Garments, hard goods makers trim export targets

Philippine garments and hard goods manufacturers have slashed their projected export earnings growth to 15 to 20 percent this year from 30 percent due to the damage caused by Super Typhoon Yolanda to factories in Eastern Visayas.

“There are companies that are sticking to their individual (projected) increase in percentage (growth rates). However, all in all, I think it is very safe to say that about 15 to 20 percent will still be attained,” Foreign Buyers Association of the Philippines president Robert Young said in a statement from the Philippine Exporters Confederation, Inc.

He said the group cut its export earnings projection this year as Yolanda, which hit Eastern Visayas in November, destroyed sewing and handicraft factories and affected garment subcontractors and material source suppliers.

Latest data from the Philippine Statistics Authority showed garments exports for the first 11 months of last year stood at $1.441 billion.

Earnings from outbound shipments of textiles meanwhile amounted to $160.916 million as of end-November.

The group expects the growth in export earnings this year to be supported by the improving economic growth of the US, the country’s major market.

“Plus the fact that the EU GSP ( European Union Generalized Scheme of Preferences) Plus was applied already officially by DTI ( Department of Trade and Industry)... So all these factors will add up to the improvement of the Philippine merchandise exports,” Young said.

The DTI submitted in December its application to the EU GSP+, a scheme which will allow more goods to enter the bloc at zero duty.

The application will be subject to review and assessment within 10 months.

Young said qualifying for the EU GSP+ will not only help increase exports but also create more jobs.

He added that the 77-percent wage increase for garment factory workers in Bangladesh is seen to support the growth of the local sector.