Drafts dev't plan Export sector gears up for ASEAN integration

CEBU, Philippines - The export industry, being one of the key growth drivers of the country's economy, sees the importance of drafting an expansion plan to keep pace with other exporters in the world market.

The anticipated ASEAN Economic Community integration in 2015 will transform the Philippines to be at par with the emerging markets in the global community, said Ponciano Manalo, Jr., undersecretary of Trade and Investment Promotions Group.

The regional integration, participated by the government, exporters and other concerned sectors will give benefits for free trade agreements to the Philippines and its trading partners.

Manalo joined on Tuesday in the regional consultation in Cebu for Philippine Export Development Plan 2014-2016, which aims to come up with strategies and policy reforms for the export sector.

He encouraged exporters to prepare as the country takes on tougher challenges amid the regional and global economies, emphasizing the importance of the export sector in developing a sustainable economic growth.

By the time President Benigno Aquino III approves the three-year PEDP, it will serve as the road map for the country's export development.

Export value

The overall exports make up 45.5percent (almost half) of the country's GDP last year; the country is also a major exporter of electronic products which covered 40percent of the total exports, cited Manalo, who also chairs the Export Development Council (EDC) Executive Committee.

Moreover, the Philippines is also the world's largest producer of coconut, pineapple and abaca (more than 7percent of export revenues), and other exports include bananas, petroleum products, furniture, tuna, metals and clothing, official data said.

On the other hand, the value of exports is estimated to rise by 10percent in the coming years as the country's gross domestic product is also eyed to grow by 7percent this year, the DTI official noted.

"What we need to do is surpass that 7percent growth by getting a target of 10percent," Manalo said. "I'm hopeful we can achieve that considering that we have a very strong electronic market."

He also cited last year's export revenues that reached $77 billion and is expecting a rise of $7 to $9 billion this year.

"But we should not remain complacent but vigilant," he stressed, adding that now is the great time for the export sector as global players and investors are looking into the Philippines for trading opportunities.

Based on the existing PEDP, the value of good and service exports is seen to climb to $120 billion in 2016, said Apolinar Suarez, the chairman of Philexport Cebu and EDC's member. 

Japan and the United States remain the country's two largest export markets while China, being the third and other ASEAN countries have grown importance as export partners.

As the global economy dropped momentum due to the crisis pose , the industry, Manalo said, has managed the threats that could ruin the country's recovery.

'A lot to be done'

The undersecretary said the rise in credit rating and the strong economic activities are two reasons for export growth: "However, there are always a lot to be done."

A case in point is the increase of local (from 3 to eleven this year) and global trade fairs to help Philippine exporters promote their products specifically to the international buyers.

He said exporters really need help from the government and other industry leaders.

The trade department has also encouraged other exporters who have high quality products and the ability to supply to join in its trade fairs and road shows.

Those who are producers and would-be exporters are urged to be trained in the Philippine Trade Training Center, he said.

Manalo further said: "If their products are not yet export quality, that's the time we will provide them with capability programs."

He added that instead of monetary aid, exporters benefit from the shared service facilities to speed up the process of their products such as fabrics, coffee, canned goods, processed foods, etc. "These people get better quality and at the same time provide livelihood."

"Hindi pwede yung  'Bahalana  kayo' we need to enable people to look out for themselves to be able to help our industry much better, "he said. (FREEMAN)