Textile industry revival seen starting with developing tropical fabric niche

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES could revive its textile industry by establishing a niche in “tropical fabrics,” the Board of Investments (BoI) said.

BoI Executive Director for Industry Development Services Ma. Corazon H. Dichosa added that the garments and textile industry roadmap is making slow progress following the disruptions of the pandemic.

“We launched it prior to the pandemic, and the implementation was a bit slow because, first of all, we do not have textiles,” she said on the sidelines of the 2025 National Textile Convention.

She said the lack of capacity is what opens the door to imports.

“I think it is very critical that we revitalize our textile industry … So right now what we are looking at is to start with creating a niche for a lot of tropical fabrics,” she said.

“If we scale it up, (tropical fabrics will be) premium and higher-value … We think that if we want to create a market for our garments again, it could be a starting point,” she added.

Garments from the Philippines used to have a ready market in the US before 1995 due to the Quota Regime, she said. However, the Philippines lost share to China after quotas were removed.

“We have a higher cost of production here, but if we start with tropical fabrics, which are something only available to us and have unique designs, that’s something that we can actually create a niche in,” she said.

“And hopefully that also establishes the Philippines again as another garment player globally and regionally. And then from there, we expand,” she added.

January is Philippine Tropical Fabrics month, organized by the Department of Science and Technology’s Philippine Textile Research Institute (PTRI). This year, the observance centers on circularity and sustainable fashion.

“Circularity is actually our (pathway) to attain a level of sustainability for the textile industry … The use of natural fibers is one step by which we actually eliminate and reduce our dependence on synthetics,” PTRI Director Julius L. Leaño, Jr. said.

“When you talk about exports, you talk about volume, quality, and sustainability. Right now, you won’t be able to export hand-woven products if they’re made of polyester,” Mr. Leaño said.

He said the market is evolving, and the Philippines needs to ensure it is not be “caught flat-footed.”

“This is our strategic competitive advantage, and together with our colorful products and weave patterns, we really have our own niche in global markets,” he added.

He said consumers are part of the solution, because without prodding they tend to buy cheap products.

“Economies of scale are really our arbiter for this kind of industry, particularly for textiles, because as long as your production is small, it is really more expensive,” he said.

Raymond Girard R. Tan, De La Salle University’s Vice Chancellor for Research and Innovation, said the sustainability of the textile industry will not only protect the Philippine environment but make exports more competitive.

“The Philippines exports only about 20% of the output of its textile and allied industries. By comparison, if you look at nearby countries of similar size and gross domestic product, Vietnam exports 50 times as much in terms of dollar value from its textile sector,” he told a panel discussion.

“And what that tells us, even though it seems like bad news at first, is it gives us a sense of how much we can scale up and cause economic growth if we get our act together. There is plenty of potential to create new livelihood opportunities if we can tap into this lucrative export market,” he added.

He said that adapting circularity in textiles will be crucial, as export markets will eventually close their doors to companies that cannot prove that their products are at least minimally green.

“The premium will become smaller and smaller, to the point, for example, that if you’re trying to export to the European Union, companies there are going to have to vet their supply chains (to favor) those that have better practices,” he said.

“I would encourage everybody to think not in terms of sustainability as hindering economic growth, but (as something that) will open doors if we consider just how big the export market is,” he added.