Reliable suppliers.  The garments value chain depends largely on MSMEs which need support from government. (PNA Photo) 

The Foreign Buyers Association of the Philippine (FOBAP) has identified some gaps in the value chain that hamper the growth of exports of  textile and garments.

The group said one of these constraints is that some suppliers do not meet specified standards as well as international trade rules.

This serves to limit the number of reliable suppliers to buyers.

Difficulty in meeting orders by exporters is another constraint due to low productivity that results from reliance on imported raw materials for finishing the product.

FOBAP said with raw materials not readily available  due to importing process delays,  export order volumes are not met resulting to cancellations.

Due to the closures arising from the pandemic and business losses and in the absence of new manufacturing investors, the number of operating factory suppliers has declined which in turn has made sourcing by FOBAP challenging.

The group said the country needs to attract new investments in garments and textile manufacturing  and appealed to the Marcos administration to put in place a  comprehensive, sustainable and non- obstructionist export liberalization policies to support the sector.

In a letter, the group outlined its wishlist to the new administration.

FOBAP said to attract more foreign direct investments (FDI), the government could consider granting subsidies and implementing  intervention and out of the box solutions  in reviving  dollar revenue earner industries such as the garments and textile.

For Congress, the group is pushing for the prioritization of the bill filed by incoming House Speaker Martin Romualdez in support to the micro, small and medium enterprises which belong to the supply chain as well  House Bills 4462 and 4316 which aim to put in order the shipping costs and regulations vital to business survival. – Irma Isip

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