The Philippines has been cited by Japan as among, if not the most, competitive in seven manufacturing hubs in Asia when it comes to cost.
Tomohiro Ando, executive director of the Japan External Trade Organization, in his presentation at the Security Bank Economic Forum yesterday cited findings of a survey conducted among Japanese companies which showed the Philippines was the second most cost competitive in 2020 after Vietnam.
Ando said this is several years of being the most competitive compared to Indonesia, Malaysia, Thailand, Vietnam, China and India.
Cost in the Philippines rose 2.2 notches to 75 using 100 as base for Japan cost.
That means the manufacturing cost in the Philippines is 25 percent less than in Japan.
Ando also cited survey findings which said the ratio of companies saying wage hikes in the Philippines is a serious management matter is much lower than the rest of the countries in Asia.
Even on a US dollar basis, Ando said the salary in the Philippines “has been much, much more stable than other countries in Asia,” Ando said.
“For example in Vietnam, (the daily wage) was just the half of the Philippines in 2011, but it became more than double within 10 years in the past. But I think most of the Japanese business people’s perception is that in Vietnam, the labor costs is around half of the Philippines. But the actual situation is much different,” he added.
Ando said Japanese firms have also cited the competitiveness of the Philippines in certain types of manufacturing and the abundance of English-speaking human resource. – Irma Isip
