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.
The Foreign Buyers Association of the Philippines (Fobap) on Tuesday told the Inquirer that orders from the United States slumped in February and March, signaling what could very well be a weak first quarter performance for the local garments export industry.
“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. We suspect 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.
https://business.inquirer.net/381067/modest-growth-seen-for-ph-garment-exports-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 to Close Multiple Stores in 2023
Young also expressed concern about the recently reported store closures of Walmart, another US retail giant, and its plans to shutter a total of 20 stores in 11 states this year.
In view of this, the Fobap official has called on the government to step up its efforts to push for more free trade agreements (FTAs) with other countries, especially in light of the recent rebuff from the western country to have such a bilateral trade pact with the Philippines.
“What we want to see is for the government to push for more FTAs with other countries. Honestly, we cannot really rely on the United States alone. 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.
The Fobap official also said that Middle Eastern nations, as well as Latin American countries, also hold the potential to be big export markets for the Philippines with proper FTAs.