FW
In the coming years, many industries in Vietnam, especially those pertaining to engineering, information technology, health care, textiles and footwear, will have a great demand for employees.
In the Vietnam Industry Development Strategy to 2025 with a vision to 2035, the Government has decided to give priority to develop three industries including the processing and manufacturing industry, electronics and telecommunications and new and renewable energy.
The strategy will target key sectors, including electricity, mineral exploitation and processing, construction material production, agro-forestry-aquaculture processing, food, beverage, chemicals, garment and textiles, footwear, electronics, IT, mechanics, metallurgy and petroleum.
The situation shows that the labour force is likely to have more opportunities to seek jobs. Totally, demand for professionalised human resources, the engineering and technology sectors account for the highest proportion with 35 per cent followed by the group of economics, finance, banking, legal and administrative works with 33 per cent; the natural science industry, 7 per cent; and others 3-5 per cent.
According to the International Labour Organisation (ILO), the number of jobs in Vietnam is likely to increase by 14.5 per cent by 2025, thanks to the country’s participation in the ASEAN Economic Community (AEC).
Vietnam is predicted to receive a strong increase of foreign direct investment (FDI) flow especially in manufacturing and IT sectors and food production and processing industries, when the Trans-Pacific Partnership (TPP) agreement is officially signed.
Meanwhile, sectors such as textiles, footwear, handicrafts, electronics, wood and furniture, and aquatic product processing are expected to expand, which will be creating more jobs.
In the international cotton market, prices remain firm though China is likely to extend the cotton auction, which is mainly supported by the tight supply.
Pakistani cotton has begun to arrive on the market, but the quantity is small. Australian cotton output is less than 0.50 million tons. US, Indian, Uzbekistani, West African and Turkish cotton will arrive in November. So international cotton supply will remain tight till November.
For China, state cotton auction can refill the demand, so imported cotton yarn prices continue to be higher than Chinese cotton yarn prices. With the tight cotton supply till November, imported cotton yarn inventory at major Chinese ports don’t amount to much. With lower import volumes and higher prices, Chinese cotton yarn prices are not likely to fall.
With the fall in spot cotton prices, traders show lower interest in auctioning reserve cotton. Cotton supply for textile mills is expected to increase later. Cotton yarn prices are also ticking down.
The weaker sentiment has also passed on the downstream fabric market.
Chinese auction of state cotton may be extended from August 31 to September 30.
Looking at cotton yarn costs calculated by cotton futures, Chinese cotton yarn costs are lower than Vietnamese cotton yarn costs.
After declining in the first fortnight of July, the prices of Brazilian cotton started regaining lost ground and started its upward march in the second fortnight of July.
Although harvesting of the 2015/16 crop was steady and firm, the availability of cotton in the spot market fell in mid-July. This factor pushed the cotton prices upwards.
‘Keeping an eye on international price rises, Brazilian cotton sellers pushed for quicker deliveries in the domestic market, leading to a quickening of pace in cotton trades,’ the Center for Advanced Studies on Applied Economics (CEPEA) said in a report.
Although textile mills were slower in purchasing cotton in late July, Brazilian traders ensured higher liquidity and stability to prices.
In the second fortnight of July, traders searched for batches to accomplish contracts for prompt-delivery, while processors were cautious about buying new batches, concerned with the prices.
Brazilian cotton growers continued harvesting and processing cotton from the new crop but a lack of rains in some producing regions, resulted in a production break, a scenario that concerned growers.
Between June 30 and July 29, the CEPEA/ Escola Superior de Agricultura Luiz de Queiroz (ESALQ) Index cotton type 41-4 delivered in São Paulo with payment in 8 days dropped 1 per cent, closing at BRL 2.63 or $0.8123 per pound on July 29.
Bangladesh is interested in cotton from Australia.
While Australian cotton is expensive for Bangladesh’s spinners, tie-ups between textile companies in Bangladesh and big retail buyers in Australia are proving to be a lucrative and growing channel for Australian cotton growers.
Australia’s trade with Bangladesh has grown steadily over the past few years. With a growing middle class of around 30 million, Bangladesh is also developing as a significant consumer market, while exports account for 25 per cent of GDP.
Bangladesh is the second largest cotton importer in the world and has recorded an annual growth of six per cent since 1990 due to its growing textile industry. It is also the second largest garment exporter in the world, with readymade garments accounting for nearly 80 per cent of the country’s export revenue. Yet, as only 0.1 million bales are produced locally, Bangladesh imports more than six million bales of cotton. This is projected to double within four years and see Bangladesh overtake China as the world’s largest importer of cotton.
Australia is the world’s fourth largest cotton exporter and has earned a reputation as a reliable supplier of high-quality cotton which has almost zero contamination. Short shipping times from Australian ports, in Brisbane, Sydney and Melbourne, to Asian markets provide added advantages.
Grafica Flextronica, a manufacturer and exporter of screen printing machines, has teamed up with Aeoon Technologies, Austria, to market their digital textile printing machines in the Indian market by displaying the latter’s digital textile printing machine at the show.
Aeoon's CEO, Angelo Schiestl, who will be present at KnitShow said that it is true that digital DTG presses were hitherto used for low volume or novelty production, but with Aeoon's new technology, it can now become the industrial production method for garment decoration.
Bhargav Mistry, managing director at Grafica Flextronica, said that both digital and screen printing technologies can co-exist. While digital press can be used for printing spot and CMYK colours even with big quantity, screen printing process would still be required to print high density and special effects.
The Aeoon machine can reach printing speed of up to 950 t-shirts per hour (A4 print size, depending on image and resolution). The machine is available with four or eight print heads that can be configured according to requirement.
Till-date, two Aeoon digital textile printers have been sold in India through their partner Grafica. Since its launch, KnitShow, the one-stop sourcing and selling platform, is getting bigger every year. This year, the show, to be held in Tirupur from 7 to 9 August, will provide an opportunity for garment manufacturers and printers in the city to experience live demonstrations.
Knit Show, organized by City Leaves, is the definitive gateway that shares local knowledge and helps businesses reach out to the textile and garment machinery and accessories market worldwide.
"The UK shook the world with Brexit vote as the country is the fifth largest economy of the global market and second in the EU after Germany. Brexit will not only result in crucial changes for the UK and its economy but also for the whole region. The leaving process is expected to take 2-3 years and is expected to have a major impact on Turkish economy."
The UK shook the world with Brexit vote as the country is the fifth largest economy of the global market and second in the EU after Germany. Brexit will not only result in crucial changes for the UK and its economy but also for the whole region. The leaving process is expected to take 2-3 years and is expected to have a major impact on Turkish economy. As an important partner in both export and imports, the UK counts among crucial markets of textiles and ready-to-wear industries. Experts feel rapid new trade regulations should be developed with the UK as it is set to exit tariff union once Brexit is complete.
Turkey-UK Foreign Trade
The total foreign trade volume between Turkey and the UK was approx imately $16 billion in 2015. Turkey has been importing more from the country since 2001. As per 2015 data, exports from Turkey to the UK were $10.56 billion while imports were around $5.54 billion. Exports to that country increased 80 per cent in the last decade. Turkey’s total exports to the UK were up to $3.5 billion.
Turkey exported textile and RMG, electronic and non-electronic machines, etc to the UK, while importing electronic and non-electronic machines, etc. As an important partner supporting Turkey’s EU membership, the UK is known to have $1.3 billion investments in Turkey.
UK is the second largest market for RMG Turkey’s 13 per cent of total 2015 RMG exports at $17 billion, were made to the UK out of which $2.2 million were achieved as income. Thus, the UK was the second largest market for Turkish garments after Germany. The industry’s exports to the UK was $671 million in January-April 2016. Meanwhile, Turkey imported only around $21.8 million from the UK during 2015.
Textile and raw materials industry exported worth $330 million to the UK in 2015, while the country ranked fifth gaining 4 per cent in textile exports. In January-April 2016, textiles exports to the UK was down 2.8 per cent to around $135.5 million. Looking at imports of textile and raw materials from the UK, it was $76 million during 2015.
New opportunities
According to İHKİB President Hikmet Tanrıverdi, the UK is the second RMG market for Turkey following by Germany, adding that exports were on a positive path during the first 5 months of 2016. Analysts foresee the country will grow 6 per cent less until 2030 following the exit. Therefore, Turkey may see some negative reflections on trade with England. Nevertheless, the country may witness some positive impacts and Brexit may open new opportunities for their exports as well. Brexit will push the UK out of Tariff Union and Turkey and the UK should create a new mechanism for foreign trade rapidly.
UK is an important market for Turkish ready-wear industry, according to TGSD President Şeref Fayat, the country is the only one for which Turkey records foreign trade surplus. He argued that UK leaving Tariff Union and possible duties on Turkish exports will cause negative affects particularly for ready-wear industry. If the UK does not sign FTA with Turkey once it leaves the EU, they may face a dramatic end-up similar to the US, to which our export goods are due to 30 per cent duty.
Vietnam’s textile and garment companies are experiencing tough days with falling turnovers. Some have had to scale down production, while others are facing closure. They have to try to take any job they can to survive. Foreign partners try to force prices down. If the companies don’t accept lower prices, they lose orders. If they do, they incur losses. So companies have to accept a price decrease of 10 to 15 per cent and sometimes 20 per cent for some orders.
Vietnam now has to compete fiercely with Bangladesh and Cambodia. Orders are leaving Vietnam for countries which give support to their enterprises and can enjoy preferential tariffs when exporting products to large markets. Meanwhile, Vietnamese enterprises are burdened with social insurance, healthcare and unemployment insurance premiums. While the profit is modest, just four to six per cent per annum, the cost has increased by tens of per cent.
Vietnam recorded a six per cent export increase in the first half of this year. There was a growth in export value to major markets. Exports to the US rose by 5.9 per cent, to Japan increased by 2.9 per cent, and to South Korea increased by 15.58 per cent.
Knitwear products are not going to be benefitted by the tax slabs proposed under Goods and Services Tax (GST) as the present rate of taxation on textile products is much lower.
However, the Tirupur knitwear cluster as a whole can rejoice when the GST bill finally gets implemented since it would ease taxation procedures through synchronisation of excise duty, state Value Added Tax and service tax uniformly across the country. Said S Dhananjayan, a senior member of Institute of Chartered Accountants of India (ICAI) that rates of taxation for certain products like textiles are only going to scale up under the GST system as present accumulated tax on textile products is in the range of seven to eight percent whereas GST has a cap of 18 per cent.
Pointed out R M Senthil Kumar, a former chairman of ICAI (Tirupur chapter), the transparency in movement of goods would improve as tax payments at various stages could be monitored online under GST which, in turn, reduce the black marketing.
Meanwhile, G R Senthivel, secretary of Tirupur Exporters and Manufacturers Association, feels tax slabs under GST should be brought down from the proposed 18 per cent.
Italian warp knitting seamless (WKS) specialist Cifra reported strong growth in manufacturing orders for some of the world’s leading sportswear brands. The Milan headquartered company says its sportswear business is up around 20 per cent this year alone and is growing rapidly.
Currently Cifra produces between 10,000 and 15,000 pieces of sportswear and athleisure per week, a massive jump from a standing start just four years ago. Previously the company was totally focused on the fashion sector with seamless warp knitted fancy hosiery being its specialisation. But when the hosiery market collapsed it decided to make the strategic move into sportswear.
Now, sportswear accounts for 70-80 per cent of Cifra’s output and it lists Adidas, Lululemon Athletica, Falke, The North Face, Diadora, Biotex, Decathon and Zerofit amongst the companies it manufactures for.
Meanwhile, Cifra owner and CEO Cesare Citterio describes the company’s move into sportswear with warp knitting seamless for its rapid rise in just a few years.
Chemically protective suits made of fabrics coated in self-healing, thin films can prevent farmers from exposure to pesticides, soldiers from chemical attacks and factory workers from accidental release of toxic materials.
Fashion designers use natural fibers made of proteins like wool or silk that are expensive and are not self-healing. The material to be coated is dipped in a series of liquids to create layers of material to form a self-healing, polyelectrolyte layer-by-layer coating. This coating is deposited under ambient conditions in safe solvents, such as water, at low cost using simple equipment amenable to scale-up. Polyelectrolyte coatings are made up of positively and negatively charged polymers.
Many toxic substances can be absorbed through the skin. Organophosphates, for example, which are used as herbicides and insecticides are absorbed through the skin and can be lethal. Some of these chemicals have also been used as nerve agents. A garment coated with a self-healing film containing an organophosphate hydrolase, an enzyme that breaks down the toxic material, could limit exposure.
The squid ring teeth polymer is self-healing in the presence of water, so laundering would repair micro and macro defects in the coating, making the garment rewearable and reusable.
