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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

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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


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


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


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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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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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


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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


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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


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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.


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


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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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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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


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


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


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


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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