Philippines’ textile and garment industry to be revitalised soon!

 

While sketching out  a roadmap for its textile and apparel industry for the period 2020-2029, the Philippines Government aims to incorporate an integrated path for the industry.

Devised by Government’s Board of investments, the layout includes a prerequisite to increase capital investments as well as textile production across the country’s length and breadth.

Also, fiscal incentives in the form of reduced value-added tax and reduced power rates will provide crucial support.

A survey reports that the country’s commercial and industrial electricity rates remain higher as compared to those of Indonesia, Malaysia, Thailand and Vietnam. Consequently, the firms with their manufacturing base in Philippines have to face this issue.

Strategies for garment industry include taking advantage of the free trade agreements, and simultaneously negotiating for more liberal rules of origin requirement with the country’s trading partners.

With respect to the textile industry, the strategies proposed in the roadmap consist of investing in R&D for product development and marketing, in addition to linking regional/localised supply chains to relate the separately located clusters.

This roadmap will bridge the gap between the Government and private industries of the segment with a dedicated trade office thereby prohibiting any kind of second-hand apparel imports from North-America and Europe.

After illegally importing them for the purpose of charity, these clothes are then sold with a hike of 10-20 per cent in their actual retail price.

Fact check: Philippines could not grab the space in garment export industry created by US-China trade war, despite Government’ plans to boost indigenous manufacturing capacities

 

 

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