Japan upbeat on Indonesia, Philippines

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japanJapanese businessmen believe that Indonesia and the Philippines are the “most profitable” investment destinations in Asia, a survey conducted by the Japan External Trade Organisation (JETRO) Manila has revealed.

The survey, which was conducted from October to November 2012 with Japanese-affiliated companies in Asia and Oceania, showed that the Philippines and Indonesia beat competitors in all industries with 71.9 per cent and 74.4 per cent profitability, respectively.

“This result came about specifically because of the very promising performance of the Philippines in export oriented business with a 72.4 per cent profit as oppose to China in fifth place with a 54.6 per cent profit and India at last with 55.3 per cent revenue,” JETRO Manila said.

However, the Philippines is still perceived as presenting significant challenges to expansion plans, landing in the last rank with 48.2 per cent of participants having issues, while India, Indonesia, and Vietnam were the most favoured domestic markets with 83.6 per cent, 77.3 per cent and 65.9 per cent, respectively, JETRO Manila said.

In terms of difficult occurrences acquiring human capital, the Philippines also rated the highest in the eyes of Japanese firms, scoring a favourable 4.3 per cent rating, followed by Indonesia with 6.8 per cent and Vietnam at third with 13.8 per cent. China is viewed as the most complicated place to hire local workers, proving a hard feat with 35.5 per cent of survey participants, due to its strict working environment regulations.

Fervent nationalism in China brewing over the row concerning the disputed Senkaku/Diaoyu Islands with Japan has also sent Japanese firms scrambling outside of the mainland for new markets to recoup their losses.

A boon for export-orientated Japanese firms, the Philippines was also rated the second more favourable market for customs and administrative procedures, just behind Thailand, which is seen as the least troublesome.

Interestingly enough, the Philippines’ modest salary for manufacturing workers did not harm its appeal. The Philippines’ annual salary of $4,581 for manufacturing staff is neither too low nor too high compared to Asian neighbours. China had the highest with $6,734, while Vietnam had the lowest with $2,602. However, it should be noted that manufacturing engineers in both the Philippines and Vietnam are the lowest paid in the region, with an annual salary of $7,636 and $5,441, respectively.

Major challenges remain for Japanese firms in the Philippines, notably the logistical costs and difficulty in securing raw inputs for industry, and the desire of Filipino workers to move overseas.

 

 

 

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Reading Time: 2 minutes

Japanese businessmen believe that Indonesia and the Philippines are the “most profitable” investment destinations in Asia, a survey conducted by the Japan External Trade Organisation (JETRO) Manila has revealed.

Reading Time: 2 minutes

japanJapanese businessmen believe that Indonesia and the Philippines are the “most profitable” investment destinations in Asia, a survey conducted by the Japan External Trade Organisation (JETRO) Manila has revealed.

The survey, which was conducted from October to November 2012 with Japanese-affiliated companies in Asia and Oceania, showed that the Philippines and Indonesia beat competitors in all industries with 71.9 per cent and 74.4 per cent profitability, respectively.

“This result came about specifically because of the very promising performance of the Philippines in export oriented business with a 72.4 per cent profit as oppose to China in fifth place with a 54.6 per cent profit and India at last with 55.3 per cent revenue,” JETRO Manila said.

However, the Philippines is still perceived as presenting significant challenges to expansion plans, landing in the last rank with 48.2 per cent of participants having issues, while India, Indonesia, and Vietnam were the most favoured domestic markets with 83.6 per cent, 77.3 per cent and 65.9 per cent, respectively, JETRO Manila said.

In terms of difficult occurrences acquiring human capital, the Philippines also rated the highest in the eyes of Japanese firms, scoring a favourable 4.3 per cent rating, followed by Indonesia with 6.8 per cent and Vietnam at third with 13.8 per cent. China is viewed as the most complicated place to hire local workers, proving a hard feat with 35.5 per cent of survey participants, due to its strict working environment regulations.

Fervent nationalism in China brewing over the row concerning the disputed Senkaku/Diaoyu Islands with Japan has also sent Japanese firms scrambling outside of the mainland for new markets to recoup their losses.

A boon for export-orientated Japanese firms, the Philippines was also rated the second more favourable market for customs and administrative procedures, just behind Thailand, which is seen as the least troublesome.

Interestingly enough, the Philippines’ modest salary for manufacturing workers did not harm its appeal. The Philippines’ annual salary of $4,581 for manufacturing staff is neither too low nor too high compared to Asian neighbours. China had the highest with $6,734, while Vietnam had the lowest with $2,602. However, it should be noted that manufacturing engineers in both the Philippines and Vietnam are the lowest paid in the region, with an annual salary of $7,636 and $5,441, respectively.

Major challenges remain for Japanese firms in the Philippines, notably the logistical costs and difficulty in securing raw inputs for industry, and the desire of Filipino workers to move overseas.

 

 

 

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