DTI-BOI and private sector industry associations now sitting down to talk about sectoral specific issues as they work on their sectoral roadmaps. Kudos to Usec Adrian Cristobal and Executive Director Lucita Reyes and the rest of the BOI who now painstakingly meets with 57 industry associations. See related media reports below for an update and list of industry groups involved in the roadmapping exercise.
If you think your company should be involved, ask your industry association. If you think your industry association should be involved, ask them about it, better yet ask them to contact the BOI.
To better understand DTI-BOI’s plans for these roadmaps, check out their website. I also recommend reading Executive Director Reyes’ presentation entitled Industry Development Action Plan and Process.
April 27, Businessworld:
THE DEPARTMENT of Trade and Industry (DTI) is set to hold meetings with industry groups to draft “road maps” for various sectors in a bid to increase competitiveness and address supply chain gaps, an official on Friday said.
In a briefing, Trade Undersecretary Adrian S. Cristobal, Jr. said the government is scheduled to meet industry associations in 10 sectors from May to June to identify issues which hamper industrial productivity.
These sectors include auto parts, plastics, printing ink, paints and coatings, fine jewelry, coconut and coconut products, engineered bamboo, poultry, hogs and biodiesel. In a statement released on Friday, the DTI said it has met with 57 industry associations and companies, and eight government agencies for road maps so far this year.
April 30, Inquirer:
According to an update report on the 2012 Strategic Industry Development Program, the Industry Development Group (IDG) of the Board of Investments (BoI) had met with 57 industry associations and companies, as well as eight government agencies for the formulation of the road maps, which would, among others, detail what the industries need to be able to better compete in the global stage.
“Most of these organizations have expressed support to the projects and they are now in close and constant coordination with the BoI on the next steps that need to be taken in coming up with the sectoral road maps,” the report issued by the Department of Trade and Industry (DTI) said.The DTI believes that these road maps are “essential in charting the future of Philippine industries for the realization of a comprehensive national industrial strategy.”
Among the sectors that have committed to do their respective road maps are air logistics for cargo, copper and copper products, fine jewelry, auto parts, rubber and rubber products, tool and die, metal casting, coconut and coconut products, hogs, poultry, coffee, medical travel/medical tourism (cancer treatment), retirement industry, flat glass, plastics, paints and coatings, printing ink and garments and textiles.Other sectors that are also looking to do their road maps are chemicals, motorcycle and motorcycle parts, iron and steel, auto, petrochemicals, handicrafts, furniture, BPO/KPO, hotels, mass housing, engineered bamboo and biodiesel.
Yesterday, I watched a video in the ABS-CBN website of ADB Vice President Stephen Groff being interviewed by ANC’s Coco Alcuaz. Stephen Groff stressed the strategic importance of manufacturing in the Philippines, and specifically the need for industry policy and planning. Please watch the video:
This reminds me of Dr. Norio Usui, ADB’s Senior Economist who started talking about the need for structural transformation for inclusive growth in our country. I had a chance to catch up with Dr. Usui in his presentation of the ADB’s 2012 Economic Outlook held at the AIM’s Global Distance Learning Center. It’s the fourth time I’ve listened to Dr. Usui and each time, the I learn something new and the message becomes clearer and clearer. According to Dr. Usui, our slow economic development vis-a-vis our neighbors can be traced to lack of structural transformation, which is to say that we failed to shift labor to higher productivity sectors of the economy. And the sectors with the highest productivity are industry and manufacturing….much higher than services and agriculture.
The good news is both government and private sector are listening. Last year, the DTI re-organized to form a the Industry Development and Trade Policy Group under Usec. Adrian Cristobal. After the 1st Philippine Manufacturers and Producers Summit by the FPI, industry associations started working with the BOI to create industry roadmaps as reported in our previous posts. And we’re not talking about a handful of large well known succesful organizations like SEIPI and CAMPI…..I’m talking about dozens of sectoral associations that never had an industry development dialogue with DTI before, sectors like chemical, paint, printing ink, plastic, oleochemical, adhesives, iron and steel, ceramic tiles, cement. It’s this growing list of manufacturing sectors that can bring structural transformation, needed diversification and industry upgrading to our economy.
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Since the DTI-BOI 2012 Strategic Industry Development Forum last January 27, 2012, a growing number of industry associations are working on their respective roadmaps. For more details go to BOI website’s publication section.
Heading the government’s call, major chemical industry associations including Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK), Association of Petrochemical Manufacturers of the Philippines (APMP), Philippine Plastic Industry Association (PPIA), Philippine Association of Paint Manufacturers (PAPM), Progressive Association of Printing Ink Manufacturers (PAPiM) and Philippine Oleochemical Manufacturers Association (POMA) agreed to combine their efforts to create a Philippine Chemical Masterplan. See Businessworld report, Chemical industry group to draft master plan.
On April 2, Malay Business Insight reported that DTI Usec. Cristobal got the commitment of the Philippine Iron and Steel Institute of the Philippines to update their industry roadmap.
In another report, DTI Usec Cristobal, who also head the BOI says that they have already gathered 38 industry roadmaps that are at different stages of development. He further explained that “This is a not a roadmap for incentives, but the implementation of strategic intervention, not incentives”. For more details, go to the Manila Bulletin article Formulation Of Industry Roadmaps Meant As Direction To Achieve Competitiveness.