An industry group said exports of garments, textile and apparel are expected to rise 2 percent to $1.33 billion by the middle of 2024 as manufacturers expand into new markets to boost revenues.
Foreign Buyers Association of the Philippines (FOBAP) president Robert Young said 2024 would “not be an easy year” for the sector amid Russia’s invasion of Ukraine and the Israel-Hamas war causing disturbances in the supply chain.
“We are now looking for some other countries in South America and in the Middle East. We are now talking to them which somehow can add up to our production quantity,” he said.
FOBAP members exports to the US, Canada, the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
Garment exporters are in the process of receiving orders from new and traditional markets, but the volume is not as big as last year’s, according to the group.
FOBAP sees high demand for basic wearables and fast fashion or high-end garments next year.
Young said the projected 2-percent export growth hinges on government initiatives to establish more free trade agreements (FTAs) with other countries and a remedy to reduce power cost or provision of energy subsidy especially for the export sector.
“Our freight on board price is 15 percent higher than the ASEAN competitors. Therefore, it will be not an easy task for us in getting the appropriate quantity for our production,” he said.
Young said the increasing bilateral agreements and subsidized power costs could ease up production costs.
The extension of the EU’s Generalized Scheme of Preferences Plus (GSP+) is also seen to boost the sector’s revenues, he said.
“As far as productivity is concerned, we are ready, and we have ample laborers as of now. This is due to lesser production orders,” he said.