MANILA -- The Philippines needs to be more competitive in terms of costs to attract more Chinese manufacturing companies to locate in the country with the increasing operation cost in China.
In an interview, International Chamber of Commerce Philippines (ICCP) Founder and Philippine Chamber of Commerce Industry (PCCI) Chairman Emeritus Francis Chua said should Chinese manufacturers ever decide to relocate their operations outside China, they will look for a place with even lower production cost.
“If they come here, it’s not because of trade war. If they come here, it’s because of cost of production in China is more expensive than the Philippines,” said Chua.
“But before they moved here, they will be comparing the Philippines with other ASEAN countries,” he added.
He mentioned that the Chinese government is pushing for a trade economic zone here where Chinese manufacturers can locate.
Early this year, Chinese Ambassador to the Philippines Zhao Jianhua said that China is eyeing to establish its first industrial park in the Philippines between 2018 and 2019.
This is part of the agreement between the two countries to set up industrial parks for Chinese locators in the Philippines.
Likewise, it was also noted by HSBC Private Banking Managing Director and Head of Investment Strategy and Advisory for Asia Cheuk Wan Fan that Chinese enterprises have been increasing their outward direct investments.
“This is going to be a sustainable trend, and China is actively investing in ASEAN as more competitive production cost being offered in the ASEAN region,” she said. (PNA)
