RP-TAIWAN COLLABORATION ON THE FOOTWEAR INDUSTRY, SHOES IN MARIKINA TO SHINE AGAIN

Officers and members of the Philippine Footwear Federation, Inc. (PFFI), the Marikina Trade Promotion Office, and the Filipino-Chinese Footwear and Allied industries recently attended the trade and investment mission in Taiwan. The mission was organized by the Manila Economic Cultural Office headed by Ambassador Antonio Basilio and Chairman Tomas Alcantara, in coordination with the Philippine Economic Zone Authority (PEZA) through the cooperation of the Taiwanese government, headed by the Taiwan Economic Cultural Office. PTIC-Taipei organized several events attended by the Philippine delegates and successfully conveyed and realized serious prospects for RP-Taiwan collaboration on the Philippine footwear business.

As a result of this visit in Taiwan, the Taiwan Footwear Manufacturers Association (TFMA) showed its interest in the country and has also organized an investment mission and recently visited the Philippines. TFMA is Taiwan's largest and most prestigious footwear manufacturers association whose 451 member companies account for 90% of the industry's total production value. Based on a report submitted by the PTIC-Taipei, Taiwan's footwear industry reached its record peak in 1988 with export volumes amounting to 850 billion pairs valued at US$3.7 billion. Because of mounting difficulties in Taiwan's local industrial policy, currency and infrastructure, hundreds of Taiwanese footwear companies have since relocated their production facilities in China. However, these companies have been facing serious erosions in competitiveness from their China operations due to rising labor, distribution, raw material procurement costs and changing policies that have significantly diminished previous incentives in taxation, infrastructure and logistics. To respond to these difficulties, the Taiwanese footwear industry is retooling its strategy towards expansion in other overseas locations such a Vietnam, Indonesia, Thailand and Bangladesh. PTIC-Taipei's representations to the Chairman and Board of the TFMA have fortunately resulted in serious considerations by its member companies to highlight the Philippines in its shortlist of overseas investment destinations.

The PFFI, the City Government of Marikina and the Department of Trade and Industry in Taipei, are all convinced that the Philippine footwear industry, in active cooperation with PEZA, can offer a competitive package that will merit the relocation of a cluster of Taiwanese shoe manufacturing investments to the Philippines which will result in significant gains for the Philippine economy, specifically in the area of employment generation, an average shoe factory employs anywhere from low of 800 to a high of 10,000 workers.

The City of Marikina, the shoe capital of the Philippines is being considered as a relocation site since Marikina is the shoe business hub in the country. During its visit in Marikina, Mayor Marides Carlos Fernando welcomed and presented the competitive advantage in setting up a business in the City. TFMA delegates are: Lin Chao Chieh, president; Kung Fan Zion, secretary general; Huang Pei Fang, secretary; Lee Chin Shan, Yeh Chao Ming and Mr. Hsiao Yu Hsien also members of the TFMA. Several city government officials and members of the business community also welcomed the Taiwanese delegation namely: Representative Del de Guzman, officers of the Marikina Filipino Chinese Chamber headed by its president Benito Ong, Marikina Bankers Association headed by president Francisco Benito, Marikina Valley Chamber Commerce & Industry headed by its former president Ed Francisco together with PFFI composed of its president Lolito Lopez, director Roger Py, assistant director and secretariat head Josielin Go, Filipino-Chinese Footwear and Allied industries representatives Andy Cheng, William Castro and Henry Uy gave honor to the foreign investors.

With the Taiwanese delegation's keen interest in the Philippine footwear industry the PFFI, government units and other business sector hopes that the Philippine footwear industry will regain her stature as a major contributor of exports and employment to the country. TFMA vows to come back this year to formalize business interests in the footwear industry.