US apparel, BPO firms keen on expanding here
American apparel, footwear and BPO firms are expanding in the Philippines with eyes focused on the domestic market because of the huge domestic and growing middle class, according to Trade and Industry Secretary Ramon M. Lopez.
The trade chief attended the recent Philippine Investment Forum in New York where 85 American business executives attended the event.
In a roundtable meeting with the members American Apparel and Footwear Association (AAFA), they discussed potential relocation and expansion of their manufacturing facilities in the Philippines.
He also encouraged member companies, which include Tellas Limited (formerly Luenthai USA), Under Armour Inc., Michael Kors (USA) Inc., Ralph Lauren Corporation, Coach Inc., and the Ascena Retail Group Inc., (makers of Ann Taylor, Loft, Lane Bryant, Dressbarn, and Catherines) to take advantage of the extended duty-free treatment to imports of travel goods (including luggage, handbags, backpacks, tote bags) under the Generalized System of Preferences (GSP) Program.
DTI has also lobbied for the inclusion of footwear in the US-GSP program during a recent meeting with US Trade Representative Barbara Weisel.
The Philippine Trade and Investment Center in New York also noted that AAFA members and the brands they carry have increased their presence in the Philippines due to huge domestic market, rapid economic growth and expanding middle class.
Lopez also met with the officials of a research-centric organization, the US-Philippines Society, for a collaborative project to streamline the country’s revenue-generating operations, to respond to internal and external security concerns, and to mitigate the impact of global warming on vulnerable sectors.
Shearwater CFO and COO Tom Kendrot joined the series of meetings with Sec. Lopez to confirm Shearwater’s expansion through its third operation center in the Philippines, opening in 2018 in Iloilo City.
Shearwater is a US clinical solutions provider, which has clinical process outsourcing operations in Taguig City and Cebu City. Such expansion is expected to bring in US$ 7 million worth of investments and increase the company’s labor footprint in the country to 3,000.
In his speech, Lopez highlighted the sound macroeconomic fundamentals of the country, aiming a 7-8 percent increase in GDP annually and reduce poverty from 21.6 percent in 2015 to 14 percent by 2022.
The trade chief also shared the government’s focus on infrastructure development with US$ 160 billion worth of projects to directly address investors’ concerns on power supply, affordable telecommunications, and efficient transport of goods and services.
At the sidelines of the Forum, Lopez and DTI Undersecretary and Chief of Staff Atty. Rowel Barba also met with different associations and business executives to seek opportunities for the manufacturing industries and to continue the government’s engagement with US business stakeholders.
“The Philippines continues to strengthen business collaboration with investors and multinational corporations based in the United States,” he said.(BCM)