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The Roadmap to Revival & Enhanced Competitiveness Philippine Textile- Garment Industry:

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  • 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

    2

  • Textile-Garment Industry Roadmap

    Defining our vision, knowing our mission, & setting the strategies to achieve our goals

    3

  • A Sustainable, Competitive & Integrated Philippine Textile-Garment industry that

    generates Inclusive growth

    4

    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.

    5

  • 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

    8

    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

    9

    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.

    10

  • Milestonesand

    Strategies

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  • SHORT-TERMMILESTONES

    12

    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)

    16

    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

    18

  • 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

    20

    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

    21

    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

    28

    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

    30

    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.

    31

    Increase R&D Investment

    ▪ Garments manufacturers should establish in-house design teams who will work closely with brand owners & buyers.

  • Long-TERMMILESTONES

    32

    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

    33

    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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