The Impact of US-China Trade War on Taiwanese Investment in the Philippines

講述的順序為1. 介紹MSK集團 2 台商地圖與這一兩年來投資的客戶跟詢問的廠商類別3.個案說明 4. 台商投資菲律賓前後所會遇到的問題 5.疫情對投資者的影響與最後的建議

 

Agenda/Content as follows:

1. Introduction to MSK Group

2 Taiwan’s business maps and customers who have invested in the past two years

3. Case description

4. Problems encountered by Taiwanese businessmen before and after investing in the Philippines

5. Impact of the epidemic on investors and final recommendations

 

1. 介紹MSK集團

首先可能大家會質疑，為什麼會邀請我來做這議題的講者? 這要先談到我們公司， MSK 集團成立於2005菲律賓，初期我們集團是幫台商建設廠房起家，而後涉入廠房租賃的部分，目前光在蘇比克這個地區就擁有超過20公頃的廠房面積在做出租，另外克拉克特區跟馬尼拉南部的CAVITE也有業務，在2016年我們拿下1996年APEC在菲律賓開會的舊址，來興建蘇比克的新地標，這地標目前正在興建中。 另外幸運的是去年2019年，我們在蘇比克特區拿到了一塊200公頃的土地，正在開發工業區。 眾於上述的原因，我們可以說是大部分台商與其他外商投資菲律賓時(特別是菲律賓馬尼拉以北)必定會拜訪的對象之一。同時我也負責集團體系的物流公司。因此對於新進的廠商的動向可以說比其他業者來說，知道的多。

(*放我們的工業區地理地圖與我們的廠房資料!!!、放物流公司的圖片)

 

1. Introduction to MSK Group

First of all, you might be wondering why I was invited to speak on this subject? So, first, I would like to introduce our company (MSK Group). MSK Group was established in the Philippines in 2005. At the beginning, our group started building factories for Taiwanese companies and then took part in the lease of warehouses. Currently, the area of Subic has more than 20 hectares of warehouse space for rent. In addition, Clark Free Port and CAVITE in Southern Manila also have this kind of business. In 2016, we took over the old site of the 1996 APEC meeting in the Philippines to build Subic’s new landmark, which is currently under construction. Fortunately, last year, in 2019, we acquired 200 hectares of land in the Subic and are developing an industrial park. Among the reasons mentioned above, we can say that most Taiwanese companies and other foreign investors will definitely visit one when they invest in the Philippines (especially north of Manila, Philippines). At the same time, I am also in-charge of the logistics company. Therefore, it can be said that, I know a lot about the movements in the field of business and manufacturing, more than any other people.

 

2. 台商地圖這一兩年來投資的客戶跟詢問的廠商類別Taiwanese businessmen who have invested in the past two years and the types of manufacturers inquired

在第二個部分，我們來看一下台商地圖。這是以目前工業局的資料加以修改而成。

我用綠色標註出來的是中美戰後擴廠或投資的廠商…當然有些廠商的投資比較低調所以資料上沒有。

我們可以看到在這地圖上，台商坐落的地點可以以馬尼拉我上跟下做為區分。其中馬尼拉以南日本廠商眾多，群落較為齊全故不少作日商產品生意的台商也坐落於此，這邊最知名的廠商就屬新金寶。

 

因中美貿易戰的關係，這一兩年來過來菲律賓考察、投資的廠商確實增加了不少。特別是中美貿易戰剛開始的那一段日子。幾乎天天都有訪客。這些訪客的產業可歸類於幾大類。A. 紡織相關的。如包袋類、泳裝、遮陽傘   B. 電子相關 如家電業、電子類線材… C. 家具類 如櫥櫃、燈飾…. D. 水產類 E. 五金類； 如手工具等

另外也有原本已經在菲律賓投資因中美貿易關係而擴大生產規模的。如鞋業

這些業者

這些業者，有些是被買家要求要在中國之外再找到另一個生產基地，亦或者是因為自身需求而來考察。

In the second part, let's look at the map of Taiwanese businessmen. This is based on the current information from the Bureau of Industry.

What I have labeled green are the manufacturers that have expanded or invested in Sino-US post-war... Of course, some manufacturers have relatively low-key investments, so there is no information in the data.

We can see that on this map, the location of Taiwanese businessmen can be distinguished by the North and South of Manila. Among them are many Japanese manufacturers/investors in South of Manila, and the community is fairly large. Therefore, many Taiwanese businessmen who do business with Japanese products are also located here. The most well-known manufacturer is New Campbell.

 

Indeed, as a result of the Sino-US trade war, the number of manufacturers who have come to the Philippines for inspection and investment in the last two years has increased. Especially when the Sino-US trade war started. There are visitors almost every day. The industries of these visitors can be classified into several categories. A. Textile related. Such as bags, swimwear, parasols B. Electronics related, such as household appliances, electronic wire... C. Furniture, such as cabinets, lighting... D. Aquatic products E. Hardware; such as hand tools, etc.

In addition, some have already invested in the Philippines to expand production scale due to Sino-US trade relations. Footwear

These operators

Some of these companies were asked by buyers to find another production base outside of China, or they came to investigate because of their own needs.

 

3. 個案說明 Case description

 

我們要注意的是!!! 其實這次中美貿易戰從中國外移的廠商，不只只有台商!!! 中國的廠商也同時在快速遷移。

What we should pay attention to is!!! In fact, this time the CHINA-U.S. trade war has moved away from China’s manufacturers, not just Taiwanese Companies!!! Chinese manufacturers are also moving rapidly.

 

以下我來展示幾個案例

A: A案例是中國上市公司，主業是做按摩器材，該器材在全球的市佔率也是名列前茅。去年年初實地考察後，年中已與我們簽約6000 平方米的廠房面積作為生產包袋使用! 而目前的廠房面積也已經擴展到10,000平方米!!! 並提出要再擴廠的需求。

Let me show a some cases below

A: Case A is a large company in China, whose main business is massage equipment, and its market share in the world is also among the highest. After a field visit at the beginning of last year, a factory area of 6,000 square meters has been signed with us in the middle of the year to be used as production bags! And the current factory area has also been expanded to 10,000 square meters!!!

 

B. 緯創的案例: 2019年緯創有考慮過把中國的產能移轉到蘇比克這一塊，當時也跟我們溝通若擴大規模的話，其供應商等過來後，緯創既有的廠房空間不夠，希望我們能提供部分廠房來。最後緯創選擇墨西哥廠

B. Wistron's case: Wistron has considered relocating China's production capacity to Subic in 2019. At that time, they also communicated with us that if its supplier had expanded Wistron's existing plant, there would not be enough space, I hope we can provide some factories. Finally, Wistron chose Mexico.

 

C.  包袋產業: 福助貿易(工具包)跟FTI(行李箱) 都是因應中美貿易而來。其中福助也持續再擴廠當中目前也承租了8000平方米 雇用了約600名員工

Bag industry: Jung Fung Trade (tool bag) and FTI (luggage) are both in response to Sino-US trade. Among them, Jung Fung has continued to expand the factory and currently leases 8,000 square meters and employs about 600 employees.

 

D. 建準 (工業用風扇): 已經在距離約蘇比克20公里的工業區買了13公頃的土地，預計今年雨季過後開始建造廠房---附近的台廠有邦特(醫療器材)、FTI (行李箱)、帝碩(化工品)、PCM (棒球手套廠預定地)、岳豐(電線線材)

 

Sunon (industrial fan): I have bought 13 hectares of land in an industrial area about 20 kilometers away from Subic, and it is planned to start the construction after the rainy season this year. Nearby Taiwan factories include Bonte (medical equipment), FTI (Luggage), Di Shuo (chemical products), PCM (baseball glove factory scheduled place), Yue Feng (wire and wire)

 

在這裡我們可以看到。中美貿易戰後過來的廠商，其產品不在是過往我們認為低附加價值的產品。而是高單價的產品，因為這一類的產品從中國出口到美國時所需付的金額更大。妳們可以見到高級包袋廠、電子行業的移轉。也可以看見因為供應鏈的不全，當下菲律賓只能做最後的組裝加工動作。而更前期工序還是需要依賴中國的供應商。

 

Here we can see that. Manufacturers' goods arriving after the Sino-US trade war are not products that we thought were of low value added. This is a commodity with a high unit price, as this type of product has to cost more if it is shipped from China to the United States. Notice the transition of high-end bags factory and electronics industry. It can also be seen that, due to the incomplete supply chain, the Philippines can only perform final assembly and processing activities. More advanced processes still need to be relied on by Chinese suppliers.

 

4. 台商投資菲律賓前後所會遇到的問題

Problems encountered by Taiwanese businessmen before and after investing in the Philippines

台商從中國移往其他東協國家投資會注重哪幾個問題

1. 成本---不論是廠房租金成本、物流成本、水電成本與勞工成本這都是基本考量

   1. 廠房租金成本在東南亞國家中算是較高的。(目前免稅區的租金約3.5-6USD 美金/SQM)

   2. 物流上，菲律賓因進出口的貨量相差十分懸殊，一百櫃中進口的櫃子可能佔80%，而只有20%的櫃子出口，這導致該國的物流費用上有一個貨櫃不平衡費用。

   3. 水電成本也是一大被詬病的成本，菲律賓的電價收費為亞洲屬一屬二高，這導致用電量的大廠對於投資菲律賓會有所顧慮

   4. 勞工成本: 勞工充足而每年約成長5%，人民可用英語溝通這是菲律賓的一大優勢

2. 供應鏈的充足與否!!!--> 老實說供應鏈的一點，是菲律賓的一大弱勢，過去菲律賓以貿易為大宗，自身對於工業上的發展規劃並無

3. 治安

4. 基本設施

 

What issues will Taiwan businessmen pay attention to when moving from China to other ASEAN countries?

A. Cost---whether it is factory rent cost, logistics cost, water and electricity cost and labor cost, this is the basic consideration

A. The rental cost of factory buildings is relatively high among Southeast Asian countries. (Currently, the rent in the free zone is about 3.5-6USD/SQM)

B. In terms of logistics, there is a significant gap in the number of imports and exports in the Philippines. Imported cabinets may account for 80% of the 100 cabinets, while only 20% of the cabinets are exported. This leads to a container imbalance in the country’s logistics costs. .

C. The cost of water and electricity is also a major criticized cost. The electricity price in the Philippines is one of the highest in Asia, which causes major energy-consumption companies to have concerns about investing in the Philippines.

D. Labor cost: The labor force is sufficient and the annual growth rate is about 5%. People can communicate in English. This is a major advantage of the Philippines.

B. Adequacy of the supply chain!!!--> Honestly, one point of the supply chain is a major weakness in the Philippines. In the past, the Philippines used trade as a bulk, and it had no industrial development plans.

C. Public security

D. Basic facilities

 

台商從中國移往菲律賓投資後會需要協助的方面

第一開公司的方面!!! 若是在菲律賓幾個特區裡，是允許100%外國人持有來開公司，但特區的土地是無法買賣的!!!最多就只能50%的使用權! 台灣廠商普遍來講比較偏愛永久的土地使用，畢竟當一個國家經濟成長後，土地的價格也會水漲船高，所以可以看到新進的投資廠商因為這個考量而選擇其他的免稅區設廠 (60%菲國股份，40%的外國持股。但這後續操作手法，我就不在這邊細述說明了)

Where do Taiwanese businessmen need assistance after moving from China to the Philippines

The first aspect of starting a company!!! If it is in several special zones in the Philippines, 100% foreigners are allowed to hold a company to start, but the land in the special zone cannot be bought and sold!!! Just 50% of the right to use it! Taiwanese manufacturers generally prefer permanent land use. After all, when a country’s economy grows, the price of the land will appreciate, so you can see that new companies investing have chosen to set up factories in other free zones because of this consideration. (60% Philippine shares, 40% foreign ownership. But this follow-up operation method, I will not elaborate here)

 

5.疫情對投資者的影響 與最後的建議

 

5. Impact of the epidemic on investors and final recommendations

 

疫情的當下，菲律賓試著藉由封城來控制疫情的傳播，但目前看來每日新增病情數絲毫沒有減少。而人民也需要工作來獲得新增。 對於今年我們認為一股拉力拉住投資者謹慎投資 (疫情) 一股推力，推著廠商離開中國(中美貿易戰)在這拉與推的情況下，我們認為投資者會更謹慎的考量(花的時間會更多)，畢竟一個投資案的金額都不小!!! 但部分產能從中國轉移到其他國家是勢不可擋的。

During the time of the outbreak, the Philippines tried to control the spread of the epidemic by closing the regions, but at present it seems that the number of new cases every day has not decreased. And the people also need work to get new additions. For this year, we believe that a rally is holding investors cautiously investing (the epidemic), and a thrust is pushing manufacturers to leave China (China-US trade war). In this pull and push situation, we think investors will be more cautious in considering ( It will take more time), after all, the amount of an investment case is not small!!! But it is unstoppable to transfer part of the production capacity from China to other countries.

 

最後給的建議: 

 

1. 菲律賓政府的行政效率。申辯公司的時間還是過長。 即便是蘇比克這種特區也是要2-3個月才能把公司設置好

2. 稅收的改革，不要動到經濟特區畢竟這是吸引外資投資的一大誘因

(確實的把稅收到才是所要做的)

3. 投資人都誤以為菲律賓的稅收在20-30%，連其他國家在經濟會議上也說菲律賓的投資的稅率在20-30%!!! 但因中美貿易戰遷移過來的廠商基本上都是要出口歐美的廠商，所以他們會選擇在免稅區里設置工廠。 此時稅率只有5%而已。 這是菲律賓的一個大優勢!!! 但都沒有被大力推廣。這是一個很可惜的地方

4. 治安問題的誤解要透過媒體等來修正

5. 極少罷工、與工會勢力薄弱這點也要多加宣傳

 

Last advice:

 

1. The administrative efficiency of the Philippine government. The time to defend the company is still too long. Even a special zone like Subic will take 2-3 months to set up the company

2. Tax reform, do not switch to special economic zones. After all, this is a big incentive to attract foreign investment

(It is really necessary to get the tax to it)

3. Investors mistakenly believe that the tax in the Philippines is 20-30%, and even other countries said at the economic conference that the tax rate of the investment in the Philippines is 20-30%!!! But the companies that have migrated due to the Sino-US trade war are basically They are all exported to European and American manufacturers, so they will choose to set up factories in the free zone. At this time the tax rate is only 5%. This is a big advantage of the Philippines!!! But none have been promoted vigorously. This is a pity place

4. Misunderstanding of public security issues should be corrected through the media, etc.

5. The fact that there are very few strikes and weak union forces must be publicized.