The Department of Trade and Industry (DTI) in the Philippines discussed the possibilities of wire harness operations expansion to the Philippines under the new Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, during the online and sector-specific roundtable on 20 April 2021, organized by the Philippine Trade and Investment Center (PTIC) in Tokyo.
“Wire harness is one of our biggest exports and for 2020 the Philippines exported USD 1.886 Billion worth of wire harnesses to the world. Wire harness exports to Japan of USD 857 Million comprise about 45.44% of our total wire harness exports. For last year, Japan was our biggest market for wire harnesses followed by the United States of America, South Korea, Canada, and Thailand,” said DTI Secretary Ramon Lopez.
The Philippines is the fourth largest exporter of wiring harnesses to the world. The automotive wiring harness market is expected to surpass USD 93 Billion by 2023. During the meeting, the trade chief highlighted that the demand for greater fuel efficiency and electric vehicles will continue to fuel this growth for many years to come.
Two out of six Japanese companies have confirmed expansion projects, and two are new investors. While the remaining two are still completing their expansion and diversification plans, said the Commercial Counsellor and Special Trade Representative who leads the DTI field office in Japan.
Secretory Lopez also added that the total collective value of the new and expansion investment projects from this group of Japanese locators is conservatively estimated at P10.5 Billion. Additional jobs created by the same investments are projected to reach 18,650.