ABS-CBN News reports danger to Bulacan garments firms due to peso dollar rate's continued rise.
"The strong peso performance against the dollar may just shutdown existing garments factories in Bulacan by next year, stakeholders said.
Eilyn Or, the manager of Foremost Embroidery Center located at the RIS Industrial Complex here told The STAR that for this year, they only registered one with positive results as far as marketing is concerned.
The reason is simple.
The resurgence of the peso performance against the dollar which the government claimed as a sign of economic development in the country, partly due to the infusion of much needed remittances by overseas Filipino workers.
This recent development was compounded by the current trend in the global garments industry where international clients tend to look for cheaper production cost.
To this, the Philippines is competing with Thailand, Vietnam, India, China and even Bangladesh.
"This year, five of our clients moved to Vietnam," Eilyn said noting that international companies are their biggest clients, but those companies are always looking for ways to reduce their production cost by looking for sub-contractors that would offer them lower prices."
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