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Philippines and Japan Sign Multiple Manufacturing Agreements and Other Investment Opportunities

Asia Manufacturing Review Team | Friday, 10 February 2023

 Asia Manufacturing Review Team

On the third day of President Ferdinand R. Marcos Jr.'s official visit to Tokyo, the Philippines and Japan signed approximately 35 investment agreements covering a wide range of areas of cooperation.

Marcos witnessed the signing of Letters of Intent (LOI) between the Philippine and Japanese governments, as well as various companies from both countries, on investments.

The agreements are expected to strengthen bilateral relations between the Philippines and Japan, according to Communications Secretary Cheloy Garafil in a statement.

The most important agreement signed was a Memorandum of Cooperation between the Department of Trade and Industry (DTI) and the Japan External Trade Organization (JETRO), which was signed by Trade Secretary Alfred Pascual and JETRO CEO Nobuhiko Sasaki.

Asti Corporation's wiring harness manufacturing project, Brother Industries, Ltd.'s printer manufacturing project, Itochu Corporation's pineapple production volume, Japan Tobacco Inc.'s factory project, Mitsubishi Motors Corporation's automobile manufacturing project, and Nidec Corporation's (Nidec-Shimpo Corporation) speed reducer gear manufacturing project were all planned for expansion.

DoubleDragon Corporation/IwataChizaki Inc. pledged to build a hotel in the Philippines, and Mitsubishi Motors Corporation renewed its commitment to meet production targets.

Several companies, including Kurabe Industrial Co., Ltd. for autoparts, MinebeaMitsumi Inc. for optical image stabiliser (OIS) production and solar project, Tamiya, Inc. for plastic models and RC cars, TDK Corporation for next generation HDD heads and components project, and Yamaichi Electronics for IC sockets, have pledged to build new factories in Japan.

There were also two factory expansion agreements, one with Murata Manufacturing Co., Ltd. for multi-layer ceramic capacitors and the other with Kenko Tokina Co., Ltd. for telescope factory.

Other investment pledges included Marubeni Corporation's energy, transportation, healthcare, and afforestation projects; Mitsubishi Corporation's infrastructure development, construction activities, transportation, commercial and residential real estate development, and mass housing projects; and Nomura Real Estate Development Co., Ltd./ GT Capital Holdings' property development project.

There was also an agreement between Kawasaki Heavy Industries, Aboitiz, Amber Kinetics, and IKS Co. Ltd. to pursue a mechanical energy storage technology project, as well as a deal for software development outsourcing between Ubicom Holdings, Inc. and Advanced World Systems,Inc.

Toyota Motor Corporation agreed to collaborate with the Philippines on a light commercial vehicle (LCV) manufacturing project; Renova, Inc. on a renewable energy project; Sojitz Corporation on a property development and telecommunications project; and Taiheiyo Cement Philippines Inc. on a kiln renewal, distribution terminal, and berth reinforcement project.

There was also an agreement between the Department of Environment and Natural Resources (DENR), Marubeni Corporation, and Dacon Corporation for the Joint Credit Mechanism (JCM) project; Hitachi, Ltd. and Filinvest Development Corporation for the development, construction, and operation of desalination facilities to supply potable water to Metropolitan Cebu; Sumitomo Corporation's North South Commuter Rail and Metro Manila Subway for the rolling stock project; Oriental Energy & PLC for the rolling stock project.

Hankyu Hanshin Properties Corp. and W Landmark Inc. co-invested in a REIT and formed a joint venture in commercial real estate development activities; and JERA Co., Inc. and Aboitiz Power Corporation collaborated in the development of ammonia and hydrogen value chains in the Philippines, as well as assessing the feasibility of ammonia co-fired power generation in the country.

Other commitments included joint venture partnerships in healthcare, logistics and warehousing, and education between Sojitz Corporation and Maestro Holdings, Inc.; a housing project between Vista Land & Lifescapes, Inc. and Mitsubishi Estates Co., Ltd.; the ceremonial hand-over of the Certificate of Gratitude: AMEN and Go Negosyo; and a demonstration project for the development of smart mobility between Bases Conversion and Development Authority and New Energy and Industrial Technology.

In a speech following the signing of the agreements, Marcos assured Japanese investors that his administration is implementing "vital and game-changing reforms" to improve the Philippines' business climate.

In addition to the 35 investment agreements, the Philippines secured seven bilateral agreements with Japan to strengthen cooperation in various fields such as infrastructure development, defence, agriculture, and information and communications technology.