MANILA, Philippines - The Japan International Cooperation Agency (JICA) has committed more investments from Japan in at least 20 industrial sectors through the National Industry Cluster Capacity Enhancement Project (NICCEP), a three year industry capacity building initiative it signed with the Department of Trade and Industry (DTI).
The JICA-funded project, which was formally signed on Friday, aims to enhance the capacity of selected industry clusters to increase their contribution to the national economy particularly in terms of investment generation, export growth, job creation, and development of small and medium enterprises (SMEs).
The promotion of industry clusters is a major strategy under the Philippine Development Plan 2011 to 2016.
Industries covered by the program are: milkfish, dairy, coffee, bamboo, tourism, information and communications technology (ICT), health and wellness, and wearables and homestyles in Luzon; gifts, decors and housewares, tourism, ICT, and health and wellness in Visayas; banana, mango, coconut, seaweeds, wood, mining, tourism, ICT, rubber, poultry, tuna, and palm oil in Mindanao.
Under the program, there will be an exchange of industry experts on industry cluster development between Japan and the Philippines for the conduct of trainings and workshops and opportunities for forming linkages between producers and marketers.
JICA chief representative Takahiro Sasaki said the project complements the government’s goal of expanding the contribution of manufacturing to the economy.
Trade Secretary Gregory Domingo earlier said that the goal is to raise the share of manufacturing to the gross domestic product (GDP) to 20 percent from 12 to 14 percent in 10 to 15 years.
“The mobilization of key industries is important to expand markets locally and globally ...We support the DTI in this. This will encourage Japanese companies to invest in the Philippines and we promise more investments from Japan,” he said.
Domingo said the DTI is “making a substantial push for SMEs” and that it is currently in talks with the Department of Budget and Management (DBM) for the provision of a budget for the capacity building of SMEs which should consist of access to skills, equipment, market and financing.