Philippine garments exporters have clinched additional $500 million or P24 billion orders this year and have vowed to take advantage of the diversification of sourcing of key markets as these countries gear for recovery.
Robert Young, trustee at the Philippine Exporters Confederation Inc., said at the group’s E-Forum Series yesterday buyers, mostly American fashion brands for basic babies’ playwear, men’s athletic and sporting outfit, ladies’ dresses and intimate apparel have shifted their orders to the Philippines.
Young said this translates to additional foreign revenue earnings, significant number of employment and livelihood which will hopefully snowball to related industries such as transportation, packaging, food and other sectors.
Young said exporters have noted major developments that garments buyers and exporters are monitoring.
The International Labor Organization (ILO) in October 2020 said the Philippines’ garment industry has taken a big hit from the pandemic, cutting exports by almost 40 percent and putting the livelihoods of over 600,000 Filipinos “at-risk.”
Citing a recent Nikkei survey, Young said more than 80 percent of companies with factories in Japan have begun diversifying their supply chains as the pandemic and other disruptions highlight the risks posed by highly streamlined production processes.
He said survey respondents cited various reasons – from curbing dependence on any one single market and a break from past practice that included increasing inventory and procuring more supplies for production facilities in their local countries.
Another development exporters are watching is the projection that China and Asia are expected to fill the bulk of surging US demand for goods in 2021 as global trade rebounds from this pandemic.
Citing the World Trade Organization estimates, global exports are expected to grow by 8.4 percent this year, with North America driving demand in merchandise trade. US imports are seen to rise by 11.4 percent after declining 6.1 percent last year.
Exporters also cited the political tension in Myanmar following a military takeover have given local garments and textile industry a breather from the adverse effects of the pandemic, as they are able to fill in for those orders.
Young said the vaccine push in the Philippines will also help improve market confidence in the country.
