The report provides a holistic approach to the post-COVID-19 recovery that brings out opportunities for the Philippines. In recent decades, the World Bank (WB) identified the Philippines as one of the many countries that have climbed the Global Value Chain (GVC) ladder.
There are three industry clusters where the Philippines could benefit the most from the reconfiguration of its leading exports or expand its participation in the GVC as follows: (1) Industrial, Manufacturing, and Transportation (IMT) cluster; (2) Technology, Media, and Telecommunication (TMT) cluster; and (3) Health and Life Science (HLS).
Department of Trade and Industry Secretary Alfredo Pascual exclaimed that those recommendations were the industrial clusters they sought to prioritize to drive the country’s growth. Likewise, they have added the Modern Basic Needs and Resilient Economy cluster, fostering economic resilience and long-term sustainable and inclusive growth. Such policies will continue to boost the Philippines participation in the GVC ranking.
The Philippines should strengthen its position in key GVCs and understand the future trends and drivers of change. These will enable the government to respond to changes by realigning existing policies or crafting new policies to maximize the benefits of GVC reconfiguration. This will also support our exports into industry clusters. Thus, these actions will contribute to the Philippines, making it a more attractive investment destination.
The WB Report, “A New Dawn for Global Value Chain Participation in the Philippines,” was released in Makati City last October 6, 2022. AOB