Japan declared last week that in the next five years, they will transfer all its 200 manufacturing companies in China to the Philippines. This creates a big impact on the country's economic growth.

Based on the statement released by Nobuo Fuiji, head of the Japanese Chamber of Commerce and Industry of the Philippines Inc., since last year there are some Japanese firms started moving their operation in the Phillipines. They believe that Philippines is a growing country and it is competitive enough to cater big investments from them, according to PhilStar.

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He added that currently there are 1650 Japanese companies located in the Philippines. So far, they continue to receive query from different firms in Japan and an estimated increase of 200 up to 300 is expected in the coming months.

Most companies that transferred from China focuses on the Information Technology (IT) industry while some automotive and parts production such as Shimano, a Japanese bicycle manufacturer already invested a P 1.2B facility in Batanggas.

The famous Citizen watch maker company already closed their factories in China and decided to reopen in the Philippines and even Mitsubishi Power Industries already set a final date to move its business in the Philippines according to news update.

The commonly targeted place in the country by most firms are areas located in Calabarzon which includes Cavite, Batangas, Laguna, Quezon and Rizal.

One of the main reason why foreign investors are interested in the Philippines because of the offer given by Philippine Economic Zone Authorities and Board of Investments that gives tax incentives to them. This is a big factor for business companies because they can save a lot from their production cost and taxes.

The increasing wages of Chinese workers also cause the transfer of most firms to the Philippine. They also like the well-educated English-speaking workforce in the country and the country's infrastructure that is stable enough for their business. 

Tagsjapanese industry, japanese companies, japan company