Trade and Industry Secretary Ramon M. Lopez and Philippine Franchise Association (PFA) President Dr. Alan Escalona signed a memorandum of understanding (MOU) to match franchisers and big businesses for raw material supply deals last 21 July 2016 during the Franchise Asia Conference at the SMX Convention Center.
The MOU, dubbed as the Partnership for Progress Project (PPP), is a cooperative market-matching effort by the Department of Trade and Industry (DTI) and PFA to match DTI-assisted MSMEs nationwide, as suppliers, with member companies of the PFA, as buyers. The cooperation aims to (1) make available a domestic marketing pathway for MSMEs nationwide; (2) provide PFA member companies with a platform to expand their domestic supplier base; and (3) foster bridges of communication and sustainable relationships between buyers and suppliers.
The project aims for the MSMEs to increase production, improve productivity, upgrade standards, expand market, increase competitiveness, and generate employment. It also wants the buyers to replace imports, shorten supply chain, decrease costs, and expand and sustain supplier base.
DTI and the PFA have a common goal: inclusive growth for the stakeholders along the MSMEs along the manufacturing Value Chain. These are the raw materials producers, primary processors, ingredients and components suppliers, the MSME manufactures or processors, Consolidators, Domestic and International Buyers.
This project is directed at MSMEs because there is substantial growth in this sector. About 99% of businesses registered are MSMEs, and the sector contributes 65% of total jobs generated and contributes 37% of Gross Value Added (GVA).