Japan – A total of eighteen business agreements were recently signed (30 October, 2017) during the sidelines of President Rodrigo Duterte’s working visit to Japan, bagging total investments pledges of USD 6 billion (PHP 300 billion).
“The growing number of Japanese corporations, interested in partnering with Philippine enterprises, shows the value proposition of the country as a favored destination for Japanese Foreign Direct Investments (FDIs),” said Department of Trade and Industry (DTI) Secretary Ramon Lopez, who witnessed the exchange of business agreements with President Rodrigo Duterte.
DTI Secretary Ramon Lopez received Letters of Intent (LOIs) from the several Japanese companies who are keen on expanding operations in the Philippines, namely: Marubeni Corporation for power, railways and water projects; Sumitomo Metal Mining Co. Ltd. for mineral processing; Taiheiyo Cement Corporation for plant and production related infrastructure expansion projects; Tsuneishi Shipbuilding Co. Ltd. for medium-sized marine vessels manufacturing; Ministop Co. Ltd. and Lawson for HR training programs and outlet expansion in the Philippines; and Itochu Corporation for investments in agricultural equipment, bananas and pineapples production, and irrigation projects.
Japan Tobacco Inc., likewise stated its interest to further expand Philippine operation and contribute to the Department of Finance’s (DOF) improved revenue collection program.
Meanwhile, a number of companies from Japan also stated interest in pursuing joint ventures in areas earmarked as strategic to sustainable development and inclusive growth, such as agriculture, renewable energy, manufacturing, services, environment and research and development (R&D) includingTokyo Gas Co., Ltd., on joint study on natural gas usage in the Philippine domestic market with the Japanese Ministry of Economy, Trade and Industry (METI); Itochu Corporation with Metro Pacific Investments Corporation (MPIC) on additional renewable energy projects and infrastructure projects;Hitachi Ltd. with Manila Electric Company (MERALCO) on stationary Battery Energy Storage System (BESS); Nomura Real Estate Development Co.,Isetan Mitsukoshi Holdings Ltd., with Federal Land Inc., on a commercial/residential complex that will soon rise in Bonifacio Global City; Yamato Kogyo Co. Ltd., with SteelAsia Manufacturing Corporation on an integrated steel plant; Ubicom Holdings Inc., Advanced World Systems Inc., with Alsons/AWS Information Systems for a software development outsourcing, testing, and R&D project on data analytics, automation, Internet of Things (IoT), automotive software development, enterprise systems and web application, embedded systems, and mobile systems development, Hitachi Asia Ltd., Philippines with Conversion Development Authority (BCDA) in an information and communications (ICT), transportation and urban development projects; and Densan System Co. Ltd. (DSK) with CIS Bayad Center Inc. on a Technology – Business Processing Management (IT-BPM) agreement on financial technology.
“These projects, ranging from retail, commercial, and residential property development, are indubitable signposts of a growing modern economy,” Sec. Lopez said, adding that the tie-ups in these sectors are expected to generate more jobs, raise business standards, and improve business efficiency.
Subic Bay Metropolitan Authority (SBMA) also received LOIs from List Co. Ltd. and Subic Smart Community Corporation on mixed property development projects in Subic Freeport.
“These projects committed not only capital infusions but transfer in technology and human resource (HR) development programs, cementing anew the parameters and direction of Philippine-Japan economic exchange and complementarity,” said the Trade Chief.
“Ultimately, these projects will help chart greater trade and investment engagements between our two countries in order to generate broader inclusive growth and shared prosperity for all, he concluded.