Philippines: Collaboration with Vietnam, Indonesia urged as trade focus

DAVAO CITY -- The Philippines is aiming to forge partnerships with Indonesia and Vietnam for specific industries under the integrated economic environment of the Association of Southeast Asian Nations (ASEAN) beginning December this year.

Among the potential sectors for cooperation are oil, coffee, bamboo, ship-building and geothermal energy development.

Mr. Rodolfo said discussions are being pursued with these two neighbors as part of the Philippine’s collaboration strategy for the ASEAN Economic Community (AEC).

“Together, these three countries account for about 67% of the total ASEAN population, so we are saying that where these three will move, that is where the ASEAN will head to,” the DTI official said during a forum last week on ‘Doing Business in Free Trade Areas’ held in Cagayan de Oro City.
The ASEAN has an estimated consumer market of 600 million.

Mr. Rodolfo said trade relations with Indonesia are more established and more effort will have to be exerted for Vietnam.

Part of the government’s strategy is ensuring mutual compliance to regulatory commitments made under the AEC as well as facilitating business-to-business linkages. The VIP group also share a common concern on the lingering territorial dispute with China over the South China Sea.

OTHER LEVELS

At the same time, Mr. Rodolfo stressed that “collaboration at all levels” is key for the country’s preparation for the AEC, meaning among government agencies and local government units, between the public and private sectors, within the private sector, and regional sub-groupings within ASEAN.
“The AEC has provided us a focal collaboration point for all government agencies; this has given the DTI the leverage to tell the other agencies that we cannot dilly-dally on programs because 2015 is here,” he said.

On the other hand, Roberto W. Ansaldo, a trustee of the Cagayan de Oro Chamber of Commerce and Industry and a former Department of Agriculture official, pointed out during the forum that there remains a pronounced lack of coordination among government agencies and too many layers in the bureaucracy which hinder growth, particularly in the agricultural sector.

“The Philippines in general is very good in the science of agriculture, (but) we are weak in the business of agriculture,” said Mr. Ansaldo, also the president of Rocky Mountain Arabica Coffee Co., citing in particular the poor standing of the country’s coffee sector despite vast land areas ideal for the high-value crop.

Among the issues he cited that need to be threshed out are identifying lead agencies for specific products, land ownership, financing, and forging links between farmers who can serve as suppliers and export capital ventures.

BIMP-EAGA

In Mindanao, collaboration opportunities are being pursued within the Brunei-Indonesia-Malaysia-Philippine East ASEAN Growth Area (BIMP-EAGA), where cooperation initiatives saw revitalization last year.

Davao City hosted in October last year the 2nd BIMP-EAGA Trade Fair and Business Leaders’ Conference with focus on the Indonesia-Malaysia-Thailand Growth Triangle.

“The BIMP-EAGA is a microcosm of ASEAN... but many of our products are the same, so it would be better to pursue consolidation between entrepreneurs from different countries and together they can target the bigger market outside the ASEAN,” said DTI Davao Region Director Maria Belenda Q. Ambi in an interview.

Mindanao and Palawan are the focus areas for the Philippines under the BIMP-EAGA sub-grouping.

In Central Mindanao, also called the Soccsksargen Region, the DTI is strengthening the processed food sector by bringing together micro, small and medium enterprises (MSMEs) and building capacity for export.

“The RIPPLES (Regional Interactive Platform for Philippine Export) program, in partnership with the Bureau of Export is one of our platforms in engaging the food industry players, especially the MSMEs, in developing their competency for the outside market, to make their products export ready,” said Dagny Athena S. Martirizar, DTI-12 Trade and Industry Development Specialist.

One of the Region 12 provinces, Saranggani, has a counterpart enhanced business development program called the Integrated Product and Market Development Project (i-PMDP) for processed food MSMEs.

“We are preparing them to produce in volume of their products, not only to cater to the ASEAN market but also in European countries,” Ms. Martirizar said.

Meanwhile, the Philippine Exporters Confederation, Inc. (PhilExport), has called on government to increase the allocation for science and technology (S&T) development to help MSMEs improve production capacity and product value.

PhilExport President Sergio R. Ortiz-Luis, Jr., in a statement, said “Philippine manufacturing is currently stuck with relatively low- technology processes in sectors such as food, beverages, handicrafts, footwear, and clothing.”

Mr. Luis also said the ASEAN blueprint, S&T and innovation, backed up by research and development, are “crucial impetus that will promote competitiveness and dynamism of sectors like food, agriculture and forestry, energy, the MSME, among others.”

“We are really focusing our collaboration within the ‘VIP’ countries,” said Assistant Secretary Ceferino S. Rodolfo of the Department of Trade and Industry’s (DTI) Industry Promotion Group, referring to the emerging informal sub-grouping of Vietnam, Indonesia, and the Philippines. 

Source: bworldonline.com