Philippines loses out to other Asean countries due to higher labour costs

MANILA, Philippines — Increasing labor costs have been driving manufacturers away from China to neighboring Asean countries like the Philippines, but the latter is not as attractive in terms of ease of doing business and infrastructure as Thailand and Vietnam, according to French corporate and investment bank Natixis.

“Facing higher wages, manufacturers have two possible solutions. The first one is to relocate their production sites to Asean. The second solution is to move to the west of China. Because coastal areas (east China) have well established manufacturing sites, they have been regarded as the production base of China,” Natixis said in an Oct. 16 report titled “Will the geese fly to West China or to Asean?”

Citing that salaries across China—both in its eastern manufacturing hub as well as the emerging western region—have been on the rise, Natixis said that existing manufacturers in the mainland “could relocate to Asean rather than to the west of China



Read more: PH to lose out to Thailand, Vietnam as manufacturers leave China | Inquirer News
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

 

No sense in doing business in the Philippines when you could easily lose all the money you have invested. Until they allow foreign ownership, knock off the corruption and improve their lame and slow justice system there will be minimul investment in the country.