The apparel manufacturing industry of the Philippines is fast running out of compliant garment factories.
Reportedly, the Philippines has been lately getting lots of orders mainly owing to the ongoing trade war between USA and China.
The trade war has resulted in many orders getting shifted to the Philippines from China.
Corroborating on the above, Robert Young, President, Foreign Buyers Association of the Philippines (FOBAP), averred that while the country has been receiving non-stop inquiries from buyers since last few months due to the US-China trade war, the lack of compliant factories in the Philippines is fast becoming a concern.
He also said that garment factories in the Philippines are unable to comply with buyers’ requirement that includes compliance of healthy working conditions and child labour.
Consequently, around 20 garment factories have been found to be non-compliant in a single audit done by the buyers.
However, FOBAP hopes that country’s apparel export figures for 2018 would match that of 2017’s US $ 1.3-1.5 billion.
Many Chinese garment companies are now investing in Bataan province in the Philippines to avoid paying taxes imposed by US on apparels made in China.