Green lanes are a priority for Japanese companies looking to invest in the Philippines
Japanese businesses are still interested in investing in the Philippines because they believe the country’s fast lanes will make it easier for them to do so.
The Department of Trade and Industry (DTI) stated in a statement on Thursday that it held a commercial conversation with Japanese companies, who indicated an interest in expanding and diversifying the goods produced here.
The majority of these businesses are involved in the production of electronics and medical equipment, according to the DTI.
Brother Industries, Canon Inc., Seiko Epson Corp., Terumo Corp., JMS Co., Ltd., ROHM Co., Ltd., NIDEC Corp., Minebea Mitsumi Inc., Murata Manufacturing Co., Ltd., and IBIDEN Co., Ltd. are among the Japanese companies involved.
According to the DTI, these businesses plan to spend approximately USD3 billion (PHP150 billion) in the nation.
“However, they voiced reservations, claiming that these plans are hampered by operational and financial constraints. They mentioned the prompt issue of trip visas for corporate executives and engineers, regulatory bodies’ processing and delivery of permits and licenses, VAT (value-added tax) and other extra fees levied by LGUs (local government units), and availability to Covid-19 vaccines as examples,” it stated.
Japanese companies are seeking a “green lane” for large foreign investments, similar to what other Asean governments provide to investors.
They went on to say that these fast lanes will assist the nation maintain its competitiveness in recruiting foreign investment.
“As the Philippines recovers from the epidemic, we will expand trade and investment relations with other nations, including Japan,” he said. After all, Japan has long been a significant trade partner and source of investment for the Philippines. According to Trade Secretary Ramon Lopez, the nation is an excellent home for Japanese manufacturing and R&D (research and development) operations in electronics, printers, and medical equipment.
In the first quarter of this year, Japan was the country’s largest foreign investment source, accounting for 54.1 percent of all authorized foreign investments.