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PROSPECTS FOR THE TEXTILE AND GARMENT INDUSTRY IN THE PHILIPPINES

Order #: T1310_2006TX US$ 425.00 / €325
Published by Textiles Intelligence; December 2006; 32 Pages, 18 Tables
Available in Electronic Format (Pdf)

The textile and garment sector in the Philippines is a vital part of the country’s economy and one of the most emportant employers. The industry expanded rapidly during the 1960s and 1970s but has recently experienced a decline. This has been due mainly to tougher conditions in export markets and a failure to invest in new manufacturing technology.

Exports have been a key driver of growth in the past. The country used to be one of the largest sources of imported garments for the major markets of North America and Western Europe when exports from its major competitors were held back by quotas. However, the arrival of a new world trade regime in 2005 has caused serious damage to the country’s international competitiveness. China and other Asian countries are capturing an increasing share of these markets. Even so, in 2005 the textile and garment sector was the Philippines’ second largest source of export earnings, although its share was down sharply earlier years.

Order There is an urgent need for the industry to restructure into larger manufacturing units, and to re-equip itself with modern high-tech machinery in order to secure greater economies of scale, higher productivity and an improvement in its competitiveness. On an encouraging note, there has been a substantial increase in foreign investment in the past five years. Much of this has come from other Asian producers. Research and investment is also going into the development of indigenous fibres—such as abaca, banana, pineapple and silk—in order to ease the country’s serious lack of locally sourced raw materials.

This report provides expert comment and analysis, including:

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TABLE OF CONTENTS 

SUMMARY 
DEVELOPMENT OF THE TEXTILE AND GARMENT INDUSTRY
IMPORTANCE TO THE ECONOMY
GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
GEOGRAPHY
POLITICAL PROFILE
HUMAN RESOURCES
INFRASTRUCTURE
TRANSPORT/COMMUNICATIONS/POWER
- Roads
- Railways
- Airports
- Seaports
- Electricity
- Telecommunications
COST OF SERVICES
- Wages
UTILITIES
STRUCTURE OF THE TEXTILE AND GARMENT INDUSTRY
TEXTILES
GARMENTS
PRODUCTS AND MARKETS
PRODUCTS
- Raw materials
- Garment manufacturing
EXPORT MARKETS
Order - Development of export markets
- Leading export markets
- Other export markets
- Leading export products
IMPORTS
- Imports by product
- Sources of imports
PRODUCTION TRENDS
TEXTILES
- Sources of raw materials
- Capacity utilisation
GARMENTS
- Production trends
- Capacity utilisation
PRODUCTION TECHNOLOGY AND MACHINERY
GOVERNMENT POLICIES AND INVESTMENT INCENTIVES
INVESTMENT INCENTIVES
NON-FISCAL INCENTIVES
FOREIGN INVESTMENTS
COMPETITIVENESS OF THE TEXTILE AND GARMENT INDUSTRY IN THE PHILIPPINES
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
FUTURE PROSPECTS

LIST OF TABLES

  1. Philippines: political and economic profile, 2005
  2. Philippines: economic indicators, 2003-05
  3. Philippines: average monthly wage rates of workers in selected occupations and selected industries, 2005
  4. Philippines: electricity rates, Sep 2004
  5. Philippines: water rates, Sep 2004
  6. Philippines: freight rates for cargoes using ocean-going vessels, Sep 2004
  7. Philippines: freight rates for export cargoes using domestic vessels, Sep 2004
  8. Philippines: freight rates for containerised cargoes of local origin or destination, Sep 2004
  9. Philippines: mailing rates, Sep 2004
  10. Philippines: textile and clothing exports, 1970-2005
  11. Philippines: textile and clothing exports, 1997-2005
  12. Philippines: textile and clothing exports by major destination, 2002-05
  13. USA: imports of clothing from the Philippines by fibre type and by value, 2004 and 2005
  14. USA: imports of clothing from the Philippines by fibre type and by volume, 2004 and 2005
  15. Philippines: clothing exports by product, 2003-05
  16. Philippines: textile and clothing imports, 2001-05
  17. Philippines: indices of textile, clothing and footwear production by value and by volume, 2000-06
  18. Philippines: foreign direct investments, 1996-2005

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