MANILA -A trade association of garments exporters said that their exports during the last two months decreased by around 10 percent, contracting as orders from the Philippines’ biggest market went down amid persistent economic uncertainties.
Foreign Buyers Association of the Philippines told the Inquirer Tuesday that the United States’ orders for garments had dropped dramatically in March and February, indicating a possible weak performance by the Philippine export sector.
“The garments industry, as a whole, has been down in the past two months. Even Vietnam is struggling,” Young, whose trade group are buyers and exporters of garments and hard goods, said in an interview.
“No one is buying in America. It is possible that [the United States] is building up its domestic industry already,” he added, expressing doubt whether they can still meet their earlier projections for 2023.
To recall, Fobap—which annually exports $1.5 billion worth of garments and other wearables, as well as around $300 million worth of hard goods, including furniture and handicrafts- is eyeing a 10-percent growth in their exports for this year.
Exports of PH clothing are expected to grow modestly in 2023
“They say that the stores are not selling so well,” he added, saying that it was the same for apparel, as well as handicrafts and furniture retailers.
Young earlier said that some of their biggest clients in the United States, which order Philippine-made handicrafts and furniture include IKEA, Crate and Barrel, Crabtree and Evelyn, as well as Bed, Bath & Beyond
Days ago, retail giant Bed Bath & Beyond filed for bankruptcy, as well as announced on their website that they would be winding down their operations.
Walmart Closes Multiple Stores by 2023
Young expressed concerns about Walmart’s plans to close 20 stores across 11 US states in the coming year.
Fobap’s official urged the Philippine government to increase its efforts for the promotion of more FTAs with other countries. This is especially true in view of recent rejections from western nations to sign a trade pact bilaterally with the Philippines.
“What we want to see is for the government to push for more FTAs with other countries. Sincerely, we can’t really depend on just the United States. We need FTAs with other countries which can buy our products,” Young said.
Aside from the United States, Young said that the EU—a regional bloc of 27 countries—is the next biggest market for them, holding the second biggest potential to date for their exports.
Fobap’s official said Latin American and Middle Eastern countries could also be important export markets for Philippines.
—ALDEN M. MONZON INQ
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