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The Philippines' Competitive Advantage on Business Environment in Comparison to other Asian countries

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A presentation made by JETRO to DTI and BOI

A presentation made by JETRO to DTI and BOI

Published in: Investor Relations, Business

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  • 銀行保険業を除く上場企業で、所在地別セグメントを発表している企業を集計した。 営業利益(収益)が90年代は国内が4分の3以上を維持(ピンク)。 (06年度73.5%)07年度に67.1%への低下、08年度は47.5%と半分をきった。 収益のみならず売上高も国内の比率が低下している。 90年代は7割が国内。01年度に6割台になるが3分の2は国内の売り上げであった。 それが06年度の66.2%を最後に07年度63.1%、08年度63.8%と国内の比率が下がり、海外の比率が上昇。 上場企業のビジネスが海外比重を高めている証左。
  • どこで儲けているか。 06年度までは圧倒的に米州。いくらアジアの時代といいながらも収益の厳正は北米市場であった。トヨタも米国の高級車が収益源であった。 日本酒もそう。米国は吟醸酒、アジアは普通酒 ところが07年度にアジア大洋州が逆転(北米26%、欧州20%、ア大37%)。 それが08年度は北米3%、欧州6%、ア大75%と極端な構成になった。 売り上げも08年度にア大が北米を逆転、北米30%、欧州19%、ア大41% アジアが上場企業の利益の源泉であることがわかる。
  • Transcript

    • 1. Philippines’ Competitive Advantage on BusinessEnvironment in Comparison to other Asian Countries March 2012 Japan External Trade Organization (JETRO) Manila
    • 2. CONTENTS1. Trend of Japanese Companies and its Background• Moving of production base and sales market to Asia• From “Selection & Concentration” to “Portfolio”• Following to Assembler2. Advantages of the Philippines• Cost Competitiveness• Quality of Human Resource• Incentives3. What shall we do?• Strengthening of Industrial Linkage• Strengthening of Manufacturing Sector• Improvement of Infrastructure
    • 3. Source of Japanese Listed Company’s Profits
    • 4. Source of its Profits by Region アジア大洋州で実に4分の3を稼ぐ日本企業 内円;1998年度 外円;2008年度( Source ) JETRO Headquarter 4
    • 5. CONTENTS1. Trend of Japanese Companies and its Background• Moving of production base and sales market to Asia• From “Selection & Concentration” to “Portfolio”• Following to Assembler2. Advantages of the Philippines• Cost Competitiveness• Quality of Labor or Human Resource• Incentives3. What shall we do?• Strengthening of Industrial Linkage• Strengthening of Manufacturing Sector• Improvement of Infrastructure
    • 6. 1.1 Problems of increasing financial costs (%)Source: JETRO, 2011 Survey of Japanese-Affiliated Firms in Asia and Oceania (Aug-Sept, 2011) 1 1* All the succeeding data has the same source.
    • 7. 1.2Problems in shortage ofland/offices, rising land prices/rental (%) 2
    • 8. 1.3 Problems in skyrocketing payroll costs (%) 3
    • 9. 2.1 Difficulty in recruiting general staff (%) 4
    • 10. 2.2 Difficulty in recruiting executives (%) 5
    • 11. 2.3 Low rate of worker’s employment retention (%) 6
    • 12. 2.4 Problems of worker’s competency (%) 7
    • 13. 2.5 Difficulty in Quality Control (Manufacturing only) (%) 8
    • 14. 3.1 Salary Base up Rate (2011-2012) (%) 9
    • 15. 3.2 Annual Salary * Manufacturing Staff (US $)* including bonuses, allowances, SSS, etc 10
    • 16. 3.3 Annual SalaryManufacturing Engineer (US $) 11
    • 17. 3.4 Annual SalaryManufacturing Managers (US $) 12
    • 18. 3.5 Annual SalaryNon-Manufacturing Staff (US $) 13
    • 19. 3.6 Annual SalaryNon-Manufacturing Manager (US $) 14
    • 20. Reason for embarkation to each city Jakarta Manila Bangkok Hanoi 1990s 3.1% 26.9% 21.4% 21.1% Incentives 2000s 2.8% 26.1% 8.1% 14.5% 1990s 0.0% 3.0% 3.6% 0.0% Free Trade Policy 2000s 2.8% 2.9% 5.4% 3.6%Well-maintained Traffic 1990s 25.0% 12.7% 5.4% 7.9% Infrastructure 2000s 22.2% 4.3% 2.7% 5.5% 1990s 9.4% 16.8% 26.8% 15.8% Market Volume 2000s 11.1% 27.5% 21.6% 18.2% Request from 1990s 9.4% 2.5% 8.9% 15.8% Assembler 2000s 5.6% 1.4% 5.4% 10.9% 1900s 0.0% 5.1% 1.8% 5.3% Cheap Labor Cost 2000s 0.0% 7.2% 5.4% 1.8%Source: Survey of ERIA, 2007 15
    • 21. CONTENTS1. Trend of Japanese Companies and its Background• Moving of production base and sales market to Asia• From “Selection & Concentration” to “Portfolio”• Following to Assembler2. Advantages of the Philippines• Cost Competitiveness• Quality of Labor or Human Resource• Incentives3. What shall we do?• Strengthening of Industrial Linkage• Strengthening of Manufacturing Sector• Improvement of Infrastructure
    • 22. Japanese Companies Contribution for Employment No. of No. of Covered No. of Filipino Average no. of More than 500 Companies Companies Employees Employees employees Total 731 608 209,942 345/firm 91 firmsManufacture 440 354 178,588 504/firm 80 firms Service 291 254 31,354 123/firm 11 firmsSource: JETRO Manila Survey, December 2011 16
    • 23. Business Challenges in Asia (Rated by Japanese Expats in each country) India Vietnam Indonesia Thailand Malaysia China Philippines Fluctuation in the Increase in exchange rate of Salary Increase 80.3 Salary Increase 83.3 Salary Increase 75.2 Salary Increase 68.3 procurement costs 61.5 Salary Increase 84.9 local currency 55.4 against US$ Difficulty in the Ability and Emerging Increase in local Power Shortage and Ability and awareness 71.6 awareness of local 63.2 Burden on taxes 62.1 58.8 Competitors (cost 57.4 procurement 64.1 procurements of 54.7 brown outs of local employees employees competition) costs raw materials and parts Inadequate Cumbersome Ability and Ability and Inadequate Increase in Infrastructure for 64.8 procedures such as 62.4 60.5 56.7 Salary Increase awareness of 53.5 awareness of local 50.8 Infrastructure procurement costs 55.0 local employees logistics customs employees Difficulty in the local Fluctuation in the Emerging Complicated taxComplicated tax policies procurements of Emerging Competitors exchange rate of Competitors Inadequate 63.0 raw materials and 61.6 policies and 59.2 55.4 52.1 53.3 Infrastructure 50.4 and procedures (cost competition) local currency (cost procedures parts against US$ competition) EmergingEmerging Competitors Power Shortage and 62.3 61.6 Competitors (cost 57.8 (cost competition) brown outs competition) Ability and * Items described herein are considered major and serious issues/challenges Takes too much time in Increase in 57.4 procurement costs 53.6 awareness of local 56.4 by the managers of the Japanese firms in each country. Only the items with 50% or higher survey response customs clearance employees were included. Only the items with 50% or higher survey response were included. Insufficient Cumbersome Difficulty in hiring Legislative system * Specific answers are being shown for similar questions with the response procedures such as 56.2 future leader-class 52.8 54.8 rate of 50% or higher. and its opaque customs talent application Complicated Fluctuation in the * The survey was conducted from August 1 up to September 15, 2011 (1.5 months)Increase in procurement government exchange rate of 54.5 procedures (permits, 50.7 local currency 52.2 costs licenses, etc.) against US$ Difficulty in the local (Source) 2011 Business Activity Survey Among Japanese Companies in Asia Increase in procurements of raw 54.5 51.9 and Oceania, October 2011 by JETRO procurement costs materials and parts Complicated Inadequate systemgovernment procedures 52.5 of disseminating 51.3 (permits, licenses, etc.) notices and rules 17