FW
For the first nine months of 2018, Vietnam’s exports increased 17.5 per cent year-on-year, higher than the 15 per cent jump posted in the first quarter.
The domestic sector’s positive export performance contributed to a yearly rise of 15.4 per cent in the country’s nine-month export turnover, nearly double the growth target set for the whole year.
In the period, the US remained Vietnam’s biggest export market, with spending up 13 per cent year-on-year, followed by the EU (up ten per cent) and China (up 27 per cent).
Export of 26 commodities made up 90.3 per cent of the country’s total export revenue.
The country’s import value of commodities in the period saw a modest surge of 12 per cent. Of the sum, the foreign-invested sector’s contribution was up 12 per cent while the domestic sector’s contribution was up 11.7 per cent.
Key import items included electronics, computers and components, equipment and machinery, telephones and components, fabric, iron, steel, plastics, oil and gas, metal, footwear, chemicals, and garment and textile materials.
China was Vietnam’s largest exporter during the period with the turnover up 12.5 per cent year-on-year. South Korea’s turnover was up 1.4 per cent year-on-year while Asean countries’ turnover was up 13 per cent.
US tariffs on imports from China will impact companies in the US, and consumers too. Since it is not yet clear what percentage of the tariffs the companies would pass on to consumers. There might be a split in terms of the company taking part of the hit and passing on part of the cost to consumers as well. Starting from January 1, the tariffs will go from ten per cent to 25 per cent.
China is the largest supplier of textile and apparel to the US market, accounting for about 40 per cent of American imports in the sector. The industry relies on sourcing from China to provide American consumers with affordable and varied choices.
Chinese exporters are feeling the pain as trade tensions between the world’s two biggest economies worsen. China’s surplus with the US has risen to a record while its overall export growth has slowed.
With further large-scale US tariff measures imminent, Chinese exporters will be hit hard and China’s GDP growth rate in 2019 is likely to be dented.
If the US keeps ramping up its tariff measures against China, the export sector will face a long, hard road ahead despite government measures to mitigate the impact.
The textile and clothing sector in Tunisia accounts for 35 per cent of the country’s GDP and offers 161,425 jobs.
Also 95 per cent of Tunisia’s textile and clothing exports are aimed at Europe. Similarly, 82.7 per cent of companies located in Tunisia are totally exporting.
Tunisia was the first country along the southern coast of the Mediterranean to have achieved free trade with the European Union. In the 1990s, Tunisia signed a free trade agreement with the EU to facilitate economic exchanges between the two shores of the Mediterranean.
The textile and clothing industry in Tunisia plays a critical role in the socio-economic development of the country.
Tunisia is among the top 15 garment suppliers in the world, and has the advantage of being close to the European market. It is the fifth largest supplier to the European Union as well as the leading trouser supplier to the EU. Other important products are work wear and lingerie. The main foreign investors in the apparel sector in Tunisia are France, Germany, Belgium and Italy.
EU countries are the main customers of Tunisia for textiles with 36 per cent for France, 32 per cent in Italy, 10 per cent in Germany; followed by Belgium, the Netherlands, the UK and Spain.
The next edition of the Transformers Denim Summit, which will be held in Amsterdam on October 23 and New York on November 27, will focus on innovation. The conference, launched by Andrew Olah, a denim industry veteran, will welcome speakers from a slate of companies that includes Lenzing Fibers, VF Group and Indigo Mill Designs.
The summit will focus on how those companies that survive adapt to new circumstances, create new workflows and influence those around them—all while sticking to their ideals.
Olah has characterised the rate of change in the denim market as sluggish. The show, since its inception around a decade ago, has evolved greatly. Earlier there were green rooms and segments at shows, which although a marketing ploy, was adopted y all companies.
Sanjay K Jain has been re-elected chairman, Confederation of Indian Textile Industry (CITI). T Rajkumar is deputy chairman. D L Sharma is vice chairman.
TT managing director Sanjay Jain has been part chairman of the Textile Sector Skill Council, Northern India Textile Research Association and the Northern India Textile Mills Association and is on the committees of Texprocil, the South India Mills Association and the Cotton Association of India. He is young, dynamic and very articulate in dealing with the core issues of the textile industry. His priority would be to strongly pursue important issues so that the Indian textile industry becomes a significant global player.
T Rajkumar is chairman of the Kerala-based Sri Mahasakthi Mills.
DL Sharma, managing director of Vardhman Yarns and Threads, is also TSC vice chairman and a member of the Confederation of Indian Industry National Committee on Textiles.
CITI has also signed two memoranda of understanding. One is with the National Stock Exchange to create awareness on managing currency risk and raising of equity capital for micro, small and medium enterprises through the stock exchange platform.
The second is with ZDHC for creating awareness among textiles and clothing industry players on zero discharge of hazardous chemicals and addressing environmental issues in a sustainable manner.
ROICA Eco-Smart Family, a range of the world's first responsibly made premium stretch fibers, have created ROICA smart yarns that offer sustainable solutions and awarded with the following certifications:
Global Recycled Standard (GRS) certificate awarded by Textile Exchange for ROICA being constructed with over 50 per cent pre-consumer recycled content. Cradle to Cradle Certified Gold Level Certificate for Material Health Product and Ingredients: For this certificate ROICA yarn was evaluated throughout the supply chain for lower impacts on human and environmental health.
Hohenstein Environment Compatibility Certificate for breaking down without releasing harmful substances.
At the corporate level, ROICA was awarded with the following certifications: Oeko Tex 100, ISO 14001:2004, ISO 9001:2008. Moreover, ROICA mills in Germany achieved the certification of ISO 50001:2001.
Première Vision Paris trade show experienced an 8.3 per cent decline in visitors in September 2018, falling to 55 497 visitors, in comparison to the number of visitors seen in September 2016.
The organisers believe the drop was due to Yom Kippur, which caused the event to be held Wednesday to Friday, as well as due to a change in behavior among brands. As a result, Première Vision SA recommended a tighter and more direct operational teams as well as shorter visit times, while professionals adapt to market instabilities.
This edition, the international attendance was recorded at 72 per cent. This included 11 per cent visitors from was Italy, 7 per cent from UK followed by Spain, Germany, Belgium, the Netherlands and Portugal. The organisers also noted a strong presence of Swedish and Danish visitors. Asia, which represented 14% of total visitors, was represented by a strong Chinese, Japanese and South Korean presence.
North America, for its part, registered a slight decrease with 2,269 visitors, 1918 of whom came from the United States. Turkey also experienced a fall of its presence directly linked to its monetary and economic problems.
According to a survey of more than 3,000 consumers across China, Europe and the US by UBS Group AG, 18 to 35 year olds contributed 85 percent to growth in the luxury market last year and will represent 45 percent of total high-end spending by 2025.
Gucci and Louis Vuitton are the millennial’s favorite brands. While the intent to buy online is higher in the age group than among older consumers, physical stores continue to feature highly among preferred places to shop.
Chinese millennials, a major driving force behind sales growth, allocate about 20 percent of discretionary income to purchasing luxury goods, a similar share as older generations. Younger people in Italy and the US have higher spending budgets than their elders.
The 14th edition of Milano Unica China highlighted the importance of public private partnership (PPP). The exhibition’s success reinforces the international expansion of the Italian business and also boosts the image of Italian-made products in a strategic market like China. The economic commitment of the Italian Government is fully justified by the positive results recorded by the trade show.
Milano Unica China was held in Shanghai from Sept 27- 29, 2018 by Messe Frankfurt. The show featured 42 exhibitors who witnessed positive results in terms of contacts and new orders. New Consul General in Shanghai, Dr. Michele Cecchi also attended the show. He appreciated the quality of the products on display and underlined how Milano Unica is a virtuous example of collaboration between private businesses and public institutions, teaming up to promote the excellence of Italian made products.
Manufacturing Purchasing Managers’ Index, by The Nikkei India, strengthened in September to reach 52.2 from 51.7 in August. A reading of over 50 on this survey-based index indicates expansion, below that contraction.
As per the survey report, underpinning the overall expansion was a firmer increase in levels of new work and gains in both domestic and foreign demand. Moreover, export sales strengthened, with the net gain the best recorded since the start of the year. Firmer gains in new orders, output and employment were some of the factors that led manufacturing record an improvement in growth in September
Rising prices continued to weigh on sentiment as a strong US dollar and supply shortages exacerbated high global prices for steel and fuel.
The survey showed that optimism about future output slipped to the lowest since June.
