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How the Philippines is Capturing China's Lost Manufacturing

Breaking Ground PH

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Check out the Full Length Business documentary here: Why Smart Money is Leaving Manila for This...

The global supply chain is fracturing, and multinational corporations are aggressively looking for alternatives to China. In this episode of Breaking Ground, I sit down with Rafael De Mesa, President and CEO of Aboitiz Economic Estates, to break down exactly where the smart money is moving.
We discuss the master plan behind Lima Estate—a sprawling, fully integrated economic city designed to house 75,000 workers. Rafael reveals the realities of the "China Plus One Plus One" strategy, how the Philippines is competing with Vietnam for manufacturing dominance, and how Aboitiz is engineering a blueprint to stop the country's massive brain drain. If you want to understand the macroeconomic shift happening in Southeast Asia and how massive infrastructure projects are actively decentralizing Metro Manila, this is the episode.

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🕒 CHAPTERS / TIMESTAMPS:
00:00 - The Macro Threat & The China Exodus
00:01:16 - Returning to the Philippines & Real Estate Booms
00:02:49 - Inside the Aboitiz Family Constitution & Operations
00:05:40 - Why Traditional Economic Zones Fail in the Philippines
00:10:34 - The "China Plus One Plus One" Strategy Explained
00:13:11 - Why Manufacturing Beats the Service Industry for GDP
00:14:37 - Bringing a University Inside an Industrial City
00:17:39 - The Shenzhen Benchmark & Massive Scale
00:19:30 - Investigating Lima Estate (Documentary Trailer)
00:20:13 - The Vietnam Benchmark & Energy Costs
00:22:34 - Renewable Energy & The Private Power Grid
00:26:10 - The Real Advantage of Philippine Labor
00:29:28 - Building a Private Smart City for 75,000 People
00:35:00 - The Plan to Decentralize Metro Manila
00:37:36 - Can the Middle Class Actually Afford to Live Here?
00:44:49 - Nation Building: Stopping the OFW Brain Drain

📈 ABOUT THIS EPISODE:
Discover why major manufacturers like Yamaha and Epson are setting up massive operations south of Metro Manila. We cover Philippine real estate investment, the transition from BPOs to manufacturing, foreign direct investment (FDI) in Southeast Asia, and the infrastructure required to build a sustainable middle class.

#MacroEconomics #PhilippineRealEstate #Investing #SupplyChain #LimaEstate #Aboitiz #BreakingGround #EmergingMarkets #BusinessDocumentary

20 Comments

@sawasawauy 3 months ago

To Filipinos watching this, I am a Korean living in the Philippines and I really want this country to be competitive. You see, I hear a lot of stories about Filipinos being racially discriminated in Korea. But I think a lot of people don't realize that we (Koreans living in the Philippines) also get discriminated in Korea. Whenever some Koreans find out that I live in the Philippines, they immediately assume that I come from a poorly educated family or that we have a low socioeconomic status. They look down on us simply because we chose to live here. It’s painful because I truly love living in the Philippines, yet I can’t completely ignore the realities that contribute to these perceptions. That is why I hope Filipinos continue to demand better governance and make informed decisions. Personally, I am not a supporter of the Duterte family, but as a foreigner, I have no say in Philippine elections. During the last election, I hoped that Leni Robredo would win, but all I could do was watch the results unfold on television with disappointment. My hope is that Filipinos become more discerning voters and elect leaders who are competent, principled, and committed to the country's long-term development. The Philippines has enormous potential, but it needs a government that works effectively with the private sector, encourages investment, creates opportunities, and delivers real progress for its people.

@MichaelVincentCruz-r7l1g 3 months ago

What makes this discussion so compelling is how clearly the company reads the current geopolitical landscape and of course understands the global economy. The 'China plus one plus one' strategy the guest mentioned is highly realistic. Instead of trying to outcompete standard labor-heavy regions, positioning the Philippines as a high-security, integrated diversification hub is exactly how we win in the long run. Master-planned zones like LIMA Estate are doing massive heavy lifting for provincial employment.

@aceesmeraldaPH 3 months ago (edited)

More interviews like this, a positive one, John. Past interviews were depressing, so I have to turn them into sources of inspiration and lessons learned.

@wasabikun 3 months ago

Very proud of having been working with the Aboitiz family for almost 10 years. Of all conglomerates in the Philippines, they are the most sensitive to innovation, technology, and IT.

@manilamartin1001 3 months ago

I came back from the USA. Started buying in 2007 Ayala condos. I couldn't be happier. There are lots of opportunities in the Philippines. Most of the opportunities are here because very few new types of bursinesses are being developed. I love seeing how others are exploring this country for opportunity.

@NPRNTVChannel 3 months ago

I’ve heard the name Aboitez since my college days in 60s in Cebu City. They have their shipping lines main office in the city. They even have a vacation resort in Camiguin where my parent’s originated.

@LightmanTropic 3 months ago

I like ur last few questions. Quite very bold to question big players on the realistic economic landscape in the PH.
The more you know the country, the more you hate less about it. I'm looking forward for more types of insightful content like this beyond
the real estate and manufacturing industry!

@kravlonarussia990 3 months ago

I love how you position your questions. Straight forward, simple.

@hauntedandAloneFB 3 months ago

We live in Lima estates it's a incredible place. We moved here from illocoSur . Im from the US

@DDSAssemble 3 months ago (edited)

wow, this is great finally a visionary for improving the lives of Filipinos thru manufacturing, not just only creating malls

@AveryPatriots_467 3 months ago

I love the Philippines 🇵🇭 . This is my beautiful country , I will not settled to any other land . I stay here ,make myself prosper and my family. God bless the Philippines 🇵🇭 and all expat and half filipinos who choose this country to prosper and make their living.

@MC-kg4vu 3 months ago

I really appreciate John Dang for asking the question that many Filipinos are thinking about but rarely get the chance to ask: how can ordinary Filipinos afford housing in places like LIMA Estate?
What really stood out to me was the discussion about housing affordability. Only about 5% of the 75,000 people working in LIMA Estate actually live there. That says a lot about the challenges ordinary workers face when it comes to owning or even renting a home near where they work. I respect John for bringing up a concern that affects everyday Filipinos, not just investors or the wealthy. These are the kinds of questions that need to be asked if we want to build communities that are truly inclusive. Thank you for using your platform to have these conversations. I hope you continue making content like this and asking the tough questions that matter to ordinary Filipinos. More power to you!

@janew99 3 months ago

I hope Lima Estate does well and support their business concept which supports their employees, raise the socio-economic status to a higher living.

@BenAfrica777 3 months ago

John , you ask great questions!!! Thanks, this episode is very inspiring!!!

@damienreyes871 3 months ago

Nice one malaking tulong ito sa Batangas.

@podoroflight5766 3 months ago

Adding a railroad from batangas port a stop in lima estates nuvali alabang to port of manila makes the cherry on top. It will make the easiest commute.

@LarryfromPH 3 months ago (edited)

John definitely learned a lot from an Aboitiz who's family had been running companies in PH for quite some time and had been able to navigate government policies on forming companies and businesses in PH. This family definitely knew PH challenges and limitations and able to accept them and understand where PH should position itself in the global economy.

@benny341vorques9 3 months ago

This is what I've been wishing for the Philippines that we start on making products for ourselves instead of relying on other countries for products that we need. We should really start focusing on our own needs that we think will really benefit our country and Filipinos in general.

@KOdi766 1 month ago

My dad told me the Patriach of the Aboitiz family was close to my grandfather Benjamin who also spoke spanish fluently.

@HieuNguyen-eu1hw 3 months ago

I like the way the MC creates questions for the guests. Very multiple angles to understand the problem. However, the answer isn't clear for some questions because they seem too difficult for the guest to find a good answer.