President of the Korean Chamber of Commerce of the Philippines Ho Ik Lee says that Korean companies operating in the Philippines are packing up and moving to Vietnam, PhilStar Global reported Wednesday.
“We like to invest here in the manufacturing side but unfortunately, many of the Korean companies located here (are) leaving Philippines and moving to Vietnam,” Lee said.
“When I asked them why they are leaving the Philippines, (they said it’s because) the cost is too high. It’s almost three times higher than Vietnam’s. This higher cost is killing manufacturing and that is why the Korean companies are leaving and moving to Vietnam,” he said.
“One of the reasons why I think it is three times higher than Vietnam is infrastructure, because logistics cost is too high here and the government, BOC (Bureau of Customs), and the others are also another point,” he said.
“Once they invest here, what are the incentives? So they are leaving now. We’re not saying open your country, all of it. We just ask your country (to be the) same level as other Asian countries like Indonesia and Vietnam,” Lee added.
“Your domestic market is really good so the Korean investors want to invest in the domestic market, not only in the PEZA. But to invest in the domestic market, the government rules and regulations are tight and some limitations of the foreign share and the foreign equity. Give some more incentives,” he said.