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PIA Press Release
2006/12/22

China-located US businesses good for RP exports

Davao City (22 December) -- US companies locating in China is beneficial to Philippines exporters.

Joji Ilagan-Bian, Mindanao representative to the Export Development Council in a press briefing said exporters here of products to America would no longer transact direct to the US that could be more costly but may course it through China.

Bian who attended a recent exhibit of plastic recyclable materials said a lot of American firms were also part of the exhibition.

"There presence in the area is of an advantage because if businesses want to export to America they can just go to China and not in the US so they could save on the cost of shipping or other mode of transporting the product," she said.

The cost of shipment is a big slice of doing business to exporters and there is some sort of an informal cartel here, she said.

She said shipping cost here is high but you can't do anything you have to live by it and the businesses already factor that in their operations.

Bian also said that food, fruits and vegetables and crafts are among the top products that would easily find way to the China market.

"With its current population now the country would need food for their people," she said.

She also said that anything done by hand is highly potential exportable product in China.

With the creativity of Filipinos they have shown competitive advantage.

She said handicrafts, furniture or other products made by bare hands is an attractive product and could command high price.

Bian said with the high purchasing power of the Chinese they have the means to pay good products especially those done by hands.

China she said is already mechanized and the Philippines should not follow such steps because the Chinese are already way ahead.

"With more talents and skills Filipinos don't run out of ideas and they continue to create," she said.

Bian meanwhile said that in the field of Business Process Outsourcing (BPO) such as operation of call centers it is India and the Philippines that lead in the industry.

She however said those countries like China is also considering such market and in fact trying to teach their workers the English language.

Although she said that the industry for the Philippines is resilient it should exert more effort in terms of marketing.

"Marketing should be continuing and we should not get scared of such move instead Philippines should rather take it as tool to be more competitive," she added. (PIA/Prix D Banzon) [top]

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