Target of doubling exports by 2016 still achievable

MANILA, Philippines - The target of doubling the country’s exports to $120 billion by 2016 is still achievable amid expectations the Philippines can withstand the volatile global economy.

Philexport president Sergio Ortiz-Luis said the decline in export revenues slowed to 14 percent in October from 27 percent the previous month.

“For exports, we will be happy with a flat or minimal growth, considering the situation,” he said during the group’s fourth general membership meeting.

Ortiz-Luis said the projected 4.5 to 5.5-percent gross domestic product growth target, an indicator of the country’s economic performance, augurs well for the export sector.

He said a generally rosy picture of the economy was also shared by agencies such as Moody’s and Fitch when they upgraded their credit ratings of the Philippines.

Despite these, he emphasized the need to implement various strategies to achieve the target of doubling exports and economic growth amid global financial problem.

Ortiz-Luis urged exporters to pursue branding, clustering, value chain upgrading, and value-adding and collaborating.

He said they need to invest more in technology and research and development (R&D) to better provide quality and innovative goods specially geared towards the Asian customers.

“Asia accounts for over 60 percent of world population and home to the fastest growing consumer market. Specifically, recent export performances have pointed to the North and East Asia as responsible for buying 60 percent of our exports, although most of these are intermediary goods,” he noted.

The export leader said government needs to invest on infrastructure and prioritize cost-competitive agenda meant to reduce the high cost of power and streamline business and permitting procedures.

Bangko Sentral ng Pilipinas deputy governor Diwa Guinigundo said investments in human resources, infrastructure and innovation are important to boost the country’s competitiveness.

“That is the beauty of the American economy. The United States (economy) is down but later, maybe in two to three years, it will recover because of innovation,” he said during the recent National Export Congress.

“Because of their huge investment in R&D, they are able to cut down on cost. If they are able to leverage on technologies that translate into lower cost of production, they can be more productive,” he added.

For his part, Philippine Chamber of Commerce and Industry (PCCI) vice president Donald Dee said investments in innovation are imperative.

“Innovation fosters economic development, improves productivity and builds competitive advantage of our industries,” he said.