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PIA Press Release

DTI forms 6 industry clustering areas nationwide

Tacloban City (February 2) -- industry clustering to be known as the National Industry Cluster Capacity Enhancement Project, is scheduled to be set into motion all over the country on April of 2010, Trade Undersecretary Merly Cruz of the Department of Trade and Industry informed.

Usec Cruz said that the NICCEP will initially cover six proposed project areas for industry clustering in the Philippines to include the Northern Luzon Clusters, the National Capital Region Clusters, the Southern Luzon Clusters, the Visayas Clusters, the Northeastern Mindanao Clusters, and the Southern Mindanao Clusters.

The Northern Luzon Clusters will include the bamboo, tourism, woodwork, vegetables, coffee industries while the National Capital Region Clusters will be comprised of the footwear, organic, greenhouse industries.

The Southern Luzon Clusters include fish processing, tourism, greenhouse, fruits, and coconut while the Visayas Clusters will be composed of sea foods, seaweeds, fiber, coconut, weaving industries.

Furthermore, the Northeastern Mindanao Clusters will consist of the seaweeds, vegetables, mining, wood, tourism industries and finally, Southern Mindanao Clusters will embrace the seaweeds, tuna, tourism, oil palm, rubber industries.

Usec Cruz said the NICCEP project would give priority to industries based on their strength, the concentration of micro and small businesses, type of businesses, potential for growth, export performance and presence of private sector leadership, which will contribute to the country's economic growth.

"One of our biggest problems is the lack of production capacity of many industries due to many factors like lack of unity and good organization, lack of trust among stakeholders, poor management, lack of markets, lack of capital--these are things that can be addressed by this industry cluster approach," Usec. Cruz said.

Transforming various industries in the country beset by these problems will require some government intervention and funding to build trust, boost capacities to perform better, set up networks, agree with common goals and work together on common projects to reach those goals, Usec. Cruz further said.

"This cluster approach is a chance for companies under one industry to combine their strengths and work together to solve common problems like lack of funding or lack of markets for their products," Usec Cruz added.

The NICCEP is expected to train at least 30 industry clusters nationwide that would cover a series of lectures and intensive workshops to be conducted by experts on industry development and the industry cluster approach.

The government will set aside P111.3 million to run its project management office at DTI-Makati for three years while the Japanese government, thru its Japan International Cooperation Agency (JICA), will allocate about P430 million to fund various industry cluster capacity-boosting projects, training workshops and operating expenses. (PIA 8) [top]

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