Export diversification, key to competitiveness – DTI
December 12, 2021 | 00h00
MANILA, Philippines – The country will need to diversify its exports of products and services, as well as its markets for the sector to be competitive in the long term, according to the Department of Trade and Industry (DTI).
âPhilippine exports are highly concentrated not only on a few sectors but also on a few companies, especially in electronics. COVID-19 further underscored the importance of actively seeking new markets and diversifying export products in building a resilient and agile export industry, âCommerce Secretary Ramon Lopez said in a statement.
He said more than 3,700 exporters entered new markets last year to reduce the impact of the pandemic on the economy.
In addition, the country recorded new exports in 32 product lines that had not been shipped in the past five years.
“We need to actively pursue export diversification strategies, both in terms of markets, products and services to ensure the long-term competitiveness of the country’s exports and improve resilience to future shocks,” Lopez said.
The country’s total merchandise exports rose 16% to $ 62.1 billion in the first eight months. It is also 5.71% higher than the average values ââbefore the pandemic from 2016 to 2019.
Electronics, which accounts for the bulk of the country’s exports, rose 15.3 percent year-on-year to $ 38 billion at the end of October.
The other exports which showed strong growth during the 10-month period are manufactures and other mineral products which increased by 24.6% and 25.8% respectively.
In October alone, the country’s total merchandise exports rose 2 percent to $ 6.41 billion from $ 6.29 billion the previous year.
“This positive development despite global trade challenges is also attributed to the decision of the Interagency Working Group on the Management of Emerging Infectious Diseases not to disrupt the operations of exporters by allowing 100% capacity even during enhanced community quarantine and stricter alert levels. This has therefore boosted the performance of the sector and enabled them to fulfill their commitments in the global market, âsaid Lopez.