The emergence of new suppliers of furniture in the world threatens the market share of Filipino furniture exporters, an industry official said.
Vietnam has overtaken the Philippines as a furniture supplier to the world market, said
Michael Basubas, president of the Cebu Furniture Industry Foundation.
“In 2000, Vietnam was behind us. Now, they’re ahead of us,” Basubas said.
Vietnam, which started overtaking the Philippines in 2003, averaged 0.78 percent in market share annually from 2000 to 2005, he said.
The Philippines accounted for 0.54 percent, he said, citing a study by the foundation.
Foundation director Laurie Boquiren said the study showed Philippine furniture exports were dropping while those of other Asian countries were growing.
From $316 million in 2002, Philippine furniture exports dropped to $304 million last year, she said.
Cebu’s furniture exports fell from a high of 70 percent of the Philippine total in the 1990s to 40 percent last year, she added.
The drop can be traced to fierce competition particularly from China and Vietnam and to the government’s trade policies and inconsistencies in implementation of rules, Boquirem said.
The private sector failed to upgrade their factories, she added.
The Philippines has been known for design capability but may soon lose this advantage as other Asian countries hire Filipino designers and technical workers, Boquirem said.
In China, she said, an organization of furniture designers and technical workers has 500 all-Filipino members, including 10 designers from Cebu, she said. With INQ7.net
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