WITH household consumption at 72 percent of the GDP, more Japanese companies are being expected to enter the country’s retail sector.
A ranking official of the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) who declined to be identified said it is one area of interest among Japanese companies, that are looking at the country as an investment destination.
“There is a growing domestic market. We have seen growth in the food and clothing sectors. We are encouraging them to come,” the official said, who also cited Japanese casual-wear retailer Uniqlo as a prime example.
The official said although it remains costly to start operations in the Philippines, the current administration of President Aquino has done a lot to make the country an attractive investment destination.
“The government has done a lot and we appreciate it very much. We expect the investment environment to be further developed,” the official said, while explaining that the 60-40 provision of the constitution is only part of the issues that investors have to deal with.
For the first half of 2015, Japanese investments into the country fell flat at P11.18 billion, as compared to P11.10 during the same period in 2014.
According to the official, the government should encourage first- and second-tier companies to invest in the country.
The official also added that the government should review the country’s investment incentives, as compared to those being offered in Thailand and Indonesia.
When compared to Thailand, Vietnam and Indonesia, Japanese investments into the Philippines is the lowest.
Japanese companies are currently using the China+1 in its investment strategy in which they place a certain amount of investment in an Asean country similar to their investment in mainland China.
The JCCIPI, a member of the Joint Foreign Chambers in the country, currently has 600 member-companies.