Move up the value chain, RP mfg firms told

The country’s manufacturing sector has to move up the "value chain" in order to effectively compete with the low cost, high economy of scale industries of China and Vietnam.

This is the advice of Trade and Industry Secretary Manuel Roxas II to local export manufacturers.

According to Roxas, "our labor has to be much more productive to be able to continue encouraging foreign manufacturing entities to locate in the Philippines."

Roxas acknowledged that "we may no longer be as competitive in the clock radio level of products, but we are the standout in products like the DSP digital switch chip made by Texas Instruments in Baguio which power all Nokia and Ericsson mobile phones worldwide."

Furthermore, Roxas said, the Philippines produces Intel’s highest-rate and most advanced Pentium 4 micro-processor.

In fact, he said, the Philippines is number one in Intel’s network.

The Philippines, Roxas pointed out, "is no longer just stuffing the boards and assembling. We are into testing and design, so that our local value-added in the electronics industry has gone up from eight percent to as much as 30 percent."

Even in the garments industry, Roxas continued, "we are moving away from simple apparel and more towards the intricate and higher value products as our workers are superior even in cutting and design."

Roxas expressed optimism that the country’s export sector will soon get back on its feet and start running again.

According to the DTI head, "we continue to capture a considerable chunk of the US market as our key exports like electronics and garments have been moving up the value chain."