PHL’s apparel and textile exports are expected to reach $1.5 billion in 22
DESPITE lingering global challenges aggravated by the Russia-Ukraine conflict, the country’s apparel and textile exports this year could nearly halve to $1.5 billion as the industry is keen to close supply gaps. supply by other producers.
In a statement, the Overseas Buyers Association of the Philippines (Fobap) said the domestic apparel, textile and apparel industry had already received bulk orders from countries that cannot be serviced by the Vietnam, China, India and Bangladesh due to “minimum order quantity requirement”.
“We’re gonna hit it [target] easily because we have all the orders at hand,” said Fobap Chairman Robert Young, who is also a director of the Philippine Exporters Confederation Inc. (Philexport) for the textile, yarn and fabric sector.
“We can now predict that the $1.5 billion [exports volume] for the end of 2022, it’s just a walk in the park,” Young added.
Young said the industry would be able to fulfill its orders despite ongoing supply chain issues such as port congestion.
“We have the reputation of being number two in all of Asia and exporting garments and garments, therefore, we are always seen as an alternative for the garment production of these overseas buyers,” he said. he declares.
Still, Young admitted the Russia-Ukraine crisis will be a challenge to meet the industry’s export target this year due to trade sanctions against Russia, such as the country’s apparel expansion.
Young said the country’s apparel, textiles and apparel shipments last year reached $1.052 billion, including apparel and apparel of $758 million, and textiles, $294 million.
“There were actually $200 million in finished goods ready to ship by the end of 2021, but they’ve been sitting in port due to congestion. These goods only left the port terminal last February,” he said.
“Fobap, six months ago, had a projection that it would be $1.2 billion. [exports volume for 2021] so we hit it. We are very happy for the Philippine economy that the garment sector has improved from the previous year, you have really seen a percentage increase despite the pandemic,” he added.
Young explained that most or about 80% of the country’s textile and apparel exports go to the United States, while 20% goes to the European Union, Australia, Canada and countries in the EU. ASEAN.
“Our aggressiveness [in marketing] is really there, we work 24/7, we are looking for other orders that other countries do not accept due to the minimum [volume] requirement,” he said.
Young added that some policy measures that could be implemented by the next administration could help meet the export target of $1.5 billion this year.
“A serious reflection on [revival of] nuclear power plant will finally solve our cost of electricity, energy problem, this is number one. Second, wages need to be re-examined and re-examined in some way,” he said.
“There should also be a subsidy on the export tax deduction, because that will somehow encourage foreign investors to come in. The CREATE [Corporate Recovery and Tax Incentives for Enterprises] the law is there, but it is not enough. We need to create additional functionality to attract these foreign investors,” he added.