Quo vadis: Local textile industry (Part 1)
What, one may ask, is happening to our local textile industry? Is it dead? Is it dying? It is being resurrected – or to use a more popular word – is it being revived by the government and the major stakeholders?
All of sudden our textile industry is attracting more attention. Why so? Because the current US-China trade war opens immense trade opportunities for neighboring countries of China like the Philippines. As we very well know, garment exports is dependent on our local textile industry.
We are blessed that there are still individuals/trade associations that are pursuing a persistent/continuous campaign to bring back the local textile industry to its former glory. I am referring to Robert M. Young, Chairman-President of the Foreign Buyers Association of the Philippines (FOBAP). Robert M. Young is also a Trustee of Philexport headed by Sergio “Jun” Ortiz who has always been very active and passionate when it comes to export issues and export promotion matters. When Jun Ortiz is not around, Ms. Leni Abella the approachable and dependable Executive Vice President of Philexport, who has long been with Philexport is at the helm. Philexport is a federation of the different export sectors in our country including the textile industry.
I can still remember the golden years when FOBAP cornered the bulk of export orders of garments/ textile accessories in the country.
Yes, our country was oozing with export orders (within the then quota allocation limitations) because of the aggressiveness of the members of FOBAP many of whom are foreign buying agents who proudly promote and market our country by having world-famous brands (like Banana Republic, GAP, Ann Taylor, Talbots and Warner Brothers, to name a few) exported from the Philippines. Thus, the “made in the Philippines” garment exports were sold everywhere abroad. FOBAP was a name identified with our flourishing garment export then since most of the FOBAP members happened to be garment exporters. Those times when FOBAP was flying high are now just memories fondly to be remembered.
Today, it is saddening to note that the situation of our garment export has deteriorated drastically. It is unfortunate indeed that the current US-China trade war has benefited our garment exports only in a very minimal scale. Because the Philippines, unlike India, Vietnam and other Asian countries is not ready to accept bulk export orders. Why? Because, we lack competent textile manufacturers and locally milled textile plus required accessories.
The net effect of our lack of textile manufacturers during the ongoing USChina trade war is very discouraging because the China garment factories all transferred their orders to Vietnam, India and other countries except the Philippines. We were skipped by China! With the pathetic situation of our local textile industry vis-à-vis other countries, can we blame China for skipping our country?
Let me share with you some background information about the textile industry (Reference: Report titled Revising the Philippines Textile Industry prepared and presented by Robert M. Young, trustee of the Textile sector of Philexport):
• Do you know that during the ’60s the Philippines was having 80% of its textile imported;
Do you know that during the Mar• cos era the government introduced the Textile Modernization Program and the following companies put up textile mills:
1. Universal Textile – UTEX
2. Lirag Textile Mills
3. Central Textile
4. Imperial Textile Mills – ITM
5. Litton Mills
6. Alpha Textile
7. Redson Mills
8. Ramitex
9. Floro Knitting Mills
10. General Textile – Gentex
11. Filipinas Synthetic–Filsyn
12. Oxford Textiles
13. Eastern Textiles
14. Fifteen (15) other small mills for towels, placemat, rugs. big textile mills aforemen•The tioned then had contributed to the Philippine economy approximately US$3 billion and employed about 150,000 (direct labor) and 350,000 (indirect labor) Filipinos;
Do you know that the export of gar• ments reached its peak during the early ’80s. Due to the tax-free importation, the garment exporters then were encouraged to import all their textile requirements rather than use local textile/fabric;
• Do you know that the causes of the downfall of textile industry then were;
1. High power cost
2. High labor cost
3. Low workers efficiency
4. Outdated technology
5. High cost of financing Poor infrastructure/high logis6. tical cost Insufficient government sup7. port/subsidy
8. Rampant smuggling
9. Highly dependence on import
10. Higher VAT
• Do you know that many Filipinos do not know that we have the so-called the Philippine Tropical Fabric Law (Republic Act 9242 enacted last 2003) entitled “An Act prescribing the use of the Philippine tropical fabrics for uniforms of public officials and employees and for other purposes;
(To be continued) Have a joyful day! (For comments/ reactions please send to Ms. Villafuerte’s email: villafuerte_nelly@ yahoo.com).