The local garments industry expects exports to jump 50 percent in 2023 to $1.5 billion from $1 billion in 2022 amid the emerging global developments, the Foreign Buyers Association of the Philippines said over the weekend.
“The prospect is that there will be headways in the garments industry in 2023. All in all, our prayer is to reach the $1.5-billion target by yearend,” said FOBAP president Robert Young, who is also the Philippine Exporters Confederation Inc. trustee for textile, yarn and fabric sector.
He said among the headways expected this year are the transfer of small, yet multitude projects from Vietnam and China to the Philippines.
“They [Vietnam and China] are more geared for bigger quantities due to their robotics and automation system,” Young said.
He said another factor is the ongoing US campaign of “anything but China” that is gaining momentum. Production is now spread among ASEAN countries including Philippines.
The political issues in Myanmar are also expected to benefit Philippine garment stakeholders, as the apparel orders shifted to other Southeast Asian countries.
The local industry failed to hit the target sales of $1.5 billion in 2022 because of headwinds such as political strife and lackluster demand on a global scale.
Data showed that in 2023, the Philippines already received new orders worth $6.48 million from Japan’s Nichiun Co. Ltd. of Konoike Group—a breakthrough in bolstering the bilateral relations.
Young said the Konoike Group indicated the orders during the Philippines-Japan business matching at the sidelines of the official working visit of President Ferdinand Marcos Jr. to Tokyo.
“They are having a contract with a shirt brand company called Flex Japan Inc. They are now ordering from the Philippines men’s dress shirts. They will buy the fabric, they will ship it to us, and then we will stitch it and ship it to Japan,” said Young.
He said the Japanese firm wanted the Philippines to ship nine 20-foot containers, with each container loading 5,000 pieces of men’s dress shirts for 12 months. The orders remain to be finalized with the approval of the sample, which FOBAB is working on, he said.
FOBAP is negotiating with specialized factories in Bataan, Batangas and Clark, Pampanga on meeting the orders of the Konoike Group, he said.
“They [Konoike] are convinced that Philippine garment workmanship, particularly men’s dress shirts, has been proven to be good quality and approved worldwide. And they are hoping the breakthrough on the Philippine-Japan garment trade relations,” he said.
Young said more foreign buyers of garments and textiles were also expected to expand sourcing to the Philippines, given the lower prices than what competitors offer.
He proposed measures to bring down prices of garments and textiles in the country such as the creation of cheaper power alternatives like solar and wind. He also underscored the need to upskill industry players to keep up with the modern ways of manufacturing.