Bring back competitiveness to exports

A cursory look at the Philippine government’s export efforts shows the need to come up with a more focused program that will help identify new products that can effectively compete in the global market, and subsequently nourish these with the support to grow.

This is not saying that the various government agencies assigned to promoting exports are not doing anything. For close to three decades now, the Department of Trade and Industry through the Center for International Trade Expositions and Missions (CITEM) has been supporting small and medium scale manufacturers with export potential.

Of late though, much of government efforts have been through Manila FAME, an annual selling exhibition that relies on foreign buyers coming to the country to check on what would be worth importing and selling in their respective markets.

Selling expeditions abroad, however, have been neglected. Philippine exporters are encouraged to participate in these foreign trade trips but rarely receive sufficient support. This has resulted in token delegations that are a hodge-podge of quirky cottage industry goods.

Sore thumb

In foreign trade shows, the row of booths usually allocated to the Philippines would stick out like a sore thumb beside other countries’ selling areas. Not only would there be just a handful of merchant booths, the quality of products sold pale in comparison to those offered by other small and medium scale manufacturers from other countries.

While the booths of other countries would be teeming with people and buyers, ours would be void of crowds. Overall, this leaves an impression of how uncompetitive Philippine products are in the global market, even compared to developing economies that just recently opened.

More importantly, it shows how unprepared our government is at handling and maximizing these export promotion opportunities. It also gives the impression that there is no comprehensive program being pursued to encourage exports of Philippine products.

For the few Filipino entrepreneurs that participate, the experience can be traumatic. With little sales, they go home unhappy and tired after not being unable to recover their cost for participating in the international exposition and not getting enough encouraging prospects for export sales.

In the end, it becomes a futile exercise: those who participated in the international trade fair often end up not wanting to risk investing in future events. In turn, this results in succeeding years with a decreasing number of trade participants.      

Proudly Filipino

Contrary to this pervading sentiment, there is hope for our small- and medium-scale manufacturers. Given proper guidance and advice, the Philippines has a surfeit of products that can compete well in the export market.

Looking at the manufactured goods that are showcased during the annual Manila FAME expositions, a wide range of Philippine-made home decorations, furniture, jewelry, apparel, and food items have high potential of growing and expanding in the global environment.

The biggest problem that needs to be tackled though is prioritizing what these products are, and implementing a viable program that will encourage the private sector to invest in larger scale manufacturing of such products.

Special attention must be given to finding new products that may be successfully introduced in well-chosen export markets. This gives new manufacturers ample support to grow the business, and consequently open additional jobs for more people.

Thinking big

We have to start thinking big. This means throwing away the cottage industry mentality of producing goods for local consumption. If we want to market our pili nuts, fish sauce, organic palm vinegar, or coconut sugar abroad, we have to invest in good packaging design and technology.

It’s not just enough that these products are unique or endemic to the Philippines, they must be presented in a most appetizing and assuring manner.

The same holds true for our indigenous fashion and household products. They must not just look fabulous, they must also be durable and easy to care for. Most importantly, its price must not be too high that it becomes a deterrent to selling.

Thailand has shown that with government support and strong private-public councils, small manufacturers are able to enter and conquer the export market. Cambodia, Vietnam and Laos are starting to do what Thailand is doing.

We don’t have to reinvent the wheel. Our government and the organizations representing the private sector simply have to act at once if we to be able to strengthen our export of locally manufactured goods.

Answer to poverty

Despite the significant contribution of our overseas migrant and domestic business process outsourcing work force to the local economy, the government should realize the contribution of these kinds of exports in the overall economic roadmap.

We may have been left behind in some sectors like automotive manufacturing or footwear, but there are other areas that are still for the taking and have the potential to bring us to higher levels of industrialization.

The Asian Development Bank, in a recent study, pointed out that developing our manufacturing sector and looking at improving our export potential is the only way by which the country can bring more jobs to its population, and therefore reduce the number of its poor.

If the Philippines cannot reduce its poverty incidence, it will not be able to bring economic growth to sustainable levels in the long term. Only by putting up more factories will there be jobs available for the poor who do not have the opportunity to work abroad or be employed in BPOs.

Champions League 2012

National Collegiate Championship

Starting today, eight teams are vying for the seat reserved for the Metro Manila representative in the Round 16 (Sweet 16) of Champions League (PCCL) 2012 National Collegiate championship.

The teams competing in the Metro Manila Qualifying games are NAASCU champion St. Claire College of Caloocan Saints, UCLAAI champion St. Franciss Assisi Doves, ISAA champion PMMS Mariners, MNCAA champion Centro Escolar U Scorpions, JRU Heavy Bombers and Mapua Cardinals (both from NCAA), and Adamson U Soaring Falcons and UE Warriors (both from UAAP).

The top qualifier from the Metro Manila qualifying games will join the Northern/Central Luzon and the South Luzon/Bicol regional champions in the Luzon-Metro Manila bracket of the Round 16 (Sweet 16) “step-ladder knock-out phase” to enter the Final Four.

Already seeded in the Final Four are UAAP five-peat champion Ateneo Blue Eagles and the NCAA three-peat champion San Beda Red Lions.

Following is the schedule of television coverage of Champions League games at ABS-CBN Channel Studio 23 from 2 p.m. to 6 p.m.: Nov. 6 – Mindanao regional championship; Nov. 7 – North-Central Luzon regional championship; and Nov. 8 – Metro Manila Qualifying Finals.

Visit www.CollegiatechampionsLeague.net for more details.

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.