From Investment to Innovation: JETRO’s Commitment to the Philippines

The Japan External Trade Organization (JETRO) continues to play a crucial role in promoting Japanese trade and investment in the Philippines. As one of Japan’s key economic partners in Southeast Asia, the Philippines hosts over 1,600 Japanese companies, reflecting a long-standing and dynamic bilateral relationship.

During a recent interview, Mr. Kazuo Nakamura of JETRO shared his perspectives on the current landscape of Japanese investments in the Philippines. He emphasized that Japan consistently ranks among the top investors. The primary areas of Japanese investment include electronics, automotive parts, and transportation machinery, particularly in the manufacturing of automobile parts and motorcycles. These sectors continue to flourish, emphasizing Japan’s established reputation for quality and innovation.

JETRO plays an important role in assisting Japanese businesses as they navigate challenges related to regulations, local partnerships, and market competition. By providing comprehensive research, briefings, and online resources, JETRO ensures that companies remain well-informed about the latest regulations and investment opportunities. Furthermore, the organization facilitates business matching and networking, enabling Japanese companies to identify local partners and effectively promote their products within the Philippines.

Amid Japan’s labor challenges, JETRO also actively encourages the utilization of the Philippines’ young and skilled workforce. Collaborating with local accelerators, government agencies, universities, and research institutions, JETRO supports innovation initiatives and aims to enhance the global competitiveness of Japanese businesses operating in the Philippines.

One of JETRO’s recent endeavors, the Philippine Decarbonization Business Mission, brought together 19 Japanese companies under the Asia Zero Emissions (AZEC) initiative. Supported by local agencies, this mission aimed to explore decarbonization opportunities in the Philippines. The participating companies gained valuable insights into the country’s energy landscape, forged connections with local partners, and discussed ongoing efforts to mitigate carbon emissions. Some companies have already embarked on new sustainability projects as a direct outcome of this collaborative effort.

JETRO also identifies significant potential for growth in consumer-driven sectors as the Philippines’ middle class continues to expand. The increasing demand for retail, food and beverage, and services has attracted well-established Japanese brands such as Uniqlo, Daiso, and Muji, all of which have secured a strong presence in the local market. This trend demonstrates the potential for further investment as the consumer landscape evolves.

JETRO remains committed to advancing investment and fostering innovation, making the most of platforms like the World Expo 2025 to reinforce bilateral ties.

Japanese companies still encounter challenges, particularly concerning the Philippines’ complex tax system and administrative procedures. The CREATE MORE Act and EOTA have been introduced to address these issues, yet there remains scope for further streamlining and transparency. Improving local supply chains and optimizing administrative processes are essential steps toward making the Philippines more appealing to foreign investors.

Looking ahead, the World Expo 2025 in Osaka, Kansai, represents an exceptional opportunity to further strengthen economic ties between Japan and the Philippines. As a global platform for innovation and collaboration, the Expo is expected to facilitate the development of new business partnerships. Last year, over 800,000 Filipinos visited Japan—a record number—and JETRO anticipates that the Expo will build on this momentum, fostering deeper economic cooperation and the exchange of innovative ideas.

JETRO remains committed to advancing investment and fostering innovation, making the most of platforms like the World Expo 2025 to reinforce bilateral ties. As Japan and the Philippines continue to enhance their economic partnership, sustained collaboration will be key to unlocking long-term growth and shared prosperity.

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