Fashion, apparel, textile, merchandising, garments

1. Proposed Philippine Export Development Plan (PEDP) 2008-2010 (Revised as of 22 July 2008) Presentation to PHILEXPORT GMM, HOTEL SOFITEL July 23, 2008

4. Part 2: PEDP 2005-2007 Scorecards Philippine Export Performance vs Targets US$B Sources: NSO, BSP, EDC 43.72 47.45 46.07 53.33 53.85 58.2 58.75

5. Philippine Export Growth Rates vs Targets Sources: MTPDP 2004-2010,BSP,NSO as processed through BETP-managed TRADELINE Part 2: PEDP 2005-2007 Scorecards… cont. %

6. Selected ASEAN Export Performance 2003-2006 (in US $B) Part 2: PEDP 2005-2007 Scorecards… cont. Source: Trademap; ASEAN Secretariat

9. Overall balance in market shares Part 2: PEDP Scorecards, cont. Major Markets of RP Merchandise Exports % 2007 US$ 50.3B

10. RP Merchandise Exports to the World Source: National Statistics Office Part 2: PEDP 2005-2007 Scorecards… cont. Product Group 2007 Value US$M Growth % Share % Electronics 31,023 16 63 Garments & Wearables 2664 -9 5 Machinery and Transport 2,748 9 5 Food 1,476 13 3 Home Furnishing 1,215 7 2 Marine Prods 584 25 1 Mineral Products 2,548 21 5 Petroleum 1,108 21 2 Metal components 481 20 1 Coconut 944 25 2 Others 5,479 6 11

11. Part 2: PEDP 2005-2007 Scorecards… cont. Policy Measures put in place for better business environment Legend: Accomplished On-going; need to accelerate No action so far Policy Measures Milestones/Updates Streamlined and Automated Procedures Export clearance fees eliminated (17 agencies compliant. Others are not due to their charter provisions) ASYCUDA World e-Customs Project is delayed Export Clearance procedures not yet fully computerized Infrastructure Improvements Supported moves for completion of priority infrastructure projects GenSan Fishport improved and compliant to EU standards Export wharfage fees reduced on April 20, 2007 - December 31, 2007. Request for extension ignored

12. Part 2: PEDP 2005-2007 Scorecards… cont. Legend: Accomplished On-going; need to accelerate No action so far Policy Measures Milestones/Updates Export Training & Skills Enhancement DepEd: Teachers retraining on going in English, Math and Science in basic education DOST, TESDA, CITC: Trainings for revenue streams conducted (additional training needed) CHED and TESDA and universities: Ladderization program being implemented Legislative Amendments R.A. 9501 - Amendment of Magna Carta for MSMEs approved (IRR being drafted) Amendment of Customs Brokers Act (3rd Reading, HOR) Anti Smuggling Bill (1st Reading, HOR & Senate) Funding Sources for Export Promotion Php 10.5 M grant from BSP for export promotion (90.5% utilized) Export Promotion Fund P280 M, from DTI, BSP, DBM, NEDA and PHILEXPORT. (Will be fully obligated by 3rd Qtr, 2008) Access of SMEs of GFI financing facilities increased

18. 2008 Export Industry Projections Part 4. 2008-2010 Exports Targets… cont. Sector Growth in % Electronics 0 Garments & Textile 2 Fashion Accessories 11 Machinery & Transport 18-24 Mineral Products 5 Processed Food & Beverages 2 Fresh Fruits & Vegetables 5 Marine Products 10 Home Furnishings 15 Giftwares & decors 2 Metal Components 20 Petroleum Products 12 ICT Services 39

19. Part 4. 2008-2010 Export Targets Growth in services exports to outpace merchandise exports 84.4 15 73.2 14 64.2 8 - 9 58.8 TOTAL 23.4 40 16.7 40 11.9 35 – 40 8.5 Services 61.0 8 56.5 6 53.3 4 - 6 50.3 Goods Value US$B Growth % Value US$B Growth % Value US$B Growth % Value US$B 2010 2009 2008 2007 (Actual)‏

20. Growth in services exports to outpace that of merchandise… Part 4. 2008-2010 Exports Targets 64.2 73.2 84.4

22. 1. Market Strategies a. Geographical Markets b. Culture-based Markets 2. Product Strategies a. Build up competitor intelligence to enhance product differentiation b. Initiate “export branding” consciousness among exporters 3. Enterprise Strategies a. Enhance export capacity of enterprises b. Expand business towards more aggressive export promotion 4. Policy and Legislative Agenda to empower exporters Part 5. Strategies

25. Export Promotion Fund Part 5. Strategies… cont. For every US $1 = US $ 40 increase exports (spent by TPOs) According to ITC/World Bank economists: PEDP Total Exports Target in 2008 is with incremental of US$5.27B in goods (net of electronics) and services Following this standard, we actually need US $117M or around PhP 5.3B this year alone EDC will be asking only PhP1B per year as Export Promotion under PEDP 2008-2010 * 1US$ = Php 45

26. Thank You