Exporters must focus on emerging markets

CEBU, Philippines - Although exporters are facing different facets of challenges, it is still seen to survive and sustain its strength in the global market, if it were to re-focus its attention to non-traditional markets, aside from United States and Europe.

“Forget traveling to US. Let’s start building closer relations with non-traditional markets. US, Europe and Japan are difficult this time,” said economist Bernardo Villegas, urging businessmen to spend their vacation and business money to destinations that will provide them business at the same time.

He suggested that Brazil for instance, is one of the most promising emerging markets, along with Mexico, Turkey and other Asian countries.

Penetrating Russia on the other hand, he described is “impossible,” as the country is also suffering from financial woes.

“Forget Florida, Las Vegas. Instead introduce the new generation of future businessmen to destinations like New Delhi, Mumbai, South Korea,” he said as these areas provide huge business opportunities in the next 10 to 20 years.

There is hope for exports, he said if exporters were to make extra effort in seriously developing the “emerging” markets around the world.

He said Korea, is the next Japan, advising exporters, and businessmen to travel to Korea often, and start building partnerships with the Korean traders.

“South Korea is fantastic. Travel to Seoul,” Villegas suggested adding that travel plans should include finding out Korea’s very good research and development [R&D] that is expected to surpass the position of Japan.

An emerging market, he said is a country with at least 50 million people, that would carry the survival of an struggling export sector.

The reason why, the Philippines is named as one of the most powerful emerging markets in Asia, because of its over 90 million population, that even if the export market suffers, the domestic consumers will be able to save the sector.

Promising emerging markets in Asia (aside from the Philippines), include China, Indonesia, Vietnam and Korea.

Meanwhile, Bernardo added that the Philippines, which agri-business sector is considered as sunrise industry, businessmen should also capitalized on this wealth.

He said there is no sense for the Philippines in forcing itself to be self-sufficient in rice production, the country cannot just compete with other rice producing countries specifically in Asia.

Instead, investment in the agriculture should be shifted to growing the production of banana, pineapple and palm.

“Rice sufficiency is highly political. We don’t have competitive edge over other countries [in terms of rice production], we don’t have big rivers like Vietnam and Indonesia,” he said. (FREEMAN)