In a recent seminar co-organized by the Department of Trade and Industry (DTI) and the ASEAN Japan Center (AJC) entitled “Changing Trade and Investment Landscape in ASEAN and the Philippines”, DTI Undersecretary Nora K. Terrado cited the importance of global value chains and non-equity mode (NEM) in the growth of Philippine exports.

“NEM is of particular importance to the country given our participation to activities such as IT-BPO, international subcontracting, franchising and licensing among others,” said Terrado.

Meanwhile, global value chains for international production translate to the different stages of the production process across different countries. This allows outsourcing and offshoring of activities of many multinational enterprises (MNEs).

AJC Secretary General Masataka Fujita and Dr. Chie Iguchi from Keio University led the presentation of three (3) AJC-initiated papers namely, “Global Value Chains in ASEAN: A Regional Perspective”; “Global Value Chains in ASEAN: The Philippines”; and “Non-Equity Modes of Trade in ASEAN: The Philippines.”

The papers provide valuable perspectives on the strategic importance of participation in global and regional value chains as ASEAN member states maximize opportunities and benefits of economic integration while recognizing differences in economic development and industrial policies, and the growing threat of protectionism.

To further substantiate the initial findings in the paper, interactive dialogues were conducted between AJC and a panel of discussants including Ambassador of Myanmar to the Philippines H.E. U Win Naing, First Secretary Jenni McEwin of the Australian Embassy in the Philippines and Director Senen M. Perlada of the DTI-Export Marketing Bureau. Meanwhile, representatives from the academe include Dr. Joseph T. Yap, Dr. Ramon L. Clarete of the University of the Philippines School of Economics, Dr. Francis Mark A. Quimba of the Philippine Institute of Development Studies, and private sector representative, Executive Director Penny S. Bongato of the IT and Business Process Association of the Philippines (IBPAP).

More than 150 representatives from government, industry, and think tanks participated in said seminar.♦

 DTI AJC Seminar 1
In photo (from left to right): DTI Export Marketing Director Senen M. Perlada, Dr. Chie Iguchi from Keio University, Executive Director Penny S. Bongato of IBPAP, AJC Secretary General Masataka Fujita, DTI Undersecretary Nora K. Terrado, Mr. Shozo Suzuki,  Investment and EPA Advisor JETRO, Dr. Ramon L. Clarete of the University of the Philippines School of Economics, Dr. Francis Mark A. Quimba of the Philippine Institute of Development Studies and First Secretary Jenni McEwin of the Australian Embassy in the Philippines.


 DTI AJC Seminar 2
In photo (from left to right): His Excellency U Win Naing, Ambassador of Myanmar to the Philippines, AJC Secretary General Masataka Fujita, First Secretary Jenni McEwin of the Australian Embassy in the Philippines, Dr. Joseph T. Yap of the University of the Philippines School of Economics, and Dr. Francis Mark A. Quimba of the Philippine Institute of Development Studies.
DTI Secretary Ramon M. Lopez (left) with Japanese Trade Minister Hiroshige Seko at the sidelines of the 49th ASEAN Economic Ministers’ (AEM) Meeting in Pasay City last 9 September.

As part of the continued cooperation between the Philippines (PH) and Japan (JP), Department of Trade and Industry (DTI) Secretary Ramon M. Lopez met his Japanese counterpart, Economy, Trade, and Industry Minister Hiroshige Seko in a bilateral meeting held on 9 September 2017 at the sidelines of the Philippine hosting of the 49th ASEAN Economic Ministers’ (AEM) Meeting and Related Meetings in Pasay City.

The meeting commenced with a turnover of “Japan’s Inputs Towards the Formulation of Industry Vision of the Philippines,” an industrial development scenario for PH under the Philippines-Japan Industrial Cooperation Dialogue, which will contribute to the finalization of PH’s inclusive, innovation-led, industrial strategy (i3s).

“This will help the Philippines fine-tune its inclusive and innovation-led industry strategy, as well as contribute to the realization of the government’s vision of no one left poor,” said Sec. Lopez.

Industry cooperation initiatives will enable PH to take advantage of JP’s expertise and experience as PH adopts these in the local industry setting. Further improvements to PH’s i3s will help upgrade local industries, allow them to better participate in global value chains, and create more, better, and higher value jobs for Filipinos.

PH also expressed its support to JP’s proposal on the introduction of rules in e-commerce and internet protocol (IP).

Substantive discussions were also held on improving market access for top PH exports through the General Review of the Philippines-Japan Economic Partnership Agreement (PJEPA) during the scheduled 6thJoint Committee Meeting this September, as well as on exerting utmost efforts to achieve substantial outcomes for the Regional Comprehensive Economic Partnership (RCEP) agreement under the Philippines’ ASEAN Chairmanship this year.

Minister Seko raised the potential effects of public enterprises under RCEP to small and medium enterprises. Sec. Lopez said that these issues must be monitored to ensure that industries are protected.

PH thanked JP for its willingness to meet for the PJEPA Joint Committee Meeting, which has prime importance to move forward with the discussions on tariff preferences, particularly for products of interest to PH such as bananas, mangoes, and pineapples.

PH also conveyed its intention to join the Trans-Pacific Partnership (TPP). As an update to the status of TPP, JP shared that two negotiating rounds have been concluded between JP and Australia and both are scheduled to meet for the third time. JP is confident that the agreement in principle will be established by November.

Trade deals are expected to further boost economic and trade relations with JP, which was PH’s 2nd biggest trading partner, top export market, and 2nd largest import supplier in 2016. In particular, these trade engagements benefit exporters of top agricultural products to JP, most of which are from the Mindanao region.

Top export products from Mindanao include fruits, bananas, tuna, coconut products, fresh pineapples that comprised 60.5% of total PH exports to the world in 2016. These, together with other products included in the PH’s request for better market access to JP will further enhance competitiveness of PH exports in the Japanese market.

SEVENTEEN local companies take advantage of the Philippines’s developing trade relations with Japan, as it showcases the country’s finest tropical flavors in the largest food fair in the Asia-Pacific region.

The local companies will feature the country’s premium tropical products, including banana, coconut, mango and pineapple, in the 42nd International Food and Beverage Exhibition, popularly known as Foodex Japan, from March 7 to 10 in Chiba, Japan.

As a major... Read more

TOKYO, Japan—Philippine-Japanese trade relations remain robust, as the Philippine mission to Japan headed by the Department of Trade and Industry secured over P20-billion investment commitments from Japanese firms during the three-day visit from February 28 to March 2.

On the sidelines of the Investment Forum in Tokyo and the 35th annual meeting of the Japan-Philippines Economic Cooperation Committee  and the Philippines-Japan Economic Cooperation... Read more

By Agnes Legaspi | Assistant Director, DTI-EMB

TOKYO, Japan—The Philippine team, composed of the information and communications technology (ICT) and business-process management (BPM) companies, on Tuesday organized an IT–BPM seminar and prearranged a business-to-business (B2B) meeting in Osaki Bright Core, Tokyo, Japan, as part of the Outbound Business Matching Mission for the IT-BPM service.

The event was part of the Philippine participation at the 26th Software Development Expo (Sodec 2017)  in Tokyo Big Sight, Japan.

The IT-BPM seminar was participated in by 78 Japanese counterparts representing CEOs, operations managers, decision makers  and industry influencers in the area of ICT and outsourcing. The event was graced by Deputy Chief of Mission  Eduardo M.R. Menez,  who opened the seminar.

The Department of Trade and Industry’s Export Marketing Bureau (DTI-EMB) was represented by this year’s head of mission, Assistant Director Agnes Legaspi and the Philippine Trade and Investment Center in Tokyo headed by DTI Senior Official Commercial Counselor Bernardita Mathay.

The DTI-EMB and PTIC Tokyo organized the mission jointly with industry and government and partners, namely, the Philippine Software Industry Association led by Jonathan Luzuriaga and the Department of Information and Communications Technology Undersecretary Monchito  Ibrahim.

Legaspi welcomed the participants, giving emphasis on maximizing the time to network, negotiate and explore business opportunities during the one-to-one B2B and gather relevant information about the companies’ services and the Japanese clients’ requirements.  She concluded her message with a very positive hope that full engagement of the Philippine delegation and their counterparts in this seminar and the B2B matching will further pave the way in generating more businesses and deeper partnerships with Japan.

A testimonial of the Philippine participants’ expertise was delivered by Shingo Tsuboi, president and CEO of Intelligent Business Solutions.

Ibrahim provided a comprehensive talk and presentation on the topic, “Enabling digital opportunities  and Innovations in the Philippines”.

Meanwhile, Luzuriaga delivered a talk on this year’s Philippine theme “Go Global, Go Digital, Cocreate with the Philippines”.

Nine Philippine companies presented their service offerings during the seminar, namely, Exist Software, Pointwest Technologies, Saiff Solutions, Personiv, Advance World Systems, Gulliver Offshore Outsourcing, DTSI, Tsukiden Global Solutions and Cybertech.

Sodec is considered one of the most awaited annual and productive international promotion events for the IT-BPM sector. Japan is acknowledged as a major market for the Philippine IT-BPM sector, and as such, the Philippines has brought a team this year composed of various segments of the IT-BPM services not only limited to IT outsourcing, but also includes application development and management, big data,  analytics, mobile and social-media platforms, BPM, security component development, cloud solution  and other ICT-related functions for businesses.

The event aimed to pursue further B2B opportunities and partnerships in the various segments of the IT and BPM industry. In the light of new innovations and technology-driven businesses, participating Philippine and Japanese companies are said to be in the right place and the right time to gather today, as mentioned by Legaspi in her message.

The Philippines’s consistent market presence in Japan for more than a decade now manifests deepening business relationships between Philippine companies and the Japanese counterparts.

The Philippine IT-BPM industry is recognized as the top exporting-services sector in the country. This has positioned the Philippines as a global player. The Philippines is now highly ranked among top outsourcing destinations in the world.

Nine cities of the Philippines made it to the first 100 locations. In the same manner, the Philippines considers Japan as a major partner/market for outsourced services providing significant opportunities in IT and business-process outsourcing, being the third-largest IT market in the world.

Consistent Philippine participation in Sodec and business matching every year in more than a decade now has drawn considerable success, many opportunities and invaluable experiences from participating companies.

For 2017 it encouraged more companies to join, as represented by the  22 established  Philippine IT companies (from 16 participating companies last year). This year, featured companies will again wave their banners in the Philippine Pavilion in Sodec at the Tokyo Big Sight from May 10 to 12 inspired by this year’s  theme.

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