A major European apparel brand has pulled out its orders from the Philippines and is transferring the orders to Vietnam because Vietnam has a free trade agreement with the European Union, according to the Confederation of Wearables Exporters of the Philippines (Conwep). It was not revealed which brand was the one that pulled out.
Resuming formal negotiations for a free trade agreement (FTA) between the Philippines and the European Union (EU) is “very timely” for the local garment industry, according to Conwep Executive Director Maritess Jocson-Agoncillo. This is because a European brand shifted its orders from the Philippines to Vietnam and Cambodia.
The Conwep official said that Vietnam’s free trade agreements with Europe and Cambodia are the reason for the withdrawal of orders from the Philippines.
Furthermore, Jocson-Agoncillo disclosed that the local apparel industry is being impacted by the diversion of orders from the Philippines to its neighbouring nations, stating that “between 4,800 and 6,000 workers are being affected” by this issue.
In terms of exports, the Conwep official said this might result in an annual loss in exports of around US $ 200 million to US $ 300 million.
