American-Taiwanese luggage manufacturer PLG Prime Global Company plans to restart its operations in the Philippines by setting up a manufacturing facility in Hermosa, Bataan, the Philippine Economic Zone Authority (PEZA) said.
PLG Prime is one of the leading luggage manufacturers with facilities in Taiwan, China and the United States, PEZA said.
In a text message to reporters on Tuesday, PEZA Director General Tereso Panga said PLG Prime Global operated in the Philippines from 2018 to 2022, also in Hermosa, and then transferred its luggage manufacturing facility to China.
“But because of the US-imposed reciprocal tariff, they want to revive their operations in the country to be able to export to the US,” Panga said.
On April 2, the US announced it would impose a 17-percent tariff on Philippine exports, second to the lowest in Southeast Asia. This is lower than the 32 percent for Taiwan and 34 percent for China, where PLG Prime Global operates.
Panga said the company has reserved a lot at the Hermosa Industrial Park “where they will put in bigger investments this time.”
Panga did not disclose the amount but said the company will file its application for registration within 15 days.
“Apparel, footwear and luggage manufacturing are the industries that we lost to China, Vietnam and Cambodia. With the reciprocal tariffs, we hope to revive these industries in the Philippines,” Panga said.
PEZA has received inquiries from several
investors with manufacturing facilities in the US, China, Taiwan and even Vietnam, but declined to elaborate.
“When you’ve got American, Chinese, Taiwanese and even Vietnamese manufacturers knocking on your door, you know something’s shifting, and it’s shifting towards our direction. The Philippines is back in the conversation,” Panga said.
Panga said he met with representatives of PLG Prime Global on April 16 to discuss investment opportunities in the country under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, which grants a host of incentives to proponents and the emerging China+2 strategy.
Panga said under the China+2, the Philippines is now being regarded as the new “plus one” preferred destination in Asean by relocating companies from China.
