The Department of Trade and Industry (DTI) expressed hope the current administration will be able to reverse the decline in the Philippines’ economic complexity index – or ECI, a measure of how diversified and complex the export basket of a country – through the Tatak Pinoy Act.
In his speech at the launch of the Tatak Pinoy Act in Manila yesterday, DTI Secretary Alfredo Pascual said this law goes beyond branding of “Made in the Philippines” but is an integral part of the country’s industrial policy which seeks to propel Philippine enterprises toward producing diverse, sophisticated, high-quality products and services.
Pascual cited the Atlas Economic Complexity report in 2021 which placed the Philippines at 33rd globally with an ECI score of 0.76, placing It fourth in Southeast Asia behind Singapore (5th), Thailand (23rd), and Malaysia (28th) but ahead of Vietnam (61st) and Indonesia (64th).
“That was 2021. We are now in 2024. In the three years that have passed, I’m sure you will see significant shifts further in the ranking,” Pascual said.
He said as the Philippines’ strengths lie notably in hi-tech exports, particularly semiconductors and electronics, electrical machinery, and other ICT goods, sustained economic advancement hinges on diversifying into more complex product categories.
Pascual said between 2006 and 2021, the Philippines has only ventured into 30 new export products contributing to $41 to GDP per capita.
In contrast, Vietnam has ventured into 41 new products, boosting its GDP per capita by almost $1,500.
Additionally, he said, Philippine export volume of $74 billion pales in comparison to its regional peers: Indonesia, $231 billion; Thailand, $266 billion, and Vietnam , $355 billion.
“There was a big increase during the period 2011 to 2016 that was the administration that brought that about, and then the next administration suffered a decline. Again, we hope to be able to shift the trend upward during the current administration,” Pascual said.
He added: “This stark contrast highlights the urgent need for a more robust approach to enhance the global competitiveness of our local industries and attract more export-oriented high-tech manufacturing companies to make the Philippines their production hub.”
The Tatak Pinoy Act was signed last February 26.
