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Garment economic zones in the offing
Jan '11
The Philippines government may revive its plans to set up economic zones for apparel exporters on the back of the soaring demand for apparels from China, which is likely to cause factory expansions.

The zones would be required as the efforts to earn duty free access to the US markets have been held up leaving all the predictions of rise in the exports and investments unattained.

However, according to the government officials, they have not dropped the Trade Department's plan to set up garment and textile town which would accommodate an integrated industry and offer income tax breaks and other similar benefits to the members. The department proposed this plan as back as in 2008.

It was intended to set up three economic zones in Cebu, Clark and Cavite regions, where players from the entire garment supply chain, right from the textile units to garment compilers and logistics firms would unite on one platform.

Though this plan for setting up the economic zones was aimed at serving the US orders after gaining the preferential access, but now even in the absence of the same the plan can be utilized for China.

A decision in this respect may be taken within two months after completion of the ongoing analysis.

The retailers of high-end garments in Philippines were eyeing foreign garment suppliers, as the local garment firms having specialization in the bulk market products were not being able to fulfil the rising demand for luxury apparels.

Philippines should use this opportunity and capitalize on the Chinese market by means of its strong hold on the high-end apparels segment.

Fibre2fashion News Desk - India

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