Garments manufacturers are eyeing to increase to $1 billion to $1.2 billion their exports this year, slightly higher than the $900 million registered in 2021.
The Foreign Buyers Association of the Philippines (FOBAP) said the local garments industry sees incremental $200 million to $300 million receipts as it benefits from additional orders unserved by competitors Vietnam which is under total lockdown and Myanmar, whose currency has devalued by 60 percent.
However, FOBAP said local garments exports though continue to face headwinds brought about by the unprecedented supply chain disruptions in the United States, its biggest market as well as factory closures and quarantine rules around Asia and Europe.
Exporters have been experiencing shipping delivery delays linked to the pandemic and the price gouging from freight carriers that results to huge backlogs at the ports.
FOBAP said all these have led to empty clothing shelves, outdated fashion items, price increases of the products, lesser number of shoppers, store closures and termination of workers.
In turn, these translate to lesser apparel production in, and purchase orders from, the Philippines.
For a moderate-sized garment business player in the field, the Philippines will be one of the least able to withstand these challenges, FOBAP said.
FOBAP has sought the Philippine government’s assistance and intervention for the industry.
FOBAP has supported the call of the American Apparel and Footwear Association (AAFA) to the Biden administration to look at using other tools beyond tariff as trade leverage.
Also it welcomes the introduction of the Ocean Shipping Reform Act of 2021 in the US, which among other things bans carriers from declining all cargo bookings for exports.
