their punishments are touch.In my old post, I compared Phillipines with her neighbors and Africa. Not with China. China is more expensive than Mexico now. For new Comers, there is little prospect.

Right now,China can afford to buy Mexico and Brazil together. They have 1.4 Trillions dollars in foreign reserve. China does not need foreign investment. It is other way around. Tide has changed.

Tide has changed.

Indeed, but it won't stay this way forever.

China it's self is not a country of high consumer demand. China, like japan makes the majority of its money from exports. This because Chinese people do not have a lot of money. Despit china being the second largest economy, the average income of Chinese people are far below that of the US and Japan. This is do to the low pay to its workers. Well over half the chinese population still live in rural areas. It's hard to believe Japan makes a lot of money at all selling to the Chinese. If Japan is smart, it will move its factories to an economy less volitile toward Japanese investment.

If the J- companies could take their operations somewhere else, wouldn’t they have done so already? There is a reason why they are business-pros and you are the average-joes

If we face the truth and focus on business not feelings, we will admit both China and Japan get hurt and let's not debate which gets hurt the most. Fortunately, as Jay put it, most Japanese businesses are owned and run by professionals, ie they will go to India if they see opportunities and if the projected ROI is likely higher despite they complain to their Chinese wives about the Indian curry. FYI, China invests, too, outbound. BTW, the Germans are definitely laughing, for whatever reason, you might guess.

michikokada Sep. 28, 2012 - 02:33AM JST most Japanese businesses are owned and run by professionals, ie they will go to India if they see opportunities and if the projected ROI is likely higher despite they complain to their Chinese wives about the Indian curry. FYI, China invests, too, outbound. BTW, the Germans are definitely laughing, for whatever reason, you might guess.

Germans are not laughing. Many German companies are planning to invest in India. Many German companies in China are facing problems in business due lo lack of IPR and they are even planning to relocate. Intellectual Property Rights protection and sound legal framework puts India at an advantage against China over German company looking for investments in the region. India has an edge over China. It offers IPR protection and a stronger legal framework against China.

michikokadaSep. 28, 2012 - 02:33AM JST

If we face the truth and focus on business not feelings, we will admit both China and Japan get hurt and let's not >debate which gets hurt the most.

I very much agree with you but I believe one mistake that was made on the Japanese side has been to consider that the other side will behave rationally and professionally. As we've all seen, the tactics used were anything but rational, professional or even legal. My company for example has an office in Tokyo - that I frequently visit - from which we run most Asian operations and another engineering office in Malaysia and Australia but we made the conscious decision not to put our nose in China.

Yes, do support the Philippines Govt's rather 'bad taste' candidacy given the conflict has just started since weeks & experts from both sides strived to fix the issue. The think-tank of the Aquino administration has to be fired for having come up with such a proposal at the very moment. Stay where you are, the Philippines is best positioned to be ideal destination for Casinos, entertainments ( music & exotic ) & call centers.

Most Japanese companies implanted on Mainland China are meant for taping market potential & accessibility, when Nissan - Toyota's money earned in China amounted to 2 digit percentage of their global operation, it has become nit so negligible.

"Good Bad SuperLibSEP. 27, 2012 - 05:25PM JST Everyone is going to lose if we let the emotions of mob rule dictate business terms. Japan will lose and China will lose. China needs technology transfer and business expertise in order to be competitive in the future. Both sides need to start thinking long term."

Agreed with you on the statement. Concern is 'Both sides need to start thinking long term" -- raising this point to PM Noda -- response : good advice, but how about my next election in weeks ? Potentially the next PM Shinzo ABE -- response : we are long term people, I dropped out last time, I'm back, can you call it long term ?

The Philippines, with most renowned reputation of export of maids ( home assistants ...if some find it too irritating ) & vocalists / musicians, has never honnestly made an effort on infrastructure and no industrial plans -- This is by far the only country in S.E. Asia ( well except Borneo too ) that has not built up even a primitive form of petrochemical industry -- without these basic raw materials -- No one will be able establish a basic processing light industry if any kind. Investors ( especially the smart Japanese ) make decisions according to objective analyses but not on certain the verbal advertising of Aquino & team ( Only side-walk hawkers keep shouting to lure passbys. ) !

GO PHILIPPINES ...

let thats chinese to suffer no works, no money, and no foods, .......... todays important is businesnes not war