China'S Textile Exports To The Philippines Maintain Rapid Growth

 

 

Analysis on the situation of Philippine textile and garment industry

 

      The Philippines plans to become one of the top ten garment exporting countries in the world from 2026 to 2029. The goal of the Philippines is to achieve an annual growth of 12.3%. The rich utilization of Philippine local fabrics (such as abaca, Pina, silk and other fabrics) and the improvement of workers' technical expertise make the industry gain advantages. According to the data, in 2016, the import volume of fabrics and textiles in the Philippines has reached 1.624 billion US dollars, with a year-on-year increase of 30%. The import of clothing machinery and textile machinery increased by 70% and 34% respectively. In 2017, China's textile and garment exports to the Philippines reached a record high, with a total of US $6.066 billion, ranking second among the ten ASEAN countries all year round.

 

    The baclaran market is located in palanak City, Manila metropolitan area of the Philippines, next to the baclaran church. Every Wednesday, about 10000 people from all walks of life gather in the church for mass, which is also the busiest day in the baclaran market.

 

    The baclaran market is a local market with long temporary stalls selling everything from fruit to kitchenware, clothes, shoes, bags, accessories, etc. MC silo, a correspondent who works as a local guide, introduces to Xiaobian that the clothing prices in the market are very close to the people. If you are patient, you can find many treasures. But there's also a lot of traffic, especially on Wednesdays and weekends. But if you enjoy the feeling of downtown, you will love it here.

 

      In recent years, mutual political trust between the Philippines and China has been deepened, the strategic guidance of the two heads of state for bilateral relations has been strengthened, and exchanges at all levels have become increasingly frequent. The economic and trade cooperation between China and the Philippines has also made great progress. The areas of cooperation are constantly expanding, and the bilateral trade volume is increasing year by year. China mainly exports Electromechanical, steel, automobile, clothing, plastics and other products to the Philippines, and mainly imports electrical machinery, mechanical parts, fruit nuts, animal and vegetable oils and other products from the Philippines. China is the largest trading partner, import source and export destination of the Philippines. According to the statistics of the Philippine statistics office, the bilateral trade volume between the Philippines and China in 2018 reached US $30.093 billion, accounting for 17.1%, with a year-on-year increase of 18.1%; The Philippines imported US $21.394 billion from China, up 22.5% year on year; Philippine exports to China amounted to 8.699 billion US dollars, an increase of 8.5% year-on-year, and the trade deficit between the Philippines and China was 12.696 billion US dollars.

 

      The Philippines is the only ASEAN country that enjoys both the US GSP and the EU's GSP. This preferential policy enables more than two thirds of the tax items to be completely exempted from tariff. As a member of ASEAN and WTO, the Philippines has ratified a series of regional free trade agreements to deepen regional economic integration, including China (ACFTA), South Korea (akfta), Australia New Zealand (AANZFTA), Japan (ajcepa), India (aifta) and Europe (EFTA). As one of the few ASEAN countries that have not fallen into negative growth in the past year, the Philippines has a stronger position than many others. For textile and garment enterprises seeking market diversification, the Philippines is a very promising market opportunity.