Pimentel files bill to revive PH Shoe Industry

PHILIPPINES, April 13 - Press Release
April 13, 2025

Pimentel files bill to revive PH Shoe Industry

To revive the Philippine shoe industry, Senator Aquilino "Koko" Pimentel III has filed a bill seeking to establish modern Shoe Manufacturing Hubs across the country, with Marikina City--dubbed the Shoe Capital of the Philippines--set to host the pilot facility.

Under the proposed measure, the Department of Trade and Industry (DTI), in coordination with local government units, will be tasked to identify strategic locations nationwide for the establishment of these hubs.

"The goal is to bolster the country's footwear industry by supporting micro, small, and medium enterprises (MSMEs) through access to shared service facilities and modern infrastructure," said Pimentel, who is running for congressman of Marikina's first congressional district.

Filed as Senate Bill No. 2994, the proposed legislation is titled "An Act Strengthening the Philippine Shoe Industry Providing Incentives to Local Manufacturers and For Other Purposes."

Pimentel highlighted that the country's once-vibrant footwear sector has struggled in recent decades due to modernization gaps, foreign competition, and minimal government backing.

"The Philippine shoe industry, once a vibrant and globally-recognized sector, has suffered a significant decline over the past decades," Pimentel said.

Under the bill, a Shoe Industry Development Program will be created, to be led by the Department of Trade and Industry (DTI), in coordination with the Department of Science and Technology (DOST) and the Technical Education and Skills Development Authority (TESDA).

The program will focus on research and development in shoe design and production technologies, skills training and certification, promotion of local brands in both domestic and international markets, and the implementation of quality assurance and standardization systems.

The measure also grants various incentives to local shoe manufacturers. These include subsidies and grants for capital investments, machinery upgrades, and R&D activities.

Local manufacturers will have preferential access to low-interest loans through government financial institutions, and benefit from marketing support such as participation in fairs and government-run retail channels.

Government agencies will be mandated to procure locally-made shoes, supporting domestic producers.

Tax incentives are also included, such as a 50 percent additional income tax deduction on training and R&D expenses, and import duty exemptions for equipment and raw materials used in shoe production. Manufacturers will also be entitled to tax credits on VAT paid for local raw materials and supplies.

To stimulate innovation and increase production capacity, the bill calls for the establishment of Shoe Manufacturing Hubs across the country. These hubs, beginning with at least one in Marikina City, will serve as dedicated innovation, training, and manufacturing centers equipped with shared service facilities and modern infrastructure.

A nationwide "Buy Local, Wear Local" campaign will also be implemented under the Consumer Awareness Program to promote Filipino-made footwear and encourage public support.

The bill also creates a Shoe Industry Development Fund (SIDF), which will be sourced from 100 percent of tariffs and duties collected on imported shoes. This fund will ensure the long-term sustainability of all programs and initiatives under the proposed law and will remain in effect for ten years.

"This bill seeks to revitalize the Philippine shoe industry by instituting a comprehensive framework to enhance its competitiveness in both domestic and international markets," Pimentel explained in his explanatory note.

The DTI, in coordination with the DOST, DOF, DILG, TESDA and other relevant agencies, is tasked to formulate the implementing rules and regulations within 60 days from the law's effectivity to ensure smooth execution.

"Given the Filipinos' resilience, hard work and creativity, there remains strong potential to reclaim the country's foothold in the shoe industry," Pimentel said.

In line with his advocacy for local shoemakers, Pimentel has vowed to push for the BTS Program or Baha, Trabaho, at Sapatos, which aims to prioritize the welfare of Marikina's shoe industry workers and strengthen the city's position as the country's footwear capital.