A survey conducted by the Japan External Trade Organization (JETRO) Manila in October-November last year found that the Philippines is the considered by Japanese companies as the most profitable business location in the Asia and Oceania region, surpassing other Asian economies like Thailand, Malaysia, Indonesia, China, Myanmar, Vietnam and India.
The report of the survey, released this week, compared the profitability, good management, and salary rates among the eight countries studied.
In terms of profitability, the Philippines ranked second to Indonesia (with 71.9 per cent and 7.4 per cent profitability, respectively). The high Philippine score was attributed to the promising performance of the country’s export businesses.
Japanese companies also found the least difficulty in recruiting and hiring general staff in the Philippines (4.3 per cent rating followed by Indonesia with 6.8 per cent and Vietnam with 13.8 per cent).
The Philippines also scored high in terms of industrial peace having the least number of strikes and lockouts.
JETRO said that foreign investors also appreciate the Philippines for its not so time-consuming customs and administrative procedures, coming only next to Thailand in terms of least troublesome and prompt procedures.
The Philippines was also found to have the most attractive salary rates, which translate to a low cost of doing business in the country. In this aspect, the country had a 5.2 per cent rating, compared with Malaysia with 5.3 per cent, Vietnam with 6.5 percent, Indonesia with 17 percent, India with 11.8 percent and China with 9.4 percent.
The Japanese investors surveyed also found doing business in the Philippines to involve the least challenges. Among the challenges mentioned were procurement of raw materials and the tendency of workers to go for contract employment abroad.
However, the Philippines was rated lowest in business development and expansion plans, lagging behind India, Indonesia and Vietnam which were rated the highest.
In 2012, JETRO-Manila received a total of nine investment missions, 168 persons and 1,572 visitors in doing business in the Philippines, a 31 percent increase from the previous year’s figures.
“The good economic fundamentals that the Philippines enjoy have put a weight on how these Japanese companies see the country as an investment destination,” JETRO said.
JETRO said it will continue to promote investment missions and open the door for more investment opportunities all year around.