Road to industrialization seen

Cristobal said industrial roadmap finished and Industry Development Council revived by first quarter of next year.

At least three basic industries – iron and steel, petrochemicals and copper – may start a sustained industrialization of the economy, and consequently increase the share of manufacturing to 30 per cent of GDP by 2016.

Trade Undersecretary Adrian S. Cristobal Jr. yesterday said an industrial roadmap of the Philippines, which would contain the overall or comprehensive industrial strategy of the country – would be ready by the first quarter of 2013. By that time, the Industry Development Council would have been reconvened from its decade-long dormancy.

Speaking to reporters at the sidelines yesterday of the 2nd Philippine Manufactures and Producers Summit at the Hotel Intercontinental Manila yesterday, Cristobal said the economic conditions prevailing make it conducive for these three so-called backbone industries to take off.

Their linkages to one another makes the job a little easier to do, according to Cristobal.

He said although these are just major sectors, they provide the most opportunity for integrating other industries and for bridging gaps in the supply chain.

For example, iron and steel can be re-harnessed as the Philippines has the facility.

Its products go to a wide range of sectors from automotive to construction.

However, the Philippines has failed to come up with an integrated iron and steel industry.

Copper, meanwhile needs forward linkage to increase its value-addition as the Philippines has a copper smelter, Philippine Associated Smelting and Refining Corp. Copper wires are mostly used in electronics manufacturing.

Petrochemicals have a wide range of application, mostly for consumer goods.

The Department of Trade and Industry, Cristobal said, is now consolidating 50 or so industry roadmaps, whittling them down to 20 to be part of the national industrial roadmap.

In a separate interview, Roberto Batungbacal, chairman of the organizing committee of the summit, said the revival of the manufacturing sector is seen to flourish by 2016 where its share can return to 30 percent.

Batungbacal said the full potential of the manufacturing sector cannot be ignored.

Data shows about 75 percent of foreign direct investments that flowed as of the first half went to manufacturing and about 85 percent of products which had been exported are manufactured goods.

Employment of the sector stands at 3.2 million as of July.

But despite this positive contributions, Cristobal said “so much work needs to be done to make the Philippine at par with its counterparts in Asia.” For example, the share of manufacturing to GDP of other countries in the region is 26 to 43 percent.

“The reindustrialization program is not crafted from an ivory tower but on doable, and practical plan,” Cristobal said.

He added the revival of the IDC would be in tandem with the review of the Philippine Development Plan as well as the Investment Priorities Plan for consistency. –IRMA ISIP, Businessmirror