The garments and textile industry remains to be one of the country’s top foreign exchange earners garnering a total of US$848,744 Million in exports in the first half of 2009, 0r 4.93% of the total US$17.225 Billion Philippine exports. Top export markets include the US, Japan, Great Britain, Germany and Canada.

The industry currently employs close to 400,000 workers making it the largest employer in the manufacturing sector with 11% of the national total. An additional 700,000 people are employed as home-workers and small subcontractors.

The key strength of the industry is the availability of skilled, well-educated and creative labor force who can easily assimilate the technology and skills required by the industry. Likewise, the Philippines has the geographical conditions strategically suited for natural fiber and natural dye production, coupled with available technologies that are ready for transfer and commercialization.

Major production sites are geographically dispersed in the National Capital Region (Metro Manila) and Regions III (Pampanga, Bulacan), IV-A (Rizal, Cavite, Laguna, Quezon), V (Bicol region) and VII (Cebu).

Investment Opportunities/Industry Prospects

The industry is optimistic on the chances of the passage in early 2010 of a U.S. Bill (H.R. 3039) dubbed as “Save Our Industries Act (SAVE)” that will give the Philippine-made apparel duty-free access to the United States. It is designed to facilitate higher level of trade in textiles and apparel between United States and the Philippines, to enhance the commercial well-being of their respective industries, and to sustain and create jobs in times of global economic hardship.

For the first 2 years of its implementation, the industry sees fresh investments of the US$480 Million and the entry of 60 new companies in the garments export business. These investments are projected to create 210,000 new jobs, which is equivalent to half the number of jobs that has been displaced since elimination of quotas in 2001.