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Nine multinational firms setting up garment factories in Philippines – FOBAP

Catherine Talavera - The Philippine Star
Nine multinational firms setting up garment factories in Philippines â FOBAP
FOBAP president Robert Young said four multinational companies from Cambodia, three from India, and two from Vietnam have indicated their intention to invest in the Philippine garments and textile industry during their one-on-one business-to-business (B2B) meeting as part of the 54th Asean Economic Ministers Meeting and Related Meetings held in Cambodia from Sept. 11 to 18.
STAR / File

MANILA, Philippines — Nine multinational companies have expressed interest to establish textile or garment factories in the country as part of their expansion plans, according to the Foreign Buyers Association of the Philippines (FOBAP).

In a statement, FOBAP president Robert Young said four multinational companies from Cambodia, three from India, and two from Vietnam have indicated their intention to invest in the Philippine garments and textile industry during their one-on-one business-to-business (B2B) meeting as part of the 54th Asean Economic Ministers Meeting and Related Meetings held in Cambodia from Sept. 11 to 18.

Young said these planned investments are expected to generate an initial 9,000 jobs and increase garments and textile exports by $500 million per year.

“Normally, these investors will have an ocular trip for assessment, then project study will follow. So, it’s in the near term like before the year-end,”said Young, who is also Philippine Exporters Confederation Inc. (Philexport) trustee for textile, yarn and fabric sector.

FOBAP said the companies’ expansion plans are in line with meeting the growing demand here and abroad, especially as economies bounce back from the pandemic.

Young said that an ideal textile fabric mill would have a minimum investment of $1 million, while a garment apparel factory would be from $300,000 to $500,000.

“Demand on textile is high for the 110 million Filipino population with no local manufacturing source, annual domestic clothing spending amounts to approximately $2 billion, not to mention the potential in the export business,” he said.

Young said the Philippine garments and textile industry exports are estimated at $1.5 billion, with a growth rate of 10 percent annually.

Should these potential investments materialize, Young said key export markets they can cater to include the United States and European Union as well as the Asean economies.

“The expansion plans by multinational investors are normally spread over the region,” he said.

Young said the government has approved the Foreign Investments Act, Public Service Act, and the Retail Trade Liberalization Act.

“These aim to attract foreign investors by easing the barriers to inbound foreign investments. Moreover, the measures were enacted to push economic recovery by welcoming new capital, ideas, and technology that come along with the foreign investments,” he said.

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