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By Katrina Mennen A. Valdez, Reporter
YEARS after it lost a prized quota with the US,
the Philippines is drafting a “blue print” aimed at reviving the
garment industry, transforming it into Asia’s hub and the
country’s single biggest job-generating industry.
Ma. Teresita Jocson-Agoncillo, executive
director of the Confederation of Garments Exporters of the
Philippines (Congep) told The Manila Times that local products are
15 percent more expensive than those of China.
The industry official said the government saw
the opportunity to grow the industry after learning that Shenzhen in
China, the Philippines’ main competitor, passed a law that will
increase the cost of their products by at least 20 percent.
“[Once] the new law in China takes effect, the
Philippines will be more competitive in terms of price cost,”
Jocson-Agoncillo said.
“Slowly China is becoming less competitive.
[We] are confident that [we] will be able to attract not only
windfall investments but the major ones,” she added.
Of the seven board members of Congep, five of
them are Hong Kong-based and have operations in Shenzhen, while two
are top locators in Clark.
“An example of which are ladies’
undergarments, which are already being manufactured here. This kind
of operation could not be done anywhere since it involves science
and [a] delicate process,” Jocson-Agoncillo said.
Trade Secretary Peter Favila said that Clark
Special Economic Zone will become the Philippines’ “garments
city,” from where goods will be transported to the Subic Port for
eventual shipment overseas. Using the Subic Port would entail 30
minutes of unloading the products as against the more than three
hours if hauled all the way to Manila.
“Less travel of goods is safer and cheaper,”
Jocson-Agoncillo said.
Once Subic Port becomes the jump off point for
garments to the US, ships no longer have to pass through Hong Kong,
she said.
Part of the blue print includes bringing down
sewerage, water, transport and logistics costs for garment
manufacturers in Clark.
“[We] cannot touch the labor cost, which
accounts for 60 percent of [our] local value-added,”
Jocson-Agoncillo said.
The country’s garments industry shipped $2.25
billion worth of products last year and employed a 250,000-strong
workforce.
“The electronics industry, which sells about
$32 billion annually employs about 300,000 people. Just imagine how
many [workers we] will need if the garments industry grows,” the
Congep official said.
Favila said garment-makers have given the
government hope that more jobs can be created since this industry is
labor intensive and hires even the least literate people.
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