Japanese food firms to invest $500M in the Philippines
The Philippines will be expecting huge investments coming from Japan as several Japanese firms are planning to invest $500 million (P24 billion) in aquacultured products for export back to Japan.
Bernie Magkilat mentioned in his article for Manila Bulletin that the firms will be farming eel, flying fish, and tuna, which are to be cooked and packaged in the Philippines then sold back in Japan.
The companies are targeting areas like General Santos and Davao in Mindanao, the Clark Freeport Zone in Pampanga, and the Cagayan economic zone for the investments.
The chief operating officer of Nisshin Food Material Company Ltd, Naoyuki Ishikura confirmed that they have already spent 20 million yen or P9 million as an initial investment for the project.
Nisshin Food Material Company Ltd is one of 15 Japanese companies that are part of the joint venture.
Meanwhile, Noboru Oonishi, chief executive of North Japan Trade, will be in charge of distributing the finished product in Japan.
Former Nueva Ecija Rep. Renato Diaz, one of North Japan Trade’s local partners, said that the venture will generate as many as 8,000 jobs that will run for two to two-and-a-half years.
An article by Warren de Guzman for ABS-CBN News said that the deal is one of the effects of the changing business environments in Japan and the Philippines.
Back in Japan, Prime Minister Shinzo Abe, together with the Bank of Japan, have unveiled new stimulus measures in order to boost the second largest economy in the region out of deflation. The Prime Minister even decided to delay a consumer tax hike in hopes of getting his people to buy more.
Meanwhile, President Rodrigo Duterte wants more resources to be directed to agriculture, thus generate more quality jobs accessible to a larger portion of the population. The president also want the development to happen outside the National Capital Region.
Diaz and the Japanese believe that Duterte’s plans should contribute to the success of their half-a-billion dollar venture in the Philippines.