FW
As per a report of the European Apparel and Textile Confederation (EURATEX), China’s share in the imports of goods from the European Union has been decreasing over the years.
While in 2010, its market share of EU textiles and clothing imports stood at 40.8 per cent, it plunged to 35 per cent in 2015.
Besides, Mediterranean countries, which have long enjoyed the advantage of their proximity to the EU-28, have experienced the same scenario as that of China. Its share has contracted from more than 20 per cent in 2009 to 18 per cent in 2015. This has benefited SAARC zone… From 19 per cent in 2010, its market share of textiles and clothing imports in 2015 was 24.6 per cent.
The report also mentions that the ASEAN zone, which is smaller than the SAARC area, showed enough drive and economic dynamism to escalate its share of textile and clothing imports from over 6 per cent in 2010 to 8.6 per cent in 2015. Totally, these four zones accounted for 86 per cent of total extra-EU textile and clothing imports in 2015. Clothing products represented 80 per cent of total imports, a +10.5 per cent gain in value terms.
Products-wise, China came up tops as the top supplier of woven garments’ imports. However, its share continued to decline at 37.6 per cent. The Mediterranean countries also witnessed decline in this segment ending up with a 16.5 per cent share.
As unions, employers and government officials in Cambodia met for the first time in the run-up to the annual battle over the garment industry’s minimum wage yesterday, another group of labour and advocacy groups came asking when they would be part of those discussions.
Meeting at the Phnom Penh’s Sunway Hotel, union organisers from sectors as varied as construction, food services, tourism and manufacturing discussed a variety of approaches – from a flat minimum wage that would span all industries to a more measured sector-by-sector approach – to push on the national level.
While there have been no formal discussions on creating a national minimum wage in Cambodia, a Labour Ministry spokesman had said way back in February that the yet-to-be-drafted minimum wage law will look into expansion of the wage to other sectors.
Country director for worker advocacy group, Solidarity Center, William Conklin said that the meeting was driven by an increasing sense of urgency among non-garment sector unions, eager to stake out their positions on the minimum wage going forward.
Here it may be noted that Vietnam currently has four minimum wages based on geographic areas with increases mapped out over a five-year period while both Thailand and Malaysia have their own national minimum wages.
Article 104 in Cambodia’s Labour Law stipulates that wages in the country “must be at least equal to the guaranteed minimum wage; that is, it must ensure every worker of a decent standard of living compatible with human dignity.”
Foreigners working in apparel and other factories in Bangladesh in different industrial zones in and outside the capital are now under extensive security vigilance following the recent terrorist attacks.
Foreign experts from 20 countries, mainly from India, Sri Lanka, Pakistan and China, are currently working in the garment, textile and leather factories. Most of them are serving as consultants, quality controllers and supervisors, designers, human resource officers and marketing officers.
There are around 4,350 foreigners. Of these foreigners, some 7,920 are from India, 2,612 from Pakistan, 2,873 from Sri Lanka, and more than 2,800 from China.
Full-time security is being provided to global buyers and retailers during their stay in Bangladesh.
In the Gulshan café attack nine Italians who were involved in the garment business were killed. Foreign buyers have started postponing their scheduled visits to Dhaka for business negotiations, citing security reasons. In many cases, buyers have asked their local agents to be present in a third country for meetings along with representatives from other exporting countries.
Some 26,600 foreigners have taken work permits to work in Bangladesh during the last five years and most of them are employed in the readymade sector.
As for foreign nationals who have entered illegally, they will be brought under the legal procedure and allowed either to stay in Bangladesh or will be pushed back to their respective countries.
"The Bangladesh government is taking a major step to show that the right lessons have been learned, after the numerous RMG factory accidents. Besides the Accord/Alliance restructuring and safe-guarding programs, another RMG rescue plan is being implemented which also seeks defensive and insurance-driven priorities; unlike the Accord/Alliance and other similar pursuits, this one creates a fund with two accounts (beneficiary and contingency) for future exigencies."
The Bangladesh government is taking a major step to show that the right lessons have been learned, after the numerous RMG factory accidents. Besides the Accord/Alliance restructuring and safe-guarding programs, another RMG rescue plan is being implemented which also seeks defensive and insurance-driven priorities; unlike the Accord/Alliance and other similar pursuits, this one creates a fund with two accounts (beneficiary and contingency) for future exigencies. While the former facilitates grants that workers and their family members may dip into, the latter would look after group and health insurance premiums as well as remuneration during work stoppages.
The fund would be fed by a .03 per cent payment of all RMG export freight- on-board (FOB) price and any voluntary contributions from the government and buyers. It stems from the amended 2013 labour law that was effective as of September 2014. Behind that amendment was the argument that export-oriented sectors should have a welfare fund.
A move in the right direction
The Bangladesh government is taking a major step to show that the right lessons have been learned, and must be applauded. It must also see this as a ‘first’ step: subsequent steps should be to make government contributions permanent, for example, match every RMG taka with one from the national coffer; and ramp up periodic (even unannounced) inspection visits just to see if the new installations remain functional. Both these "subsequent steps" would be an investment into the country's future health: it would show the respect even workers need, breed incentives within their families, and thereby across the country, and offset external complaints that we are more callous than caring. Taxing luxury consumption to pay for the extra dip into the national coffer could be a good step, since the key beneficiaries of RMG assembly line workers are none other than businessmen who, by and large, disproportionately purchase luxury goods. Once the businessman is taken out of the equation, the country itself becomes the key beneficiary.
The government could start raising the ante for central funds with incentives to other private contributors, in the same way: tax exemptions can be given for each contributor to the extent of each contribution, not only for the actual contribution but also that same value of other income of the contributor. Wealthy Bangladeshis would be motivated, as too foreign buyers and investors.
A win-win situation
Bangladesh’s RMG central fund can be seen as an equivalent of the ‘poor laws,’ but like those other countries, should deepen into other forms, legislations, and measures.
A win-win outcome awaits both the RMG sector and the country if all the players make the correct move selflessly, not just the government with the fund, but, and more particularly, the RMG owners with much-needed reforms, as outlined in the post-Tazreen, post-Rana Plaza Accord/Alliance formula. As of May 2016, out of the 1,452 Accord/Alliance inspected factories, seven had completed the reforms fully, 57 were close to a full-reform completion, and 1,388 were still behind. Out of its $50 million five-year budget, the Accord/Alliance has spent $30 million, yet the future is open to immense opportunities even with such large expenditures. As Bjorn Lomborg of the Copenhagen Consensus Center noted, full reform compliance would cost Tk 234 billion, yet since the 2021 target of exporting TK 3.9 trillion ($50 billion) worth of RMG products is possible, earnings would be 14 times higher than costs, and the creation of any RMG special zone, as is being planned, would add 300,000 new jobs in 142 new factories for only Tk 1.3 billion, but eventually fetch Tk 312 billion of new income.
Several Chinese exhibitors will be showcasing yarns, fabrics and garment accessories at a special Chinese Pavilion at the second edition of Yarn, Fabric & Accessories trade show (YFA) from November 23 to 26 at the NSIC Exhibition Complex in New Delhi. YFA 2016, aims to redefine the way fibres, yarns, fabrics and apparel accessories are sourced and bring renowned suppliers from these four segments closer to buyers and also offer buyers a one-stop place to source all their requirements.
YFA 2016 will feature fibres to yarns and fabrics and accessories. The exhibition space will double from one to two halls. Additionally, WGSN, the global authority on fashion trends will be the trend partner, and will be putting up its pavilion. The 2015 edition, saw 100 exhibitors and more than 7,477 visitors. For this year’s show, the organizers expect over 250 brands from several countries and more than 15,000 visitors from 15 countries.
Their optimism stems from the fact that with four months to go, 75 per cent of the space has already been booked. It is also heartening to note that several exhibitors who exhibited at the 2015 show like Indorama Synthetics, TT, Asahi Kasei Fibers from Japan, are returning for the 2016 show. New exhibitors who have confirmed their participation include Bhilosa Industries, National Textile Corporation (NTC), Vardhman Textiles, RSWM, King Lace etc.
Aiming to develop skills of small plain land ethnic groups and absorb them in the garment industry, the government and garment manufacturers in Bangladesh have signed a Memorandum of Understanding (MoU) to impart training to them in oven-knit machines.
The MoU was signed by the Bangladesh Garment Manufacturers and Exporters Association – Skills for Employment Investment Program (BGMEA-SEIP), Access to Information (a2i) Program and Rainganj Computer cum Technical Training Institute at the in the Prime Minister's Office. As per the MoU, the a2i programme in PMO, with the support of SEIP and BGMEA will organize different courses on ‘Skills Development and Employment’ for minor ethnic communities living in plain land.
While the SEIP will provide training supports, the BGMEA has agreed to provide decent jobs in the RMG sector to successful candidates on completion of the training at the Raiganj Computer and Technical Training Institute in Sirajganj. There will be two skills development courses of two months duration viz Oven Machine Operation and Knit Machine Operation on a pilot basis at Raiganj Computer Thirty students will be accommodated in each course and later the initiative will be expanded to other training institutes/centers depending on the success of the pilot programme.
Cambodia’s Commerce Minister Pan Sorasak has told the British Ambassador Bill Longhurst that he would like to see the two countries enter a free trade agreement (FTA) as soon as possible following Britain’s decision to leave the European Union (EU). Cambodia does not have an FTA yet with Britain, therefore the minister wanted to push for one as soon as possible.
The feeling is FTA between Cambodia and Britain would strengthen bilateral trade and economic ties following Britain’s June 23 vote to leave the EU. Britain is expected to respond to Cambodia by the end of the year or early next year since it is in the stage of transformation after it leaves the EU.
The EU is one of Cambodia’s largest trading partners after the United States and more than 40 per cent of the country’s exports head to Europe. Cambodia’s EU exports are given preferential treatment under the ‘Everything but Arms’ initiative for least developed countries.
Britain has yet to evoke Article 20 of the EU treaties to formally leave the European Union and observers point out it could take at least two years.
Aimed at creating visibility for the smart textile industry and position Canada as a global leader in this emerging sector, the National Research Council of Canada (NRC) has teamed up with industry members to officially form the Smart Textile and Wearables Innovation Alliance.
Facilitated by the NRC, this industry-led, grassroots initiative will encourage the formation of supply chains to enable the development and commercialisation of next-generation technologies in targeted areas such as sport and fitness, self-care and wellness, medical diagnostics, industrial wearables and interactive tracking. The Alliance will regroup 34 Canadian companies from all levels of the supply chain to share ideas and develop products that will revolutionize the smart textile industry.
Smart textiles and wearables have digital components, including small computers, sensors and electronics, embedded in them and give them added value, such as communication, data collection and energy transfer. The importance of information sharing within its membership is underscored by such networking events planned for Vancouver on September 30 and Montréal on October 19. The focus of both events will be networking and matchmaking.
In a landmark decision, the Sri Lanka government has decided to allot India and China with Special Economic Zones to set up industries. This was disclosed by the Sri Lankan minister for international trade and strategic development, Malik Samarawickrama.
The Indians would be setting up pharmaceutical and auto parts industries in their zone. However, the location for the Indian SEZ is yet to be finalized. On the other hand, the Chinese have asked for 55 sq km (15, 000 acres) of land in the Hambantota area in the Southern Province for their zone. Their request is being processed, he added.
An Indian delegation would visit the island to begin talks on a framework for the Economic and Technical Cooperation Agreement (ETCA). A week after that, a Chinese delegation is expected for talks on a Free Trade Agreement (FTA). The Sino-Sri Lanka FTA is likely to be signed in 2017. An FTA with Singapore is also on the cards.
Three day Textile Expo Uzbekistan will open its doors to international buyers on Septmeber 7. The exhibition will take place at Uzexpocentre, Tashkent, Uzbekistan. The exhibition is being organized by the international exhibition company ITE Uzbekistan (Uzbekistan) and its partner, the ITE Group of companies, the leading organizers of the specialized trade exhibitions along with MODA UK, Scoop, Jacket Required, Bubble London, Lingerie Expo among many others.
This year, the exhibition will have national pavilions of Uzbekistan and India.The expo is the only specialized international trade fair of the textile industry in Uzbekistan and is a successful business platform for buyers and sellers: industry professionals from around the world. Major textile and RMG manufacturers and exporters of Uzbekistan take part in the show annually to demonstrate the widest range of products from yarn to finished products. About 30 leading Uzbek companies are lined up to participate in the exhibition this year.
Children, men, women RMG, hosiery products, sportswear, clothing for sleep and rest, home textiles, terry products with the label ‘Made in Uzbekistan’ are readily available in the pavilions of well-known trade chains of Auchan, C & A,Walmart, Quelle, Primark and Russian chains like Pyaterochka, Sportmaster among many others.
For professional visitors, that include wholesale buyers, a special buyer programme has been devised within the show’s framework for the last four years. In the last four years, the show was attended by over 200 major buyers from Russia, Ukraine, Belarus, Kazakhstan, Turkey, China, India and other countries.
