Trade between the Philippines and 11 other Asian markets could triple by 2030, according to the latest research conducted by a US logistics firm.
In an industry study released by the Sandy Springs, Georgia UPS titled “Clearing the Runway for Intra-Asia Trade,” trade growth drivers, potential headwinds, and multi stakeholder action were identified as the factors that could unlock the 2030 opportunity for the Philippines.
The 12 key markets referred in the study were Asia’s major trade markets, which accounts for 88 percent of intra-Asia trade today, and these markets are expected to consolidate the position further.
UPS said trade within these 12 markets could more than double in value from $6.4 trillion in 2020 to $13.5 trillion in 2030.
UPS said Philippines has the potential to build on the rapid growth in the previous decade, particularly in the manufacturing sector, which could see trade with the Asia 12 more than triple from $ 113 billion in 2020 to $393 billion in 2030.
“There are also significant opportunities for Filipino businesses in areas such as digitalization, building supply chain resilience and multilateral cooperation in international trade,” UPS said in a news statement.
Four product segments—retail, industrial manufacturing and automotive (IM and A), high-tech, and health care—accounted for 75 percent of the Philippines’ intra-Asia trade in 2020 and are expected to boost growth.
“The IM and A segment stands to be the largest by value in 2030, more than trebling from 2020 levels as the country aims to serve as a global and regional hub for the automotive and electronics sectors,” UPS said.
Meanwhile, trade in the high-tech segment, which constituted 41 percent of the country’s intra-Asia trade in 2020, could more than double in value, riding the wave of digitalization, which will create significant demand in this segment across Asia.
UPS said Philippine-based businesses can plan for both headwinds and opportunities by diversifying supply chains into resilient trade routes and targeting high-value and high-growth trade routes, such as IM and A, healthcare, and retail trade with economies like Japan, as well in the high-tech segment with Hong Kong and Vietnam.
The company said intra-Asia trade holds incredible potential over the coming decade, anchored on the immense economic success that key regional economies have accomplished in recent years.
The company also said its global network strength and extensive brokerage expertise has been helping Asian governments, industry partners, and customers navigate global trade over the last five decades.