Foreign buyers back revival of local garments industry

The Foreign Buyers Association of the Philippines (FOBAP) is supporting government efforts to revive the local garments industry, a development which it expects to boost export revenues of its members.

Garments currently comprise 70 percent of the exports revenues of FOBAP members, while housewares, giftwares, footwear and bags represent the remaining 30 percent.

“With the revival of the garments sector, the revenue mix dramatically will go back to the old 90 percent-10 percent level,” FOBAP president Robert Young said in a report to the Philippine Exporters Confederation Inc.

Young said garments sector players are meeting every week with the Department of Trade and Industry (DTI) and Board of Investments to craft the garments and textiles industry roadmap.

“We are in consultation with the DOLE (Department of Labor and Employment) and assessing the state of the industry. We are conducting workshops for wouldbe players and social compliance and corporate social responsibility roadshow for foreign buyers association,” he said.

The revival of the garments industry is one of the DTI’s priorities at present.

Garments has been included among the 12 industries that will be prioritized and developed by the DTI under the country’s inclusive innovation industrial strategy or i3s.

According to Young, obtaining a free trade agreement (FTA) with the US will also be crucial to efforts of reviving the local garments industry.

He said concerned agencies and groups in the sector are lobbying for the approval of the FTA.

“We see that this will be the only chance to revive the garment industry because we will be more attractive to the buyers in terms of elimination of import taxes, import duties that they have to pay for the incoming garments as compared to the other countries,” Young said.