Day: April 10, 2023

The Philippines is eyeing stronger economic relations with Morocco in consideration of its linkages with the African markets. Ahead of Manila and Rabat’s 50th anniversary of diplomatic relations in 2025, Philippine Ambassador to Morocco Leslie Baja said interactions between the two states have steadily increased, with a number of agreements signed in the past year alone. ‘Two years from now hopefully, there can be an increase in high-level visits. Hopefully in 2025, it could also be the highest level,’ he told the Philippine News Agency in an interview. ‘What I’d like to see is really on the economic side because we do need more economic partners in the Philippines and if we are able to look at Africa, not just Morocco as a product and investment destination, then I think we’ll be able to further help the economy,’ he added. Baja said the region can be considered a ‘niche market’ but if Manila is able to tap that, it could be looking at a multibillion dollar worth of consumer base. ‘We find Africa a big enough market not just for us to consider looking into it, investing in it or trading at the very least. In the same vein, we’re working very hard to see more Moroccans going to the Philippines and Southeast Asia, basically,’ he said. The Philippine Embassy in Rabat, he said, is currently working with the Philippine Chamber of Commerce and Industry (PCCI) and its Moroccan counterpart to create a possible agreement ‘to link the private sector of each country to each other’. ‘Through this agreement, they would have a network of several thousand enterprises that can link up directly with each other on whatever economic relations that they want with each other,’ he said. Citing latest figures, Baja said Morocco currently ranks as the Philippines’ 70th top trading partner out of 231, with the bilateral merchandise trade in 2022 reaching USD30.96 million. ‘Our exports to Morocco increased by 9.61 percent from 2021 so there is an increase in our exports, although the balance of trade is still in favor of Morocco,’ he said. The Philippines and Morocco formally established diplomatic relations on April 10, 1975. In 2020, the Philippine Embassy was opened in Rabat after decades of closure due to budget constraints. During the visit of former Foreign Affairs Secretary Teodoro Locsin Jr. to Rabat in March 2022, the two states signed an air services deal and a memorandum of understanding (MOU) on political consultations. On transportation, the Moroccan Railway Training Institute (IFF) and the Philippine Railway Institute (PRI) signed an MOU to strengthen cooperation on skills development. In that same visit, the PNA and Maghreb Arabe Presse (MAP) inked a news exchange deal leading to MAP’s deployment of its first journalist to the Philippines in less than a year.Within 2022, the two countries also sought to expand cooperation on culture, education, as well as interparliamentary relations. ‘Things have been holding in the relations between our country and Morocco. After the visit, a lot of things have transpired and a lot of agreements signed,’ Baja said. ‘We have some pending agreements that are close to signing and hopefully can materialize within the year,’ he disclosed.

Source: Philippines News Agency

Vietnam’s value of textile and garment exports in the first quarter of 2023 reached 7.1 billion USD, down 17% compared to the same period in 2022, due to the impact of global inflation, according to the General Statistics Office (GSO).

This was the deepest decline in the first quarter since 2009, the GSO said.

The global inflation made consumers tighten spending on non-essential products, causing textile and garment exports to major markets such as the US and EU to drop sharply.

There are many forecasts saying that the domestic textile and garment industry’s exports growth will slump this year.

Since the fourth quarter of 2022, textile and garment enterprises have had a shortage of export orders, leading to a sharp drop in export turnover and factories operating at below capacity.

Export orders in the second and third quarters are still shrinking, and workers are working reduced hours.

Than Duc Viet, General Director of Garment 10 Corporation, said the reduced demand for textiles and garments this year was due to the impact of inflation, pandemic, and geopolitical tensions between Russia and Ukraine. In addition, concerns about financial market instability and a banking crisis have also affected demand.

In the first quarter of this year, exports of May 10 were estimated to decrease by 10% compared to the same period last year.

Product volume in the second quarter is estimated to decrease by 20-30%, and until now, May 10 has not received new orders for production in the third quarter, said Viet.

Viet Thang Jean Co, Ltd (VitaJean), a large garment firm, has also reduced factory capacity, and temporarily closed a high-grade product production line because of a lack of orders.

Pham Van Viet, VitaJean Chairman and Vice Chairman of the HCM City Garment, Embroidery and Knitting Association, said that purchasing power has not recovered in Japan, the US and EU, while it has reduced by about 20-30% in February in the domestic market.

He said that the prospects of the textile and garment industry in the first half of 2023 are still bleak. From the third quarter of 2023, the market may gradually recover, as the price of input materials decreases, reducing pressure on businesses.

However, all forecasts lack clarity because the conflict between Russia and Ukraine has not cooled down yet.

Coping with the downturn

In this context, textile and garment enterprises have to implement many solutions such as restructuring enterprises, markets and products to maintain production and keep workers while waiting for the market to warm up.

The VitaJean chairman said that besides traditional markets such as the US and EU, his company is trying to boost exports to Australia and Canada, and at the same time, increase domestic consumption to partly compensate for the decline in exports to the traditional markets.

Meanwhile, Than Duc Viet said that May 10 has also restructured its businesses and sustainable development strategies. It also needs to review product position, market, management, technology, and production models to meet customer requirements.

He also said for the domestic market, this business is looking for products to meet the needs of customers in the context of the economic downturn.

For exports, May 10 is seeking new markets besides its traditional markets including the US, Europe and Japan.

Vietnam’s 15 signed free trade agreements (FTAs) bring a lot of opportunities to expand to new export markets, so South Africa, Africa, the Middle East and China are likely to all be huge markets in the future, he said.

The May 10 general director said now is also the time of sustainable development associated with green production.

The world is encouraging green growth, and Vietnam committed to reduce carbon emissions at COP26. Therefore, May 10 is switching to using green materials and green energy. As it increases the proportion of green products, this business will have many opportunities to promote production and exports in the future.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that the textile and garment industry last year still exported product worth more than 42.2 billion USD, up 8.5% over the same period the previous year.

However, that result mainly came from export growth in the first six months of the year. From the third quarter of 2022, exports began to show signs of weakness due to China’s zero-COVID policy and the global recession.

The textile and garment industry’s production continued to deteriorate in late 2022 and remained in that situation until the first quarter of 2023.

In 2023, Giang forecasts that the textile and garment business will still have many challenges. The most significant is the trend of increased layoffs and moving the workforce away from big cities.

Meanwhile, domestic enterprises have not been able to meet a number of complex orders.

Foreign markets also have requirements for recycled products and transparency in operations. Those are issues that businesses cannot immediately respond to, especially small and medium sized enterprises.

According to Giang, the most important solution now is to diversify markets, products and brands produced in Vietnam.

On the other hand, businesses should use more green and recycled products, and have infrastructure investment plans and in-depth strategies to meet the requirements of foreign markets.

In addition, textile and garment enterprises need strategies to respond to the fast changes of the market, such as fast delivery times, competitive prices, stable quality, and transparency in products.

Businesses also need to build connection channels to grasp the challenges and opportunities of the global textile industry, digital technology trends and new policies.

Giang said that large-scale enterprises with production chains of yarn, weaving, dyeing and sewing, will survive, while businesses specialising in processing will face great challenges.

Source: Lao News Agency

Vietnam’s Ho Chi Minh City and Laos’ Houaphanh province on March 7 signed a memorandum of understanding (MoU) on cooperation for 2022-2025, aiming at strengthening their relationship in various fields.

The MoU was inked by Deputy Secretary of the Party Committee and Chairman of the People’s Committee of HCM City Phan Van Mai and Vanxay Phengsoumma, Secretary of the Party Committee and Governor of Huaphan during the latter’s visit to the Vietnamese southern economic hub.

Under the deal, the two sides agree to continue to strengthen their political ties and promote the exchange of delegations in contribution to cultivating the special solidarity and comprehensive cooperation between the two countries in general, and between Ho Chi Minh City and the Huaphan province in particular, in a more stable manner.

In the 2022-2025 period, HCM City and Huaphan will continue to create favourable conditions for agencies and enterprises of the two localities to strengthen investment cooperation in the fields of infrastructure, education, health, information and tourism.

Mai said the signing of the MoU will lay the foundation for building a cooperation programme between the two localities in the new period.

The city wishes to cooperate comprehensively with Huaphan province, focusing on tourism and trade, he said.

HCM City is willing to provide scholarships for undergraduate and post-graduate students from the Lao province, exchange experience and organise training courses to improve qualifications for its officials, Mai said, adding that it is also ready to cooperate with Huaphan in sharing experience in developing high-tech agriculture and agricultural products processing.

For his part, Vanxay Phengxumma thanked HCM City for its assistance to the province in recent years, especially in infrastructure construction and providing scholarships for its students. He also hoped to continue receiving support from HCM City in human resources training.

Source: Lao News Agency

Vietnamese President Vo Van Thuong and a high-ranking delegation of Vietnam arrived in Vientiane this morning beginning an official visit to Laos at the invitation of General Secretary of the Lao People’s Revolutionary Party and President Thongloun Sisoulith.

He was greeted at Wattay International Airport in Vientiane by Head of Presidential Office Khemmany Pholsena, Mayor of Vientiane Atsaphangthong Siphandone, Deputy Foreign Minister Thongphane Savanphet, Lao Ambassador to Vietnam Sengphet Houngbounyuang, Vietnamese Ambassador to Laos Nguyen Ba Hung, and relevant officials of both countries.

The Vietnamese President Vo Van Thuong is on a working visit to Laos, Apr 10-11, to enhance the great friendship, special solidarity and comprehensive cooperation between Laos and Vietnam.

Source: Lao News Agency

Prime Minister Sonexay Siphandone received in Vientiane on Apr 8 a courtesy call from Chairman of Vietnam’s Ho Chi Minh City People’s Committee Phan Van Mai as the latter was paying a working visit to Laos between Apr 7 and 12.

At the amicable talks, Prime Minister Sonexay appreciated and highly valued the working visit to Laos by the Vietnamese official as a significant contribution to strengthening the great friendship, special solidarity and comprehensive cooperation between the two Parties, governments and peoples of Laos and Vietnam, particularly to the relations and cooperation between Vientiane of Laos and Ho Chi Minh of Vietnam.

Expressing thanks to the warm welcome of Prime Minister Sonexay, the Vietnamese official expressed his satisfaction over the fact that the relations and cooperation between the two countries has enjoyed a constant growth over the past years.

The guest also informed the Prime Minister about the aim of his working visit to the Lao PDR.

Source: Lao News Agency

The Philippine National Police (PNP) on Monday reported that at least 62 people died of drowning while another four were killed due to vehicular accidents since the start of the Holy Week. In a statement, PNP chief Gen. Rodolfo Azurin Jr. said the incidents were reported from Ilocos Region, Cagayan Valley Region, Central Luzon and Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon) since April 6. A total of 57 drowning incidents were recorded with 62 deaths — the latest of whom reported was in Batangas wherein three people died while two others went missing in Lemery town. On the other hand, 11 vehicular accidents were reported with four deaths. Despite the Holy Week tragedies, Azurin said the observation of Holy Week is generally peaceful with no serious security-related incidents recorded since April 6. ‘We attribute this to police visibility and civilian cooperation for the peaceful observance of the Lenten season,’ he added. The PNP has been on heightened alert since April 2, with almost 75,000 policemen tapped across the country to secure roads, transport hubs and other places of convergence. The heightened alert status will be lifted at 8 a.m. on Tuesday, when almost all of those who traveled for the Lenten break are expected to have returned to their homes and workplaces. “Deployment of personnel will focus now on bus terminals, seaports, and airports as activities and movement of the traveling public will be more in these areas,” Azurin pointed out.

Source: Philippines News Agency