While COVID-19 has affected operations of the country’s garments manufacturers, Young is upbeat foreign buyers will continue to look at the Philippines as a source for clothes to be sold.

He said industry players are also hopeful new investors in garment factories will enter the country once the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) is passed into law.

CITIRA or the second package of the government’s tax reform program will gradually bring down the corporate income tax rate to 20 percent from 30 percent, and rationalize fiscal incentives given to firms by making the grant of such performance-based, targeted, time-bound and transparent.

“New factories will come in and then with our advocacy on CSR (corporate social responsibility) and the improvement of the conditions of the factories, I think we will get more orders and somehow, that can attract more orders for the Philippine garments,” Young said.

With a roadmap in place to promote the growth of the local garments sector, he said the industry is hopeful such can lead to increased garments orders from the Philippines.

“Hopefully, that adds to the increase of the garments orders,” he said.

He said the US remains the country’s biggest market for garments this year.

“Right now, the GSP (Generalized System of Preferences) is only for the giftwares and all these hard goods. We are hoping that (in) the new GSP come December 2020, we will include the footwear and garments in the US GSP,” he added.

Source: PhilStar