FW
Vietnam's textile industry has been seeing a strong flow of foreign investment over the first half of the year. Taiwanese-owned Polytex Far Eastern Company has been granted a license to build a yarn factory in the southern province of Binh Duong. It is the largest foreign project in the province in the first six months, with a cost estimate of $274 million for the first stage. Between $700 million to $1 billion is planned for the second stage.
The company’s third textile project in Vietnam is meant to take advantage of the US-led Trans-Pacific Partnership(TPP), which, when signed, will give Vietnamese products duty-free access to major markets. With an investment of $660 million, Turkish-owned Hyosung Istanbul Tekstil has a yarn factory. The British-owned Worldon Vietnam has a $300 million project. These are the biggest FDI projects to be approved in Vietnam by June 20, accounting for 29.2 per cent of the total new pledges during the time.
Vietnam licensed 757 new FDI projects with total pledges of $3.83 billion by June 20, down 21 per cent year on year. Meanwhile $1.65 billion has been registered for existing projects, a year-on-year decrease of 17 per cent.
Cotton USA sourcing fair was held in China from June 22 to 25. The fair provided a valuable opportunity to network and build connections along the global textile supply chain with the goal of increasing US cotton exports. Nearly 120 participants attended the private trade fair, representing 26 fabric mills, 20 garment manufacturers in China, Hong Kong, Taiwan and the Asean region and 18 global brands and retailers.
There was an overview of global raw cotton situation, an update on global sourcing directions and a brief on new consumer-influencing apparel purchases. Prior to the fair, participants attended a briefing session. Cotton Incorporated shared information at a booth to introduce latest innovations, supply chain opportunities and marketing programs.
Cotton Council International (CCI) roped in a variety of participants, especially international brands and retailers representing from the United States, Europe, Japan, Thailand, Korea and Hong Kong, to join the supply chain event and attract fabric mills and garment manufacturers. Among the brands and retailers were: Academy Sports, Blue Pin, Fashion Box, Gerry Weber, Ralph Lauren, Street One and VF Asia.
Turkey's exports to Russia declined 43 per cent between January and April, compared to the same period in 2014. The economic sanctions imposed on Russia after its annexation of Crimea, in conjunction with the devaluation of the Ruble, have created a major crisis for Russian economy. The Russian crisis has spilled over to Turkey, particularly affecting the textile and tourism sectors, as large numbers of Russians on vacation are known to flock to Turkey's southern provinces.The textile hub of Istanbul has hundreds of shops selling apparels at the retail and the wholesale level mainly to Russian buyers.
Despite a major drop in Russian business integral to Turkey’s textile industry, the sector is hopeful that it will make up for its losses in the coming season. The Turkish textile hub has a decade-long history of customers from Russia and other former Soviet states purchasing textile products to sell in their home countries.
Istanbul continues to attract a number of international buying offices, trading houses and major retailers and department stores. Istanbul is becoming a fashion and shopping center. The world’s largest shopping centers are opening in Istanbul. Istanbul is becoming a global sourcing hub for both Asia and Europe.
The textile industry occupies an important place in Turkmenistan’s economy. Turkmenistan traditionally grows cotton, which serves as a basis for developing the industry. The annual turnover of the textile industry is about $400 million as of 2014. The industry is represented by 74 companies: 32 textile complexes, cotton spinning and weaving factories, 17 garment factories, seven silk industry enterprises, two wool processing and three knitted goods enterprises – as of 2013. Numerous textile enterprises worth over $1.6 billion have been built in Turkmenistan throughout the years of independence.
The major part of the products is exported to the US, Canada, Germany, UK, Russia, Italy, Turkey, China, and Ukraine. Companies like Puma, Walmart, JC Penney and others are among the customers. The operating facilities in Turkmenistan have an annual capacity of 1,77,000 metric tons of different yarn, 186 million square meters of various cotton fabrics, 11,000 metric tons of various kinds of knitted fabrics, 7,200 metric tons of terry fabrics and 80 million pieces of knitwear and garments.
The country now wants to restructure its industry in order to increase manufacturing of competitive products and attract investments. The aim is to develop a strong base and build linkages.
Bangladesh is the world’s second largest garment exporting country. But business was badly hit due to the devaluation of euro and shutdowns and blockades. Because of these factors, the garment sector may fail to attain its export target of 33.2 billion dollars in the outgoing fiscal year.
Bangladesh has duty- and quota-free access to many countries, including Australia, New Zealand, Norway, China, India, Canada and the EU. Steps have already been taken for product and market diversification in Latin America and preferential trade agreements have been signed with Brazil, Argentina and Chile to boost exports of Bangladeshi products.
There is a proposal to increase tax at source for the export sector from 0.30 per cent to one per cent for 2015-16. But the industry says, tax at source on export of garments should be reduced to a tolerable level from the proposed one per cent and that instead a high duty should be imposed on imports to protect industries. Considering the current purchasing power parity, Bangladesh hopes to become a mid-income country by 2021.
The government has also been urged to give more attention to prospective sectors like furniture, jute, shipbuilding and pharmaceuticals and give cash incentives to help them flourish.
Nandan Denim's revenues have grown 16.5 per cent year-on-year driven by healthy growth in denim and shirting fabrics. Employee cost and other expenses increased by 135 per cent year-on-year and 48 per cent year-on-year, respectively, mainly due to addition of new capacity and ramping up of export sales team. Subsequently, EBITDA margin expanded by 13.5 per cent and adjusted PAT increased 24 per cent year-on-year.
During the fourth quarter of financial year 2015, domestic sales grew 21.5 per cent year-on-year and exports grew 41 per cent year-on-year. Denim fabric sales increased 19 per cent year-on-year aided by 11 per cent volume growth. Change in the product mix in favor of value-added products drove 8 per cent growth in realisations. The shirting fabric segment also witnessed healthy traction as volumes increased 93 per cent albeit from a low base.
Domestic sales growth is expected to be steady with demand from the readymade garment industry picking up gradually. The company expects revenues to grow at a CAGR of 14 per cent over financial year 2015-’17. The company’s expansion plan is progressing as per plan. On completion of the expansion, the spinning capacity is likely to expand to 124 tons per day from 64 tons per day at present.
www.nandandenim.com/
Unregistered industrial units in Ludhiana and elsewhere have been asked to get themselves registered so they can avail of the benefits of various schemes. In Ludhiana, there are more than 30,000 unregistered industrial units that are spread in different locations of the city. These units are operational in homes or functional in small areas.
Ludhiana is a leading industrial town of Punjab and an important center for textile and allied industry. It is leading producer of woolen and acrylic knitwear, although it also uses extensively cotton and other blended fibers to produce a wide range of fabrics, hosiery, knitwear and readymade garments.
The industry caters largely to the domestic market, although it has also been exporting for nearly a century. Consisting of both registered and unregistered units, almost 99 per cent of the readymade garment, textile and hosiery industry in Ludhiana is small scale. Apart from these, there are a large number of supporting units that manufacture packing material, printed labels, buttons, as also spinning, dyeing and embroidery units.
At one time all enterprises were urged to file an entrepreneur memorandum (EM). However, the manual procedure was ridden with several challenges and was not considered investor friendly. Now a web portal has been developed for online filing of EM to make the process simple.
Indonesia’s local yarn manufacturers, who are struggling to compete with cheaper imported yarns due to higher production costs, have appealed to the government to safeguard locally-made goods. Led by the Indonesian Synthetic Fiber Association (ISFA), yarn manufacturers are petitioning their government to impose a temporary safeguard duty on imported yarn products.
As per the association, many foreign yarn producers have been dumping their products into the Indonesian market, selling them at lower prices in to compensate for weak global demand. There has been a rising demand for textile and garment products in recent years as the middle-class population has grown. But most garments use large amounts of imported yarns. ISFA hope that the government helps the yarn producers until there is a stable supply and demand in the global market.
In 2014, Indonesia’s local textile industry exported $12.7 billion worth of products, a slight increase over the previous year’s level of $12.5 billion. Additionally, the industry imported $8.39 billion worth of products. According to the ISFA, Indonesia’s 2014 total consumption of polyester was 620,000 tons, 135,000 of which was imported. Imports have greatly increased over previous years – in 2010 the country only imported 72,000 tons of polyester. The ISFA predicts that in 2015 the local textile industry will consume 650,000 tons of polyester.
www.fiber-indonesia.com
After the exports of Turkish textile and apparel sector to Greece went up 9.1 percent to $116 million in 2014, the first five months of 2015 concluded with a 19 percent decline, reveals İstanbul Textile and Apparel Exporters Association (İHKİB). The decline is primarily due to bankruptcy news that has hit eadlines worldwide.
Even Footwear Industrialists Association of Turkey (TASD) President Hüseyin Çetin said that manufacturers in Turkey are not favoring long term installment offers due to the high risk since there is no trust in Greek banks. He added that from 2014, Turkey was able to increase its exports by 50 percent to $10 million, while sales in the first six months of2015 were at $5.1 million, and the future outlook is a major concern.
The prospect of Greece leaving the Euro however, would carry severe implications according to Şeref Faya Turkey Clothing Manufacturers' Association (TGSD).
www.itkib.org.tr
Invista has unveiled a collection from emerging designers that explores the fashion potential of outdoor or active wear. The challenge for designers was to incorporate Invista’s breakthrough fabrics and fibers into designs that could live just as comfortably in an outdoor setting as a conference room. Active wear has become common in the workplace. There’s a sizeable shift in corporate culture recently, with active and outdoor wear being embraced by busy professionals.
Invista is one of the largest integrated producers of fibers and polymers. It’s pairing cutting edge designers with cutting edge fabrics. Companies are starting to understand the need for commuter wear and to accept it as part of the working lifestyle.
Both men and women are willing to pay more for added benefits such as quick dry. Lifestyle considerations, such as going from the gym to the workplace to the bar – are fuelling these buying trends. Over 40 per cent of men want better fits, while over 70 per cent of women wear their black workout leggings to hang out in.
A turning point has been the merging of technologies like Invista’s T400 and Coolmax technologies. These fibers are designed to offer the right amount of stretch and freedom of movement needed for biking and hiking thereby providing the perfect foundation for casual business wear.
www.invista.com/
