Vietnam still enjoys cost advantage in furniture

The 17% tariff the US is poised to charge Philippine goods, while favorable compared to rest of the region, is not enough to overcome Vietnam’s cost advantage in furniture, the Chamber of Furniture Industries of the Philippines (CFIP) said.

CFIP Director General Ajun L. Valenzuela said that the Vietnam price advantage over equivalent Philippine goods is about 40%.

“Vietnam’s prices are much cheaper,” he said in a phone interview, adding: “our price difference with Vietnam is around 40%.”

Vietnam’s furniture exports totaled $16 billion in 2024, against Philippine exports of $200 million.

Vietnamese goods will be charged a 46% tariff starting July if it does not negotiate more favorable terms.

The tariff differential “is also good for us because it will make our prices at par with the Vietnam price, but it is not a solution,” he added.

The so-called reciprocal tariffs imposed on US trading partners announced in early April have been suspended for 90 days. In the interim, the US will charge most trading partners a 10% baseline rate.

According to Mr. Valenzuela, the Philippines still has an opportunity “to attract US buyers seeking alternatives to Vietnamese suppliers.”

“We can rely on our strengths: the unique craftsmanship, the indigenous materials, and the reputation or quality… especially in niche and premium segments,” he added.

The US is the largest export destination of Philippine furniture, accounting for $99 million, or 49.7% of the total. The other top markets include the Netherlands, Japan, Germany, and France.

He said it is possible that Singapore, which was assigned a 10% reciprocal tariff, “may act as a re-export hub for Vietnamese furniture.”

“We know for a fact that Singapore is not a furniture manufacturing country, so they sourced before from China, and now they will be sourcing from Vietnam. So, it potentially dilutes the Philippines competitive edge if rules of origin are not strictly enforced,” he added.

“There is also a risk that Vietnamese and Chinese furniture, now less competitive in the US, could be redirected to the Philippines,” he said.

“This could lead to import flooding, increased competition, and downward pressure on prices here,” he added.

The Philippine cost disadvantage lies mainly in labor, he said.

“The Philippine average monthly manufacturing wage is significantly higher than Vietnam’s. In the Philippines it is $420-$450, while Vietnam’s labor cost is only $300-$350,” he said.

“Labor cost makes it difficult for Philippine producers to compete on price, especially for large-scale commoditized orders,” he added.

He said the industry is also disadvantaged in terms of scale, with Filipino small and medium enterprises unable to expand.

He said high electricity costs are also a concern for the furniture sector, along with the sourcing of raw materials.

“Vietnam benefits from proximity to large plantations and easy access to imported timber through established supply chains, while we rely on imported wood,” he said.

He said that the exemption of wood and wood products under the new US tariff regime will allow Philippine manufacturers to import sustainable and certified solid wood from the US at a very competitive rate.

He said establishing Philippine brands in the US market will require sustained investment in marketing, compliance, and relationship-building.

Source: Business World

Pope Francis' influence on sacred architecture

Pope Francis, who passed away on April 21, may not have written an encyclical addressed to architects, but his pontificate leaves an indelible influence on sacred architecture. His words and actions demonstrated a shift from the Pope as monarch to a pastor, concretized by choosing to stay at the modest Casa Santa Marta. There, he said daily Mass at a common chapel and joined ordinary people in the cafeteria for meals. He compared the Roman Catholic Church to a field hospital to underscore its mission to heal the sick, not only physically but, more importantly, spiritually.

Sanctuario De La Salle.

The Manila Times interviewed architects Bong Recio and Carlos Arnaiz about the place of spirituality in their architectural practice. Recio, who was involved in designing the Church of the Gesu at Ateneo de Manila, seeks "spiritual guidance when designing spaces such as places of learning. Unlike commercial projects, these spaces provide the environment that will help shape future lives; thus the importance of relevant design in this case."

Arnaiz, who designed Sanctuario De La Salle in Biñan and who studied philosophy before architecture, felt that "the spaces we build are our reflection of the ideas we have about our world. We try to ground our work every day on questions of how self and community relate to the mysteries of the spirit."

Both architects demonstrate what can be called Pope Francis' architecture of pardon, one of the concrete fruits of the extraordinary Year of Mercy the late pontiff declared in 2016. Not a few churches here and abroad were built following the idea of compassion to communicate openness to everyone. The Chapel of the Eucharistic Lord at Megamall, with a designated space for children, encourages invitation rather than insulation and exclusion.

Church of the Gesù in the ADMU campus.

Other transformations in church buildings that architects and this writer have observed are the following: a greater dominance of the image of Christ, like the enormous cross at the Chapel of the Sacred Heart in Powerplant; the presence of water features, symbolizing the "fountains of divine mercy," like the holy water fountain at the Church of the Gesu; more commodious spaces for the Sacrament of Reconciliation; and as seen at the Sto. Niño de Paz Church in Makati commercial center, improving on the dingy water closet style that was uncomfortable both for the confessor and penitent.

Pope Francis' Laudato Si, his encyclical on the Earth as Common Home, stands to influence construction significantly. According to Recio, "For too long, development, instead of enriching people's lives, seems to have been having the opposite effect. As developers build taller buildings, cities have become more dense, with projects oftentimes promoted as green developments. Sustainable architecture is very much on the rise, but I feel not enough is being done. I am recalling what I just read this morning about 21 reclamation projects in Manila Bay: two ongoing and 12 approved. Where will it end?"

A few weeks before his death, Pope Francis allowed the advancement of the cause of sainthood of Antonio Gaudí, the architect of Barcelona's Sagrada Familia. Arnaiz said of the latter's accomplishments: "The manner in which he harnessed the inventiveness of structural materials, such as steel reinforced concrete. Understanding the hidden geometries that make these materials perform and stimulate, while at the same time being an homage to the natural world. These surround us by creating columns that resemble trees' courtyards that feel like underwater, environments, and windows and doors that remind us of the mouths and eyes of animals."

Calling Gaudí both a saint and a pioneer for architects, Arnaiz said that he has dedicated his practice "to find contemporary translations of this blend of technology and ecology for our 21st century."

Pope Francis has changed the grammar of church architecture to one that conveys God's closeness and clemency, as well as a commitment to love the earth and nature.

Source: Manila Times

How street design helps reduce road accidents

UN Global Road Safety Week takes place from May 10 to 14.

A few weeks ago, a road accident went viral on the Internet. It showed a car speeding into a blind intersection when a motorbike crashed into the side of the car. Due to the strong impact, the biker was thrown up in the air and over the car. The biker was seen lying on the sidewalk with a badly injured leg.

The accident could have been prevented if only both parties had taken precautions as they approached the blind corner.

According to the Philippine Statistics Authority, there were 11,096 deaths in 2021, up by 39 percent from the deaths recorded in 2011. Road traffic injuries are the leading cause of death among Filipinos 15 to 29 years old. It is also a major killer among children.

Many of these deaths occur on urban roads and are preventable accidents caused by behavior as a result of street design.

Creating safe streets

Local governments in collaboration with designers, engineers and regulators are responsible for creating safe streets. As long as street designs encourage high speeds and prioritize automobiles and other motorized vehicles over pedestrians and other vulnerable users, streets will never be able to provide safe environments.

Many traffic fatalities are linked to street design. With the addition of speed, the conditions become more dangerous.

Some common causes of traffic accidents and fatalities include:

* Sidewalks that are not usable, narrow or non-existent which force pedestrians to walk along the road exposing them to danger.

* Pedestrian crossings that are non-existent or are inadequate.

* Lack of protection: Wide, multi-lane streets without refuge spaces expose pedestrians, especially the elderly, to moving vehicles for longer distances as they cross the street.

* Large intersections that are often designed for dangerous, high-speed turning. Lack of visibility results in poor navigation and assessment of different road users’ movements.

One effective strategy to address the problem of speed which makes road conditions dangerous is by adopting what is known as traffic calming.

What is traffic calming?

Traffic calming, first developed in Germany, involves implementing design features to slow vehicles as they move through urban, commercial, and residential neighborhoods.

It makes humans a priority over cars, something that runs counter to the idea that streets are made primarily for vehicles to travel on, and to get to their destination as fast as possible.

A traffic calming project is aimed at reducing and minimizing the risks posed by vehicles. It involves implementing road design features and strategies to cut down traffic speed and volume and allocate more space for pedestrians and cyclists. At lower speeds, the surroundings are more visible to the drivers and they have more time to react to unexpected events and can stop in a shorter distance.

Narrow lanes reduce speeds and minimize crashes on city streets by reducing the right of way and making drivers wary of traffic and adjacent users.

A traffic calming project can be something as simple as minor modifications on a specific street to a more comprehensive engineering redesign of a road network.

Traffic calming is “founded on the idea that streets should help create and preserve a sense of place, that their purpose is for people to walk, stroll, look, gaze, meet, play, shop and even work alongside cars—but not [be] dominated by them.”—Project for Public Spaces.

Examples of traffic calming strategies

Lane narrowing

Narrow lanes reduce speeds and minimize crashes on city streets by reducing the right of way and making drivers wary of traffic and adjacent users. Use the additional space for pedestrian space, cycle facilities, or green infrastructure.

Corner radius

Narrowing corner radii reduce vehicle turning speeds as well as pedestrian crossing distances. Minimizing the size of a corner radius is critical to creating safe and compact intersections.

Buildings and trees

Buildings at the right of way with articulated facades and windows indicate that a street is in an urban environment, not a highway.

Gateway treatments

Gateway treatments alert drivers that they are entering a slower area. This treatment may include signage, entry portals, speed tables, raised crossings, and curb extensions.

Mini roundabouts (or rotundas)

Mini roundabouts are round islands at intersections that serve to both reduce speeds and organize traffic, routing vehicles around the island rather than directly across the intersection.

Major considerations before traffic calming is implemented:

Is the area used by emergency, service vehicles, and school buses?

Is the area a residential, commercial, retail, entertainment, or other?

Are the users, the elderly, disabled people, and children?

Buildings at the right of way with articulated facades and windows indicate that a street is in an urban environment, not a highway.

Will the area be undergoing improvement?

Which roads are potential areas for the traffic calming?

Many countries such as the USA, the UK, Germany, Canada, Netherlands, Sweden, Australia, New Zealand and others have planned schemes to carry out the traffic calming process.

When road accidents occur, the usual response is to blame the driver, the cyclist or the pedestrian. It is about time we realize that our roads without traffic calming features may be the silent killer that we need to focus on. It is now up to decision makers, technical experts and communities to start saving lives.

Human life is our greenest resource, right?

Source: Inquirer