Foreign businesses affected by COVID-19 in China may expand operation in Philippines, DTI chief says

March 4, 2020

Some foreign manufacturing companies in China affected by coronavirus disease have been eyeing the Philippines to expand their operation, Trade and Industry Secretary Ramon Lopez said on Wednesday.

In a press briefing in Malacanang, Lopez said if the COVID-19 outbreak would not be immediately contained, this could affect the supply chain, particularly by those companies located in Hubei province, including Wuhan City, the epicenter of the virus outbreak.

"There's a realization, even by those huge brands, to reconsider their supply chain sources," he said, noting that the Philippines could be the alternative location for their expansion.

He said some of these companies are also operating in the Philippines.

So far, Lopez said some of the firms which indicated expanding their businesses here are from auto, appliances and electronic sectors.

"They're talking about expanding," he said.

Meanwhile, Lopez, during the interview with reporters, said a big manufacturer-exporter has inquired about the property to be vacated by Honda Cars Philippines Inc., which has decided to close its manufacturing plant in Laguna province.

Without naming the company, he said it wants to expand its operation in that area.

"The one which expressed interest now is not from the car industry," he said.

On February 22, Honda Cars Philippines Inc. announced that it would close its plant in Sta. Rosa, Laguna effective March 25.

Its spokesperson reportedly said the closure was not related to local tax but part of the company's global reduction of operations.

The about 380 Honda workers who would be displaced were offered good separation pay, according to the Department of Labor and Employment. Celerina Monte/DMS