For unknown reasons phallic sculptures in wood or stone are common in gift shops. A popular novelty gift is the man-in-the-barrel. I won't spoil the surprise, but suffice it to say the same children advisory applies.
Wood carvings
Rice god figurines, traditional ifugao houses and other nice carvings made from hard wood.
Woven articles
Various articles ranging from wristbands and bookmarks through hand bags and rucksacks to slippers, all hand woven.