Philippines targets $240.5B in total exports by 2028

The government has set an ambitious target to grow the country’s total exports to $240.5 billion come 2028 —the last year of President Ferdinand Marcos Jr.’s term—under a new six-year development plan that aims to transform net importer the Philippines into an "export powerhouse."

Under the Philippine Export Development Plan (PEDP) 2023–2028, launched during the International Trade Forum in Taguig City on Thursday, the total export target for the next six years depends on the growth of the top eight export sectors, which comprise 88.5% of the country’s total exports.

The PEDP sets a total export target of $126.8 billion for this year. Data from the Philippine Statistics Authority showed that total export receipts in 2022 amounted to $78.84 billion, up 5.6% from $74.65 billion in 2021.

The export development plan projects that total exports will grow further to $143.4 billion in 2024 and $163.6 billion in 2025.

Total exports are expected to hit $186.7 billion in 2026 and $212.1 billion in 2027.

By 2028, electronic and electrical exports are expected to contribute the lion’s share with $106.4 billion to the total, followed by the Information Technology-Business Process Management sector with $63.2 billion in total receipts.

Ranking third is minerals, projected to account for $19.4 billion in the next six years, followed by agriculture and agri-based exports at $8.9 billion.

Transport products account for $6.8 billion in projected total receipts. The sixth-top sector is wearables, fashion accessories, and travel goods, with a $4.5 billion total export value.

Chemicals and home furnishings are the seventh and eighth top export sectors, seen to contribute $2.4 billion and $1.4 billion, respectively, come 2028.

The top eight sectors are estimated to account for $213 billion, or 88.5%, of the $240.5 billion in total exports eyed by 2028.

In his remarks, Trade Secretary Alfredo Pascual said the Philippines’ “vast export potential” could be unleashed through the following:

• We need to cultivate an environment that fosters business growth and enables our producers to increase their output of quality products and services.
• We need to empower our industries not just to survive but flourish in a dynamic global landscape.
• We need to leverage the full spectrum of our preferential trade arrangements like the RCEP (Regional Comprehensive Economic Partnership) and our other FTAs (free trade agreements).
• We need to project the visibility of our products and services on the international stage.
• We need to attract investments both domestic and foreign to enhance, expand, and diversify our production capabilities to meet the discerning needs of foreign markets and evolving global supply chains.

“As we march forward with you, our key partners, let us collectively transform the Philippines into a dynamic and agile export powerhouse,” Pascual said.

Employment is also expected to go up under the PEDP as "most sectors are expected to create more jobs in alignment with higher export figures."

The export plan also stated that actions to be taken by the government’s executive branch should be a "whole-of-government crusade," as a number of initiatives "would require legislative action from Congress."

In his speech during the forum, Marcos said that the PEDP calls for "a host of vital government interventions, such as infrastructure, greater ease in doing business, promotion and marketing, financing, and even legislative initiatives, amongst others."

"Considering the magnitude of the task, we can only achieve this through a whole-of-government, whole-of-nation approach. It’s a holistic approach that calls for strategic coordination, with partnerships and linkages within the private sector, with the government agencies, and of course, the international community. That is the only way that we see moving forward," the President said.

"As envisioned under the PEDP, achieving more than double our current level of exports is, in fact, a realistic target. We can transform the Philippine export industry into a significant economic engine that will generate over a million high-quality and sustainable jobs. The Philippines can establish itself as an ‘agile export powerhouse’ by the year 2028," he added.

As of the end of 2022, the Philippines remains a net importer, as the total external trade balance saw a deficit of $58.318 billion, wider than the $42.23 billion trade shortfall in 2021, according to data from the PSA.

A trade deficit indicates that the value of a country’s imports exceeds that of its exports.

The Philippines’ imports last year totaled $137.16 billion, while exports amounted to $78.84 billion. —VBL, GMA Integrated News