Japanese to Continue Helping Auto Parts Dev't

Manila Bulletin, August 20, 2003 | Go to article overview

Japanese to Continue Helping Auto Parts Dev't


Byline: BERNIE CAHILES-MAGKILAT

The Japanese government continues to assist the development of the Philippine automotive parts manufacturing sector by extending for another two years the Automotive Roving Experts Dispatch program.

Shinichi Saito, executive vice-president of Japan External Trade Organization (JETRO), was optimistic the extension of the program could help raise the level of local automotive parts procurement by Japanese assemblers operating in the country.

Saito noted a JETRO study conducted in November last year among the 10 countries in Asia which showed that Japanese companies procure least in the Philippines compared to other countries where Japanese companies are also operating.

This means the percentage of companies with local procurement ratios of 51 percent is higher in Vietnam with 19.4 percent, Indonesia with 38.6 percent, Thailand with 42.9 percent, Malaysia with 44.8 percent, Singapore with 45.6 percent and China with 47 percent. The highest is India with 66.7 percent and Taiwan with 50.5 percent. The survey, however, covered all other manufacturing operations including automotive parts.

Of the 49 Philippine companies, more than half of the member companies of the Motor Vehicle Parts Manufacturers Association of the Philippines, that participated under the JETRO program, Saito cited the three companies which have reported substantial reduction in their cost of production. …

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