Cebu exporters can get assistance in tapping the Chinese market from the Philexport-Cebu China Help Desk, when it opens at the end of the month.
“We are in the finalization period of our talks. and we expect to have the desk set up by the end of April, “ said Fred Escalona, Philexport-Cebu executive director, yesterday.
This is a partnership with Business One Global Trade Center (B1GTC) for at least two years, he said.
Two Chinese-speaking marketing personnel will be hired and trained in China for the help desk.
“After we set up the desk by end of this month, we will start screening applicants for the two people we will be hiring for this project,” he said.
They will be sent to China to learn about the local business landscape and other information that will be helpful for Cebue exporters.
B1GTC is a part of the Global Trade Center Holdings network, which provides integrated one-stop trading services for international manufacturers entering the Chinese market. Services include exhibition, logistics, order solicitation, trade financing, tax, accounting and legal consulting.
The help desk will occupy the space left by Cebu Gifts, Toys, Housewares Manufacturers and Exporters Association Inc. (Cebu GTH) desk at Philexport-Cebu’s office at Legaspi Street, Cebu City.
Cebu GTH has transferred to the Ang Tindahang Pinoy shop at the Bridges Town Center in Mandaue City.
In February this year, B1GTC executives held a forum for Cebu exporters about the potential of the $1.4 billion China market.
B1GTC chief executive officer Henry Hwang encouraged the small and medium enterprise sector saying the middle market in China is fast expanding.
He said the Chinese are not brand conscious and generally see imported products as being of high quality.
With the Chinese government’s move to reduce import taxes, Hwang said this reduces the barrier to trade and makes favorable for imported products to enter.
Products such as furniture, home décor, fashion accessories, fresh and processed food products and seafood are in demand in China, while retail in China is one of the most attractive segments to tap, he said.
The top five Philippine products exported to China include electrical products, copper cathodes and sections of cathodes, nickel ore and concentrates, coal and copper ores and concentrates.
Trade Secretary Gregory Domingo said metal exports decreased in the next two years with non-metal high-value products replacing them as the country’s top export products.
Escalona said with Cebuano exporters having many products to offer the Chinese market, setting up the Philexport China Help Desk would be their entrance to one of today’s biggest and most dynamic market in Asia.
According to 2011 data of the National Bureau of Statistics (NBS) in China, the total retail sales value of consumer goods in China’s domestic market amounted to 18.1226 trillion yuan RMB, an increase of 17 percent compared to the same period last year.
Sales value of furniture went up by 9.9 percent, building and decorating materials also increased by 9 percent while, hardware and electronic materials increased by 9.7 percent and an increase of 3 percent for the automobiles.
Sales of foodstuff and clothing showed a rapid increase in 2011 of 3,000 key retailers monitored by the Ministry of Commerce Peoples Republic of China (MOFCOM)increased by 17.9 percent and 18.5 percent respectively.
Based on 2011 data, the top five export markets for the Philippines are Japan, the United States of America, China, Singapore and Hongkong. Japan recently took the top spot from the United States of America in the list.
Total export trade volume of Japan last year amounted to US $8.8 million which is an increase of 13.07 percent from the previous year.
Trading volume in the Unites States of America decreased by 6.17 percent with only $7.09 million in 2011.
Trade in China increased by 6.6 percent from only $5.7 million in 2010 to $6.1 million last year. Singapore closed with $4.3 million last year which is an increase of 41.55 percent while HongKong decreased by 14.69 percent to only $3.7 last year.