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By Katrina Mennen A. Valdez, Reporter
Editor’s note: The first part reported how
the garments industry—whose products make up the country’s
second-largest export—is working toward a revival that will turn
the Philippines into Asia’s fashion and clothing hub. If
successful, that is expected to generate much-needed jobs for
Filipinos.
Last of two parts
THE executive director of the Confederation of
Garments Exporters of the Philippines (Congep), Ma. Teresita
Jocson-Agoncillo, told The Manila Times that local products are 15
percent more expensive than those of China.
She said the government and the industry’s
leaders saw the opportunity to grow the industry after learning that
Shenzhen in southern China, the Philippines’ main competitor, had
passed a law that will increase the cost of Chinese products by at
least 20 percent.
“[Once] the new law in China takes effect, the
Philippines will be more competitive in terms of price,”
Jocson-Agoncillo said.
“Slowly China is becoming less competitive. We
are confident of being able to attract not only windfall investments
but also established world leaders in the garment and clothing
industry,” she added.
That group should know. Of the seven board
members of the garments confederation, five are Hong Kong-based with
operations in Shenzhen, while two are top locators in Clark.
“An example of the special products is
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 the Clark
Special Economic Zone will become the Philippines’ garments city,
from where goods will be transported to the Subic Bay Freeport for
shipment overseas. Using Subic means getting the goods loaded on
ships will take only 30 minutes, compared with more than three hours
if the shipment were hauled all the way to the Port of Manila.
“Less travel of goods is [also] safer and
cheaper,” Jocson-Agoncillo added.
Subic instead of Port of Manila
“Once Subic Port becomes the jump-off point
for garments to the US, ships no longer have to pass through Hong
Kong,” the Confederation executive director said.
Part of the blueprint for reviving the local
garments industry 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 expense,”
Jocson-Agoncillo said.
The country’s garments industry shipped
$2.25-billion worth of products last year and employed about 250,000
people.
“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,” she
said.
Favila said garment-makers have given the
government hope that more jobs can be created, since this industry
is labor intensive and can employ even poorly educated workers.
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