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TRANSCRIPT
The Roadmap to Revival &Enhanced Competitiveness
Philippine Textile-Garment Industry:
Myrna S. Austria, Ph.D.
Mitzie Irene P. Conchada, Ph.D.
School of Economics
De La Salle University
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Textile-Garment Industry Roadmap
Defining our vision, knowing our mission, & setting the strategies to achieve our goals
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A Sustainable, Competitive & Integrated
Philippine Textile-Garment industry that
generates Inclusive growth
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VISION: SCI TGI
Vision: Explained
Competitive
The industry is able to compete in both domestic and foreign markets.
Sustainable
The industry is capable of meeting the needs of present & future generations.
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Vision: Explained
Inclusive growth
The industry directly & indirectly contributes to economic growth by generating income & employment to all stakeholders & allied industries and support services.
Integrated
Textile-garment become one industry, acting as conduit for each other’s growth & development.6
Missions
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To break the cycle of poverty by providing employment to members of society who have less opportunity in the formal labor sector.MISSION 1
To boost the capacity of domestic manufacturers & retailers to meet domestic market demand.
MISSION 2
Missions
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To increase business profitability of textile-garment manufacturers, exporters & retailers.
MISSION 3
To ensure the industry lasts for generations through sustained growth.
MISSION 4
Missions
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To enhance growth of industries & services allied to textile & garment manufacturing.
MISSION 5
To restore the Philippines’ position among the global leaders in garments exports, fully-supported by the country’s textile manufacturers.
MISSION 6
Goal-Setting & Strategizing
▪ To achieve the Vision-Mission, we set milestones to mark the industry’s progress & develop strategies to achieve them.
▪ The strategies & the implementation of programs in line with the strategies should collectively bring about the achievement of the milestones.
▪ Some strategies require years of continued implementation before their impact is fully realized; hence, best to implement them early on.
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Milestonesand
Strategies
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SHORT-TERMMILESTONES
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BY 2020-2022
5-10%Increase in natural &
synthetic textile fiber
3-5%Growth in textile exports
Top 20PH among exporters for garments
12.3 %Annual increase in garment exports
SHORT-TERMMILESTONES
Philippines is competitive in CMT (cut, make & trim), and OEM (original equipment manufacturing), supplying both domestic market and foreign retailers & contractors.
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BY 2020-2022
Short-TermStrategies
Address Smuggling & Ukay-Ukay
▪ Strictly implement RA 4653
▪ Implement SGS pre-shipment inspections
▪ Cancel business permits related to ukay-ukay
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Top 3 Strategies
Short-TermStrategies
Provide Access to Capital and Land
▪ Provide financial assistance for the purchase of raw materials and new machinery & equipment
▪ Increase hectarage of land for BT, non-BT or BCI cotton production & other natural textile fibers
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Top 3 Strategies
Short-TermStrategies
Provide Incentives
▪ Incentivize adoption of innovative production processes that promotes sustainability & green environment; use of solar energy; innovation in waste disposal & upcycling
▪ Reduce value-added tax (VAT)
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Top 3 Strategies
Short-TermStrategies
Enhance Market Access for Exports
▪ Establish bilateral FTAs, particularly with the USA
▪ Take advantage of FTAs and GSP schemes
▪ Negotiate for more liberal ROO requirements
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Short-TermStrategies
Leapfrog innovation and automation
▪ Shorten production cycle through automation
▪ Adopt innovative methods & processes to entice the current generation of tech-savvy labor force to join the industry, e.g. customizing designs via an app or 3D body imaging, wearable technology
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Short-TermStrategies
Leapfrog innovation and automation
▪ Foster a symbiotic relationship between fast & sustainable fashion, i.e. industrial upcycling
▪ Use innovative distribution & retail technologies to shorten lead time to reach sales channels & consumers19
Short-TermStrategies
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Import Raw Materials for Textiles
▪ Continue to import cotton, fiber and fabrics
Establish regional/localized
ecosystems
▪ Mapping of regional resources on indigenous fiber
Short-TermStrategies
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Strengthen institutional support
▪ Unify the industry under one organization: Federation of the Philippine Textile-Garment Industry
▪ Review government regulations & streamline administrative processes
▪ Build & maintain a database for the textile-garments industry
Short-TermStrategies
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Strengthen institutional support
▪ Close monitoring of industry performance & environment
▪ Enhance coordination & partnership between relevant government agencies and LGUs in implementing laws & programs beneficial to the industry.
Short-TermStrategies
Manpower Development
▪ Incorporate in the K-12 curriculum knowledge, attitudes and skills on textile-garment manufacturing
▪ HEIs to develop & promote degree programs on textile & garment technology, fashion & fashion design
▪ Provide industry-based (not community-based) training programs
▪ Train manufacturers on international standards and QA leading to certification23
Short-TermStrategies
Encourage Sustainable Production
▪ Encourage use of solar energy
▪ Adopt best practices on waste management
▪ Encourage waste minimization, e.g. offcut pieces of fabrics made into rags, bags and accessories
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Short-TermStrategies
Improve Product Development
▪ Increase funding or incentivize R&D
▪ Establish strong linkages with global players to gain experience on product development
▪ Encourage product specialization in provinces and regions
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Short-TermStrategies
Improve Product Marketing and Promotion
▪ Strengthen industry’s market presence through e-commerce, social media, trade fairs, & tourism
▪ Tap LGUs to promote locally produced garments in their area
▪ Strictly enforce RA 9242 Philippine Tropical Fabrics Law to localize suppliers for the uniform of civil servants
▪ Promote Buy Filipino movement26
Medium-TERMMILESTONES
▪ Integrated textile-garment industry:
Garments manufacturing will be upgraded from CMT/OEM to ODM (original design manufacturing), with fabrics & other raw materials supplied by the country’s textile manufacturers.
Focus on high-value garment products27
BY 2023-2025
Medium-TERMMILESTONES
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BY 2023-2025
10% or moreIncrease in natural &
synthetic textile fiber
Top 15PH among exporters for garments
21.7%Annual increase in garment exports
Medium-TermStrategies
Address Infrastructure Gaps & Logistical Bottlenecks
▪ Streamline connections between the industry’s upstream and downstream producers
▪ Help maintain the efficiency of production, transportation, communication and distribution through high-quality infrastructure and logistical services
▪ Reduce power rates29
Medium-TermStrategies
Establish clustering & agglomeration
▪ Push for clustering of textile-garment industries and together with allied & support industries, they form agglomeration to reduce costs & achieve economies of scale
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Diversify Market for Exports
▪ Reduce dependency on major exports markets such as USA and EU-28
▪ Focus on establishing channels to emerging export markets
Medium-TermStrategies
Promote fashion design training centers
▪ Establish more training centers which offer short term courses in fashion design, product development, pattern-making, etc.
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Increase R&D Investment
▪ Garments manufacturers should establish in-house design teams who will work closely with brand owners & buyers.
Long-TERMMILESTONES
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BY 2026-2029
Top 10PH among exporters for garments
45.8 %Annual increase in garment exports
LONG-TERMMILESTONES
▪ To be a global brand that is unique, well-known, affordable and great for everyday wear
▪ Industry upgrades to OBM (Original Brand Manufacturing), with homegrown Filipino labels
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BY 2026-2029
▪ Textile manufacturers to fully support garment manufacturers
▪ Maintain ability to cater to local demand for garments and offer a more diverse range of products
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LONG-TERMMILESTONES BY 2026-2029
Long-TermStrategies
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▪ Push to be a global player in Filipino branding on textile-garments
▪ Minimize, if not close, infrastructure gaps and logistical bottlenecks
Long-Term Strategies
▪ Focus manpower training programs on highly specialized skills for OBM.
▪ Increase the supply of natural fiber textile raw materials
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THANK YOU!
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