The Philippine textile and garments industry is struggling to align with global standards for circularity, with a recent survey showing only 2 percent to 3 percent participation in sustainable practices under the circular economy model.
Robert Young, textile trustee of the Philippine Exporters Confederation (Philexport), said the country’s garments sector, largely comprised of micro, small and medium-sized enterprises (MSMEs), remains unprepared to meet international circularity goals.
Young made the comments at the Asia Pacific Economic Cooperation (APEC) Workshop on Supporting MSMEs’ Transition to a Circular Economy in the Textile and Garments Industries.
“We are lagging, with compliance levels hovering at only 2 percent to 3 percent. There is a clear need for a stronger and sustained advocacy, along with public-private collaboration, to bridge this gap,” said Young.
The APEC workshop, held from June 5 to 6, 2025, in Hanoi, Vietnam, identified several key barriers to circularity including limited repair options, poor e-waste infrastructure, lack of innovation and green technologies, weak policy support and low consumer awareness.
Cultural resistance and the absence of national circularity roadmaps further complicate the shift, particularly for developing economies.
Young, who is also president of the Foreign Buyers Association of the Philippines (FOBAP), said urgent policy intervention and financial support are needed for the country to catch up.
“The clock is ticking. If we don’t act now, we risk falling irreversibly behind in a sector that is both economically vital and environmentally critical,” he said.
Globally, the textile and garments sector is the third-largest industrial industry and the most labor-intensive, employing around 80 million workers as of 2020.
It is also among the most environmentally damaging, with wasteful consumer behavior, chemical use, and short product life cycles contributing to significant pollution.
A joint report by Circle Economy and Deloitte indicates that the global circularity rate has fallen to 6.9 percent, as consumption in the textile and garments industry continues to outpace population growth and overwhelm existing recycling systems. Only 7 percent of the 10 billion tons of materials used each year are sourced from recycled content, with the vast majority still coming from virgin materials.
Despite these challenges, the 21 APEC member economies, including the Philippines, committed to a two-year collaborative timeline starting in 2025 to help reverse the declining global circularity rate.
