Regional industry roadmaps are seen crucial in strengthening the viability and competitiveness of local businesses in light of the economic integration of Asean economies by 2015, said state think tank Philippine Institute for Development Studies (PIDS).
According to PIDS, having a specific roadmap will allow industries to maximize the growth and profit potential in the region.
"There are cases when a particular sector is seen as promising but is not taking off because of certain government policies. These are part of coordination failures or market failures that are present and which government should need to address. These are also one of the areas where roadmaps are focusing on right now,” said PIDS Fellow and Trade Assistant Secretary Rafaelita Aldaba.
This move is seen helping the government achieve its goals on job generation and inclusive growth, as it sustains the robust growth of the Philippine economy.
These discussions were a product of the regional workshop and consultations on the Asean Economic Community (AEC) held in the cities of Cebu, Davao, and Butuan last year and early part of 2014 with research fellows from PIDS as resource speakers.
Aldaba noted that regional consultations were needed to touch base with regional industry officials.
These exercises are important "in assessing coordination failures, issues that government should address” and in formulating the industry roadmaps.
"It is important that not only the manufacturers are consulted but the agriculture sector as well,” she added.
PIDS Research Fellow Erlinda Medalla, meanwhile, brushed aside concerns about the possible negative impact of Asean integration on local businesses, explaining that this development is not new to market players.
She further described economic integration as a "work in progress.”
"The concept or idea of an Asean Economic Community started a little over two decades ago. AEC has been part of the Philippine trade reality for the past two decades,” she added.
Citing recent reports, PIDS noted in the statement that an executive order for the roadmaps is set to be soon signed by President Aquino.
Industries that submitted roadmaps were the auto assembly and auto parts, copper, chemical, paper, cement, ceramic tiles, iron and steel, biodiesel, electronics, creative, bamboo, shipbuilding, garments and textile, mining, medical travel, processed-food, furniture, mass housing, and information technology.
Tapped by the DTI-Board of Investments, PIDS led in the formulation of a comprehensive industrial roadmap that will facilitate the integration of these different industries, including small and medium enterprises, and transform manufacturing into a major source of growth and employment.
