The Global Value Chain (GVC) study of the automotive, aerospace, chemicals, electronics & electrical machinery, and paper industries conducted by the Center on Globalization, Governance, & Competitiveness (CGGC) of Duke University was presented on June 02, 2016 at the Makati Diamond Residences with the theme: Enhancing Philippine Participation in Global Value Chains: Upgrading Trajectories for Industry Development. The study is part of the technical assistance from the STRIDE Program and COMPETE Project of USAID.
“The new industrial policy of the Philippines is to upgrade and improve the competitiveness of our industries and it is important not only to enable us to achieve inclusive and sustainable growth but also to enable us to face stiff competition given the increasing globalization and regional economic integration and this new industrial policy is global value chain focus” according to Dr. Rafaelita Aldaba – Assistant Secretary, Industry Development Group, DTI.
“They will be positioning, they will be mapping these industries in the global value chain and also they will be offering us upgrading trajectories, upgrading in the sense that they will be covering not only product and process upgrading but also functional and chain upgrading” added Dr. Aldaba.
The Duke University consultants led by Dr. Gary Gereffi presented the Analysis on Global Value Chains for Industry Development while the Philippine Participation in GVCs: Analysis and Findings and Policy Recommendations for Entry and Upgrading in Manufacturing GVCs were discussed by Ms. Penny Bamber and Ms. Karina Fernandez- Stark respectively.
Moreover, Dr. Aldaba said that “These are really important studies. They would allow us to position ourselves in the global value chain. How can we help, how can we provide support to new companies, to new industries that are trying to lodge themselves into GVC. SMEs in particular and how existing firms can move up along the global value chain. So these are really very important studies and as you know the growth of the manufacturing industry has never been this good. While in the past the growth of the economy has really relied so much on services but in the more recent years, the growth has really been driven substantially by the manufacturing industry. From 2013 up to 2016 1st quarter, manufacturing growth surpassed services for nine (9) quarters; the average is 8.1% while services’ average growth for the same period was about 7.9% “.
Industry champions from the electronics and electrical (SEIPI), automotive, aerospace (Aerospace Industries Association of the Philippines), chemicals (Samahan sa Pilipinas ng mga Industriyang Kimika) and pulp and paper were invited to provide the key points of discussion in these industry-specific presentations.