Troubled traders seek additional funding

Philippine exporters are seeking bigger funding from the government for product development and export promotions, to enable local enterprises to become more competitive in the global market.

In seeking at least P2 billion in funding, Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., stressed the need to align the available fund to the requirements of the local export sector in boosting their businesses.

The industry official lamented the fact that the international trade group alone, which consisted of agencies such as the Design Center, the Bureau of Export Trade Promotions and the Center for International Trade Exhibitions and Mission, among others, only had a budget of P500 million, of which 80 percent went to cover administrative costs.

The Department of Trade and Industry meanwhile, an agency meant to attract local and foreign investments, create jobs, and boost the export sector among others, has proposed a budget of only P3.2 billion for 2015, down 29 percent from this year’s budget of P3.928 billion.

This lack of adequate funding has hampered many local export firms from being able to market their goods abroad, such as an upcoming trade fair in Milan.

“We’re being left behind by our neighbors in the Asean. We’re now a minor contender,” Ortiz-Luis yesterday said. “We say the country’s merchandise exports have been growing 6.8 percent, and they say this was not too bad, given the 3 percent growth in exports in other Asean countries. But we have to remember that the value of Vietnam’s exports is 2.5 times more than ours. Our merchandise exports [amount to a] little over $52 billion, but Vietnam’s is over $120 billion, while Thailand has over $200 billion in exports.”

Filipino exporters are hoping that the proposed budget can be included in the proposed Philippine Export Development Plan for 2014 to 2016, Ortiz-Luis said.