The three product groups contributed close to 70 percent of the monthly dollar revenues from the export of goods from the Philippines during the pre-crisis period. They were also the first victims of order cancellations and sales slump for over a year now.

For the first nine months of the year, electronics and semiconductor exports declined by an average of 30 percent a month, while garments sales abroad nosedived by 40 percent for the past 15 months.

Other affected enterprises were fine jewelry makers that import gemstones like jade, diamond and other precious stones not found in the Philippines and furniture makers that now source their rattan and hardwood raw materials from still resource-rich countries in Asia and South America. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. EDC calls for common export thrust to ride on the crest of global recovery

The government and the export sector must develop a shared program to ride on the crest of the global economic recovery. This was the call made by Export Development Council (EDC) executive director and Bureau of Export Trade Promotions (BETP) chief Senen Perlada to embattled exporters during a year-end briefing in the international trade group offices in Makati early this week.

Announcing that export leaders and their partners in government will sit down to draw a new export plan on January 8 and 9 this coming year, Perlada said “we must have a shared program to achieve common goals” as he exhorted the exporters to submit their industry, sectoral and enterprise plans for integration into the next export plan.

The three-year export plan developed in the early months of the present global trade slump was only partly pushed because most of the growth assumptions during the planning sessions in early 2008 went awry when most of the country's trading partners went into recession.

Encouraged to participate, a leader of the garments industry, the second largest segment of the export sector, retired trade official Clarissa Cruz, asked the EDC to include a garments promotions program in the European Union, particularly the United Kingdom, Germany and Europe.

She said that depending largely on the United States market, Ms. Cruz, now an executive of the popular Natori brand of Philippine ready-to-wear clothes, said that the industry suffered a high 40 percent decline in sales for the part 15 months. That was close to half of the yearly revenues from garment exports before the crisis which stood at over $3 billion.

The fine jewelry industry, proceeding on a better performance during the crisis of bucking the trend by growing by 15 percent in the past 12 months, also sought for an aggressive export promotions program in Europe to expand its present markets in Hong Kong and the United States.

In the midst of the present global trade slowdown, only fine jewelry and tuna products stood their ground of not going below zero growth since the crisis hit the sector with double-digit reversals month after month since October of last year.

Speaking for the food sector, an executive of RFM Corporation revealed that she just came home from an exploratory trip to the Middle East and said there is a big market is awaiting to be exploited there.

The problem, she said, is the lack of harmonized and transparent standards on market access which are not even covered by multilateral trade agreements.

She cited as example the ban on the importation of chicken from Asia allegedly due to bird flu in the region. This, she explained, has effectively closed the Middle Eastern market for Philippine chicken even if it is common knowledge that the country is bird-flu free.

These hidden barriers to markets in the Middle East need only to be discussed between the Philippines and the importing government which trade officials must work on.

Due to the emergence of a growing number of market issues including non-tariff measures that may emerge later as technical barriers to the export of Philippine goods and services, Perlada told industry leaders to put their complaints in writing for either immediate response from government or inclusion in the next export plan. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. RP exports to register positive growth within first half of 2010

The Philippine export sector is on its way to recovery and is expected to achieve a positive growth within the first half of 2010.

This growth projection was given by Senen Perlada, director of Department of Trade and Industry’s Bureau of Export Trade Promotion, following the slight 0.7-percent growth posted by the sector in October 2009 to $3.7 billion from previous month’s $3.6 billion.

“I think, we can see very clearly on the month-on-month (revenues), we are on the way to recovery. The point is how to sustain this performance,” he said in an interview.

Perlada said the sector already hit rock bottom at the beginning of the year due to the global economic crisis, but has started improving months after.

“We are now seeing the recovery of the local market; we are seeing green shoots but it is nonetheless, a recovery that is still very fragile…,” he said. “I would dare say that within the first half of 2010, fearless forecast, I think we will have at least positive growth.”

Perlada said the country’s green shoots are products having local value-added like food and jewelry goods.

He said higher export revenues of these products somehow moderated the significant decline in the electronics exports in December 2008 and January this year.

“But electronics is really on the way up already. That will carry us through nominally, hopefully leading to big growth. Inventories have to be built, they have to get back to the channels that have remained dry for a while,” he added.

Perlada said growth drivers for next year also include products which the country can supply to emerging non-traditional markets like neighboring ASEAN countries and even China.

“We have to (also) look at products that serve the ageing society, products that our own overseas Filipinos consume and at very special niche market that cater to more universally-accepted demand like gifts,” he said.

Perlada said Philippine products main export markets would still be the United States.

“We also see good growth in Japan, Greater China and ASEAN. Europe is also still a good market depending on the products or the promotional efforts that we will be having for that area. Then, we are trying to really look seriously at Brazil and India,” he added.

Perlada, also the executive director of the Export Development Council, said they are projecting a minus 11 percent total decline in total exports this year, with merchandise exports seen at minus 19 percent, while services sector to grow positive 29 percent.

“We are looking at 10 percent growth in 2010. We just hope that the tide of recovery will be such that we would have better demand for our merchandise exports. We have no problem with services,” he said.

Perlada particularly cited the business process outsourcing (BPO) which can help moderate declines in merchandise exports. -- Danielle Venz, PHILEXPORT News and Features <--back

4. EO on the development of bamboo industry set for signing

The signing of an executive order (EO) establishing the development strategies on the bamboo industry could pave the way for the increased bamboo production that could ease supply shortage in the local market and at the same time meet needs of the exports market.

“Hopefully, President Arroyo will sign the EO this month. It will be made effective immediately (after the signing),” bared Conrado S. Perreras, chairman of the Bamboo Network of the Philippines, in an interview on the sidelines of a forum.

Perreras said the EO will create the National Bamboo Development Council to promote bamboo as a reforestation material and support bamboo processing in the country.

“The problem of the industry today is lack of raw materials. So if you plant more bamboos, you address the supply side. Meanwhile, the demand is there not only for the local market but also for the international market,” he said.

Perreras, also an economist, estimated the actual bamboo production today at only 30 million poles, just more than half of around 50 million poles needed by the country yearly.

“Right now, there is a big demand (for bamboo). It is not true that there is too much supply and nobody buys. There is just a mismatch -the supply is in Mindanao while the demand is in Luzon. We have to plant where the actual factory is, where the need is, to save on transportation cost,” he said.

To address the supply deficit, Perreras said his non-government organization, BambooPhil, is asking for at least 20 percent of land for reforestation to be devoted to bamboo through the EO.

He said they are looking at the capability of different groups to plant bamboo and then the development of the market for the raw material.

Perreras said the group also intends to raise the funds to finance bamboo planting and help the private sector in acquiring processing equipment.

He added that the EO calls for a 10-year program on bamboo development with a budgetary requirement of P2 billion.

“The EO calls to task the different agencies of government to work with the private sector so that they can plant and process the bamboo for local consumption and for export as well,” he said. “The export market is very huge. Bamboo flooring is one of the products in demand.” -- Danielle Venz, PHILEXPORT News and Features <--back

5. 10th Philippine fine jewelry design competition launched

Aspiring jewelers, designers and students can start submitting their entries for the 10th Philippine fine jewelry design competition which aims to promote excellence in design and craftsmanship of the country’s fine jewelry.

The annual competition has five different categories namely: provincial design image of Bulacan, formal, chic, wedding and plain gold/silver.

The Meycauayan Jewelry Industry Association Inc. (MJIA) explained that the Bulacan’s jewelry design image is a special piece or set of jewelry that will speak of or identify the province’s historical, cultural, spiritual; or religious norms and traditions, economic and social heritage.

One winner per category will be chosen. Trophy and a cash prize of P10,000 each await the five winners.

The design competition, among the longest running design contest so far, is one of the major projects of the MJIA in cooperation with the Product Development and Design Center of the Philippines, PHILEXPORT, Provincial Government of Bulacan and the City of Meycauayan.

The contest aims to tap the cooperation of the jewelry manufacturers in promoting the advancement of the design profession that will benefit the industry.

It likewise intends to create existing and innovative quality jewelry that will suit the taste of domestic and international markets.

The MJIA also announced the winners of the 9th fine jewelry design competition as follows: formal “The Flight of a Million Fireflies” designed by Ericson Manansala and sponsored by Naomi’s Jewelry Exchange; plain gold/silver “Coral” designed by Charmaine Anne Ignacio and sponsored by Naomi’s Jewelry Exchange.

Chic “Trapezoid Necklace” designed by Rose Anne Dimla and sponsored by Goldenas Jewelry; wedding “Two Loose, Two Tight” designed by Junbel Gabriel and sponsored by Brilliant Touch Jewelry Makers; and provincial design image of Bulacan “Bakya” designed by George Bulos and sponsored by Chizpas Jewelry. -- Danielle Venz, PHILEXPORT News and Features <--back

6. RP personal care products to penetrate LaMarCa

The Bureau of Export Trade Promotion (BETP), the export promotion arm of the Department of Trade Industry (DTI), sees enormous market potential for personal care products in Lao PDR, Myanmar and Cambodia (LaMarCa) and is dead set on helping exporters penetrate these markets.

This year the BETP conducted a Market Opportunity Mapping (MOM) to identify and validate business opportunities for personal care products in LaMarCa. The MOM indicates LaMarCa as a fast growing market for personal care products.

According to Michael Dodjie R. Fabian, Assistant Director of BETP, the rapid economic expansion of LaMarCa has fuelled strong demand for personal care products. Personal grooming is becoming increasingly important to consumers around the world and LaMarCa is no exception, he added.

LaMarCa has been experiencing significant growth rates, with Lao PDR and Cambodia expanding by 7.5% and 5% in 2008, respectively. Myanmar registered a double-digit improvement in 2005.

Fabian mentioned that the BETP will be organizing an Outbound Business Matching (OBM) mission there in October next year as an initial effort to tap into the increasing demand for personal care products in LaMarCa.

“Under said mission, the BETP will be providing the LaMarCa prospective buyers access to the country’s personal care product offerings and match these with their specific needs,” he said.

The country’s personal care products have been riding high on the growing demand for personal care products that contain indigenous organic and natural ingredients. In 2006, total exports of cosmetics and personal care products were valued at $42.5 million, a marked improvement from the $18.8 million export earnings in 2002. Products included items using indigenous plants and herbs such as coconut, cashew, gugo, deep-water seaweed, mango, sampaguita and ylang ylang.

ASEAN markets, excluding LaMarCa, absorbed about 40% of the country’s exports of cosmetics and personal care products. In contrast, Philippine exports of personal care products to LaMarCa are currently negligible. Other significant markets for RP personal care products are the United States, Taiwan, and Saudi Arabia. -- Ritchie Alburo, PHILEXPORT News and Features <--back