BOI OKs furniture export project in Mandaue City

The Board of Investments (BOI) will be providing its package of incentives to a P9.13-million furniture export project in Mandaue City which is seen as a big boost to the country’s positioning as a global hub for furniture.

The BOI said the project, under Maison Galuchat Inc., will manufacture furniture and accessories and export 100 percent of its production to Asia, Europe and the US.

The company is initially employing 53 people and plans to expand its personnel to 120 by 2022.

Under the 2017-2019 Investments Priorities Plan, production and manufacture of export products is a business activity eligible for BOI registration and is qualified for fiscal and non-fiscal incentives.

BOI managing head Ceferino Rodolfo said Maison’s project would further strengthen the country’s positioning as a global hub for furniture manufacturing.

The Chamber of Furniture Industries of the Philippines Inc. (CFIP), with the guidance of the BOI, has crafted the country’s furniture roadmap which envisions the Philippines as a global hub for furniture by 2030.

To meet this target, the BOI has been supporting the local furniture industry in stepping up efforts to make their products even more competitive in the international market.

CFIP said the main strength of the local industry is on design, especially the parts and pieces that uses sustainable materials or indigenous components such as abaca, bamboo, coco coir, buri and pina fiber.

According to the BOI, the Philippines’ share in the total value of world production of furniture remains small, leaving plenty of room for the industry to grow.

The industry intends to increase its share in the global market to two percent this year.

Under the roadmap, the plan is for the country’s furniture exports to rise seven percent per export market.

The BOI said furniture and fixture exports have steadily increased in the last six years, from $131.87 million in 2011 to $202.14 million in 2016.

“Already, a market abroad exists for Philippine-made furniture and designers, like Kenneth Cobonpue, who have made strides by drawing a prestigious list of international customers. Trade shows regularly held in Manila and Cebu City have attracted a considerable number of foreign buyers who sell the merchandise to prominent customers that include major hotels located in key destinations,” the BOI said.