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Exporters aim to capture higher-end of global supply chain |
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Filipino exporters are gearing up to participate in higher-value processes in the global supply and value chains to gain access to more international markets and double exports at $120 billion by 2016.
Luis Catibayan, director of the Department of Trade and Industry's Bureau of Import Services, in a seminar, said such strategy is contained in the Philippine Export Development Plan for 2011-2016.
Catibayan said this particularly work for companies with export sectors whose global value supply chain is characterized by multi-country manufacturing such as electronics, garments, automotive and ship-building.
He cited as an example electronics companies acquiring the capability to design, assemble, package and ship consumer electronic products from just manufacturing microchips.
Catibayan said exporters can participate in supply and value chains as a quality and cost-effective component to finished goods and services.
"The idea is for the Philippines to achieve both through foreign and local investments and innovation," he noted.
To capture the higher-end of the supply chain, Catibayan said the country needs to attract investments from companies that are part of the global supply chain for the expansion of their activities in the country.
"This also means that we must encourage investors to lessen their vulnerabilities from "just-in-time" systems and to also consider a "just-in-case" alternative by locating in the Philippines and spreading out business risks," he added.
A trade and investment report released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) pointed out that contribution of small and medium enterprises (SMEs) in Asia-Pacific economies to exports could be enhanced further.
This is through undertaking supportive measures aimed at improving their performance and helping them gain access to international markets, especially through regional and global value chains (GVCs), it noted.
These value chains provide a full range of value-added business activities across borders and provide a product or service from conception through design, sourcing raw materials intermediate inputs, production, marketing, distribution and support to the final consumers.
"Such GVCs are expected to provide an efficient network by establishing linkages with large enterprises or even with other efficient SMEs. They help to boost SMEs' value-added activities in international trade, as SMEs currently play a limited role due to low value-addition and lack of proper networking," it noted. -- Danielle Venz, PHILEXPORT News and Features
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