A GROUP of Thai businessmen has identified Cebu as a possible location for its expanding textile and garments industry.
The delegation, composed of eight representatives from different Thai textile and garments industry associations, met with their counterparts in the Cebu Chamber of Commerce and Industry (CCCI) last week.
Kumjorn Chuenchoochit, director of the Textile Manufacturers Association in Thailand, said the group visited Cebu to see if there are opportunities for the sector to invest in the province’s textile and garment manufacturing industry.
During their three-day visit that ended yesterday, the Thai group checked the kind of products that are available in Cebu and also assessed price factors in the industry. The group also visited a number of shopping malls in Cebu City.
Chuenchoochit said the group also wanted to see how the Philippines’ import process works. Aside from Cebu, the group also visited Manila.
Compared to Manila, the group noted that labor costs in Cebu are lower. However, Chuenchoochit also observed that energy costs in the country in general are high.
Jose Ng, honorary trade advisor of Thailand to the Philippines, told the group that in the case of power costs, investors who put up factories in the country will have the option to connect directly to the National Power Corp.
Competitive
With this, the power cost will be lower and will be competitive with Thailand’s power rates, he said.
He also said the prevailing minimum wage in Cebu, which is P250 a day, is also competitive with labor rates in Thailand.
“Cebu also has the highest productivity rate,” he added.
Aside from these, Ng also explained to the Thai group the other incentives available to foreign investors should they decide to put up plants within export processing zones.
The textile and garment manufacturing industry is the biggest foreign currency earner of Thailand.
Chuenchoochit mentioned that most of the Thai industry’s products are exported to the United States and Europe.
The Thai group is comprised of representatives from the Thai Weaving Industry Association, the Association of Thai Textile Bleaching, Dyeing, Printing and Finishing Industries, the Thai Garment Manufacturers Association, Thai Silk Association, Thai Textile Merchants Association and the Bobae Garment Association.
CCCI representatives who met with the Thai delegates included Dr. Edward Gaisano, president; Dr. Mila Espina, head of the tourism committee; and CCCI trustees Melanie Ng and Samson Tiu. (DME)
