DESPITE reported losses in the export sector, particularly among furniture exporters and seaweed processing companies, the National Economic and Development Authority (Neda) identified the two industry segments as promising investment areas in Cebu.<\/p>\n
During the 4th Sun.Star Economic Forum at Marco Polo Plaza yesterday, Madelyn Escandor of Neda also named shoe manufacturing, shipbuilding, seaweed processing, medical tourism, knowledge process outsourcing, and film and entertainment as \u00e2\u20ac\u0153promising\u00e2\u20ac\u009d industries in the province.
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\nBut academe and industry representatives think otherwise.<\/p>\n
Mandaue Chamber of Commerce and Industry (MCCI) president Eric Mendoza said not all furniture manufacturers have a bright future.<\/p>\n
He said only furniture exporters who cater to high-end markets will experience further growth. Those that cater to low-end buyers, producing cheaper furniture, are in their \u00e2\u20ac\u0153sunset\u00e2\u20ac\u009d phase, he added.<\/p>\n
\u00e2\u20ac\u0153Endangered\u00e2\u20ac\u009d businesses<\/p>\n
Dr. Victorina Zosa of the University of San Carlos, on the other hand, identified furniture, fashion accessory, gifts, toys and house ware export sectors as \u00e2\u20ac\u0153endangered businesses\u00e2\u20ac\u009d along with: information technology; health and wellness; engineering and construction; metal working; and shipbuilding.<\/p>\n
Zosa, a reactor to the Neda report presented by Escandor, said these industries are under threat due to lack of skilled workers.<\/p>\n
In her presentation, Escandor said Central Visayas is the country\u00e2\u20ac\u2122s fifth largest regional economy. Most of the region\u00e2\u20ac\u2122s economic performance is driven by manufacturing industries and the services sector in Cebu, she added.<\/p>\n
She said Cebu plays a large role in regional growth.<\/p>\n
It has dominated the export industry outside of Luzon, strengthened the tourism industry, reinforced the country\u00e2\u20ac\u2122s bid to be the e-services hub in Asia, provided alternative site for investments and increased government revenues.<\/p>\n
Escandor said Cebu accounts for 46 percent of total exports in Visayas and Mindanao while the rest of the provinces outside Luzon make up 54 percent.<\/p>\n
She admitted, though, that consumer and industrial export manufacturers as well as food and food preparation sectors have posted negative growth last year.<\/p>\n
She also said growth in the seaweed processing sector has been hindered by limited supply of raw seaweeds.<\/p>\n
Losses<\/p>\n
The export sector in Cebu has reported losses caused by the appreciation of the peso against the dollar.<\/p>\n
The rise of the local currency\u00e2\u20ac\u2122s value has not only caused Philippine exports to be less competitive in terms of price, but also diminished the income of export companies which find that their dollar earnings are equivalent to fewer pesos.<\/p>\n
But Mendoza said the appreciation of the peso against the dollar is just an aggravating factor.<\/p>\n
Local furniture exporters have been suffering due to cheaper furniture exports from China and Vietnam.<\/p>\n
Only furniture companies that have found their niche in high-end markets will survive, he said. Those who want to stay up should also tap emerging high-end markets instead of focusing on enhancing marketing in traditional markets like the United States, he added in an interview during the economic forum.<\/p>\n
Still, he said government should review its monetary policies because the effects of the peso\u00e2\u20ac\u2122s rise against the dollar are \u00e2\u20ac\u0153devastating\u00e2\u20ac\u009d on exporters and business process outsourcing companies.<\/p>\n
\u00e2\u20ac\u0153Some economists are saying there is a need to tame the peso, that it is overvalued. The monetary board has to look into that,\u00e2\u20ac\u009d he said. \u00e2\u20ac\u0153(Besides) efforts offered by the government (to cushion industry from the negative effects of the peso\u00e2\u20ac\u2122s appreciation) are not enough.\u00e2\u20ac\u009d (LAP)<\/p>\n","protected":false},"excerpt":{"rendered":"
DESPITE reported losses in the export sector, particularly among furniture exporters and seaweed processing companies, the National Economic and Development Authority (Neda) identified the two industry segments as promising investment areas in Cebu. During the 4th Sun.Star Economic Forum at Marco Polo Plaza yesterday, Madelyn Escandor of Neda also named shoe manufacturing, shipbuilding, seaweed processing, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-4722","post","type-post","status-publish","format-standard","hentry","category-furniture-indonesia-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/4722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=4722"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/4722\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=4722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=4722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=4722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}