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Cancelled garments orders are returning to Philippines


The Philippine Exporters Confederation (Philexport) says the Foreign Buyers Association of the Philippines (FOBAP) has stated orders cancelled previously due to the pandemic are slowly returning, giving hope of a rebound in garments and hard goods exports between 10 and 15 per cent this year. Local factories have received new orders worth $280 million.

Robert Young, FOBAP president and trustee of Philexport for textile, yarn and fabric sector informed from sewing floor to store shelf, the 2021 outlook for troubled mid to high fashion items are dim and hazy. Therefore, a price re-costing/re-levelling is a must. Only the basics and essentials, such as undergarments, fast fashion are now staying alive.

Young noted fresh confirmed export orders for the country’s soft goods comprising mostly garments worth $200 million will be on sewing floor up to the first quarter. Buyers included Wacoal, Adidas, Ralph Lauren, Ann Taylor, JCPenny, among others.

Almost 70 per cent of the orders are from the US, while the rest are from European Union, Canada, Australia, among others. Young is optimistic about export growth despite the pandemic, as the country’s factories hope to book orders which are not served by other Asian neighbours due to their full production.

Most of these orders are coming from the relocated (moved out) foreign factories in China. Also, the Philippines will have added volume for more complicated items jackets/sportswear which are not the production preference of other countries. To boost exports particularly to the EU, Young urged government to request the EU to grant the usage of imported fabric/textile in the apparel production, thus it will be eligible for zero duty to the trading bloc under the Generalized Scheme of Preference Plus (GSP+).