The textile industry and apparel (T&A) industry in Vietnam needs to capitalise on its global position to maintain momentum and compete effectively in the international market, opine industry experts. 

Despite witnessing growth in exports, Vietnam’s T&A industry continues to face significant challenges due to rising market demands and evolving customer expectations.

The industry witnessed a 6.2 per cent Y-o-Y rise in exports in the first eight months of FY24 bringing the total export revenue to $28.3 million during the period.  

In Aug ’24 alone, Vietnam’s textile and apparel exports revenue reached $4.3 billion, as per Vu Duc Giang, Chairman, VITAS. Giang attributes this growth to the shift in global orders toward Vietnam, driven by factors such as the US-China trade war, conflicts in Europe, and instability in Bangladesh, a key apparel exporter. He notes, the current growth presents an opportunity for Vietnam's textile industry to set new export records.

Emphasising on the industry long-term strategy to diversify its product range, Giang also acknowledges the challenges faced including the rising volume of orders and the need for businesses to adapt to new purchasing strategies from global partners. He emphasises on the importance to enhance connectivity across the supply chain, from raw materials and machinery to marketing. Giang also highlights the need to adopt advanced technologies and artificial intelligence to boost productivity, improve quality, and create distinctive products.

Nguyen Van Hoang, General Director, Dong Tien JSC, points out, the shift is also happening domestically, with more partners prioritising factories that comply with environmental, social, and governance (ESG) standards. He notes, the industry is increasingly emphasising on sustainability and ethical production.

Jimmy Qiu, Vice President of Jack Technology, emphasises on Vietnam's growing significance in the global textile-garment supply chain, attributing the country’s success to its rapid adoption of smart technologies and green production practices.

Pham Van Viet, Chairman, Viet Thang Jean Co (VitaJean) and Vice President, Ho Chi Minh City Association of Garments, Textiles, Embroidery, and Knitting (Agtek), remarks, Vietnam's competitive edge no longer lies in low-cost labor. Instead, the focus has shifted toward optimising science, technology, and digital transformation. He underscores the need to establish clear policies and strategies to ensure a smooth transition to new market dynamics.

Viet also emphasises on the importance of building a domestic textile-garment supply chain through high-tech systems at every stage—from raw material production and weaving to design, sewing, and branding. However, his transformation requires substantial capital and human resources, particularly in terms of technology innovation and workforce training, he acknowledges. He urges small and medium-sized enterprises (SMEs) to support in this green transition through technology upgrades, and design capabilities.

Additionally, Viet highlights on the need to strengthen communication efforts to enhance the branding of both individual companies and the national textile industry, ensuring a strong global presence.

In a meeting attended by Jam Kamal Khan, Commerce Minister, and Awais Ahmed Khan Leghari, Power Minister, Pakistan’s Board of Investment signed an MoU with Chinese textile giant Ruyi Shandong to establish international-standard textile parks in Pakistan. The MoU signed in the presence of Shehbaz Sharif, Prime Minister and a nine-member delegation from the Ruyi Group, led by Qiu Yafu, Chairman, aims to boost Pakistan’s textile exports to $5 billion and create up to 500,000 jobs.

According to the terms of this agreement, Pakistan will develop textile parks in the provinces of Sindh and Punjab, with approximately 100 Chinese textile firms invited to invest in these parks. 

These textile parks' aim to position Pakistan as a leading global hub for textile and garment manufacturing, said Yafu at the meeting. They will be powered by solar energy and fully automated, with a goal of achieving $2 billion in exports during the first phase, followed by $5 billion in the second phase. The project is expected to generate between 300,000 and 500,000 jobs.

Construction on the textile parks will begin by the end of the year, with the project estimated to complete in around three years. Additionally, Ruyi plans to establish wholesale commodity centers in Karachi and Lahore.

The meeting also led to the creation of working groups in Islamabad and Beijing to fast-track the project’s development. Prime Minister Sharif appointed a special committee, led by Ishaq Dar, Finance Minister to oversee the process. The committee includes federal ministers for commerce, investment, industries, production, and privatisation, as well as senior officials from the Special Investment Facilitation Council and the Ministry of Foreign Affairs.

Yafu emphasised on Ruyi’s longstanding relationship with Pakistan, noting that the company's involvement extends beyond investment to friendship. 

Acknowledging the potential of the Indian cotton market, Marcelo Duarte Monteiro, Director- International Relations, Brazilian Cotton Growers Association (ABRAPA), notes, despite cultivating around 12.5 million hectare of cotton, India’s cotton productivity still lags behind Brazil. With targeted efforts, India could significantly boost its cotton yields, freeing up land for other crops and strengthening its agricultural output, he adds.  

An increase in India's cotton productivity would also benefit the global cotton industry as a whole, opines Monteiro. Producer of 5.33 million tons of cotton annually, India is the second-largest cotton producer in the world, just behind China. Brazil, which produces 3.64 million tons, ranks third. Unlike India, Brazil has minimal domestic cotton consumption, allowing it to export 2.72 million tons of cotton annually, making it the world’s largest cotton exporter. Meanwhile, India imports 0.44 million tons to meet its domestic demand, offering Brazil a significant opportunity to increase its market share in India.

Acknowledging the challenge of competing with synthetic fibers on price, Monteiro says, while synthetic fibers often have a cost advantage, cotton offers unmatched quality. Synthetic fibers, particularly plastic waste, are a growing concern in densely populated countries like India and Brazil, where waste management systems are often strained, he points out.

Though logistics and the geographical distance between Brazil and India pose challenges, increased trade could lead to more direct shipping routes, helping to reduce costs, Monteiro opines. Last year, Brazil exported one million tons of cotton to China last year, he emphasises, suggesting, even a portion of that volume exported to India could unlock new opportunities for trade, including other products.

Monteiro recommends Brazil to focus on supplying specific grades of high-quality, contamination-free cotton with staples longer than 29 or 30 millimeters. This specialised approach would fill gaps in India’s textile industry without directly competing with local farmers, fostering a complementary relationship between the two nations, he adds. 

In Brazil, High Volume Instrument (HVI) testing is conducted on every bale of cotton. Two samples are taken from each side of the bale, combined for consistency, and subjected to both visual and HVI tests. The results are stored in a database, allowing for detailed tracking of the performance of different cotton varieties and regions. This system enables Brazil to deliver tailored products to clients and provides valuable data for ongoing research. By analyzing this data, Brazil continuously improves its cotton varieties, enhancing both yield and quality, a commitment to excellence that has been central to Brazil's success in the global market.

India aims to boost its textile exports to $100 billion by 2030, as per the India Brand Equity Foundation (IBEF) under the Ministry of Commerce. During this period, India’s textile and apparel market is projected to grow at a 10 per cent CAGR, reaching $350 billion by 2030.

As the world’s third-largest exporter of textiles and apparel, India ranks among the top five in several categories. The sector contributes 2.3 per cent to India’s GDP, 13 per cent to industrial production, and 12 per cent to total exports. According to the IBEF report, the textile industry’s GDP contribution is expected to nearly double to 5 per cent by 2030.

In Union Budget 2024-25, the government increased funding for the textiles sector by Rs 974 crore, bringing the total allocation to Rs 4,417.09 crore. Funding for research and capacity building was also raised to Rs 686 crore, and the National Technical Textiles Mission saw a 120.59 per cent increase in funding to Rs 375 crore.

However, reduced cotton sowing during the ongoing kharif season could hinder India’s ability to seize additional export orders, especially given the crisis in Bangladesh’s garment industry. By Sep 13, 2024, India’s cotton sowing dropped to 11.24 million hectare, down from 12.36 million hectare last year, according to the Ministry of Agriculture.

While increased sowing in Tamil Nadu, Telangana, and Karnataka might push the total sown area to 11.6 million hectare, lower cotton production is expected to impact textile exports. In FY24, India’s textile exports fell to $34.40 billion from $35.55 billion in FY23. Despite the government’s target to exceed $40 billion in textile exports by FY25, declining cotton production casts doubt on reaching this goal, says Abhash Kumar, Assistant Professor – Economics, Delhi University.

India’s cotton production has been declining since it peaked at 36 million bales in FY20. By FY24, it is projected to fall to 32 million bales. Challenges such as outdated seed technology and labor shortages have reduced productivity, prompting many farmers to switch to alternative crops like soybean. The rising cost of cotton and a 10 per cent duty on cotton fiber imports pose further risks to export competitiveness, warns Mihir Parekh, Foundation for Economic Development.

Consolidating its position as a global leader in sustainability, the garment industry in Bangladesh added three new facilities to its list of green factories.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), these factories included Ananta Huajing in Narayanganj, Sepal Garments in Gazipur, and Unitex Spinningd (Unit-2) in Sitakunda, Chattogram. With these latest certifications, the total number of eco-friendly factories in Bangladesh's readymade garment and textile sector increased to 229.

Of these, 91 factories have earned the prestigious LEED Platinum certification from the US Green Building Council (USGBC), while 124 have received Gold certification. Additionally, 10 factories have achieved Silver, and 4 have been awarded certified status.

BGMEA highlights, around 56 of the top 100 eco-friendly factories across the world are situated in Bangladesh with almost nine of the world’s top 10 green factories located in the country. 

The Government of Uganda has launched the ‘Banatex Project,’ a pioneering initiative to boost sustainable textile production through the use of banana fiber. 

Spearheaded by Busitema University, the project marks a significant step towards leveraging banana fiber, an underutilised yet abundant resource in the country. It aims to scale up and commercialise banana fiber to enhance sustainable textile production.

This initiative will help strengthen Uganda’s textile and clothing sector by boosting local value addition and promoting exports, says Godfrey Kabbyanga, Minister of State, ICT. The project supports the cotton industry by offering banana fiber as a local, eco-friendly alternative, contributing to the sustainability of the textile sector. It not only aligns with Uganda’s environmental objectives but also creates economic opportunities for farmers and local communities, he notes.

The banana industry is a crucial component of Uganda’s economy, contributing significantly to livelihoods, food security, and economic stability. Highlighting the potential of the sector, Kabbyanga states, with the right support, the government aims to further elevate the contribution of the banana industry to Ugandan communities and economy. By focusing on banana fiber, the government taps into a sustainable resource that would help strengthen its economic impact."

Uganda’s textile industry has faced several challenges, including its dependence on synthetic fibers. The Banatex Project offers a timely solution to these issues by promoting eco-friendly textile production, helping the country meet the growing global demand for sustainable textiles, affirms Kabbyanga.

Collaboration between universities, industries, and the government will ensure the project's long-term success, notes Kabbyanga. He urges all stakeholders to actively participate and support Banatex, emphasising, collective effort will help unlock the full potential of this groundbreaking initiative.

The Government of Uganda has launched the ‘Banatex Project,’ a pioneering initiative to boost sustainable textile production through the use of banana fiber. 

Spearheaded by Busitema University, the project marks a significant step towards leveraging banana fiber, an underutilised yet abundant resource in the country. It aims to scale up and commercialise banana fiber to enhance sustainable textile production.

This initiative will help strengthen Uganda’s textile and clothing sector by boosting local value addition and promoting exports, says Godfrey Kabbyanga, Minister of State, ICT. The project supports the cotton industry by offering banana fiber as a local, eco-friendly alternative, contributing to the sustainability of the textile sector. It not only aligns with Uganda’s environmental objectives but also creates economic opportunities for farmers and local communities, he notes.

The banana industry is a crucial component of Uganda’s economy, contributing significantly to livelihoods, food security, and economic stability. Highlighting the potential of the sector, Kabbyanga states, with the right support, the government aims to further elevate the contribution of the banana industry to Ugandan communities and economy. By focusing on banana fiber, the government taps into a sustainable resource that would help strengthen its economic impact."

Uganda’s textile industry has faced several challenges, including its dependence on synthetic fibers. The Banatex Project offers a timely solution to these issues by promoting eco-friendly textile production, helping the country meet the growing global demand for sustainable textiles, affirms Kabbyanga.

Collaboration between universities, industries, and the government will ensure the project's long-term success, notes Kabbyanga. He urges all stakeholders to actively participate and support Banatex, emphasising, collective effort will help unlock the full potential of this groundbreaking initiative.

Valued at $1.32 billion in 2023, the global organic cotton market is projected to grow at a CAGR of 44.4 per cent from 2025-30, according to a report by ResearchandMarkets.com. 

This growth is likely to be driven by increasing consumer demand for sustainable products and rising awareness of the environmental impacts of conventional cotton farming. The shift towards organic cotton is motivated by the desire to reduce the ecological footprint of textile production and address health concerns related to chemicals used in traditional cotton agriculture.

Organic cotton is cultivated without toxic pesticides or genetically modified organisms (GMOs), using eco-friendly farming methods. These practices promote biodiversity, enhance soil quality, and often require less water than conventional cotton. Furthermore, organic cotton farming aligns with fair trade principles, ensuring fair wages and safe working conditions for farmers, which adds to its appeal among consumers, manufacturers, and retailers.

Fashion brands and retailers are increasingly incorporating organic cotton into their products, responding to the growing demand for sustainable and ethically produced clothing. Organic cotton has gained popularity in apparel, home textiles, and personal care products, including bed linens, towels, and hygiene items. Social media and digital marketing have played a key role in raising awareness about organic cotton, increasing its visibility and driving demand. These platforms help build consumer trust by providing transparency about the ethical and sustainable origins of products.

Government regulations and international standards are also supporting the organic cotton market. Stricter rules on chemical use in agriculture, along with subsidies and financial incentives for organic farming, are encouraging farmers to transition from conventional to organic cotton cultivation.

The fashion industry is a major driver of the organic cotton market, with leading brands aiming to improve their sustainability credentials. High-profile collaborations between textile manufacturers and fashion companies have further boosted the visibility of organic cotton.

In terms of value, the Asia Pacific region leads the global organic cotton market, driven by growing consumer awareness of eco-friendly products and strong regulatory support. International brands are increasingly sourcing organic cotton from this region, supported by certifications such as the Global Organic Textile Standard (GOTS).

At the 64th Annual General Meeting of the Textile Machinery Manufacturers' Association (TMMA) on September 19, 2024, Chairman M Sankar delivered a comprehensive analysis of the challenges and opportunities facing the Indian Textile Engineering Industry (TEI). The event, attended by key figures in the textile sector, including Chief Guest Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), underscored the importance of technological advancement and collaboration for the TEI's future.

Global challenges impacting growth

Sankar opened his address by highlighting the impact of global economic challenges on the TEI. Geopolitical tensions and weakened consumer demand have significantly hampered the industry. While inflation has eased globally, export-oriented economies have faced slowdowns, leading to inventory buildups. India and China, with their large domestic markets, have been somewhat insulated from the worst of these challenges. However, the Indian TEI has experienced declining export demand and slowed growth, with capacity utilization falling to 84 per cent. Notably, exports of textile machinery declined by 14 per cent in FY 2023-24 compared to the previous year, exacerbating the sector's difficulties.

Domestic market resilience

Despite these global headwinds, India’s domestic market remains robust. The economy grew by 8.2 per cent in FY 2023-24, with inflation staying within the targeted range, and the fiscal deficit reduced to 5.6 per cent from 6.4 per cent. Sankar attributed this success to improved tax compliance, economic activity, and fiscal discipline. These positive factors have cushioned the TEI from more severe global pressures. Segments such as spinning, processing, and spare parts performed well, although overall industry turnover suffered in the latter half of the fiscal year.

However, Sankar pointed out that the growth within the TEI has been uneven. While some sectors have seen positive developments, the broader industry continues to face significant challenges, particularly in light of the volatile global economic environment.

The push for technological modernization

A major focus of Sankar’s speech was the urgent need for modernization within the TEI. He called for closer collaboration between the textile machinery manufacturers and their user industries, stressing that adopting cutting-edge technologies and investing in research and development (R&D) are essential to staying competitive globally.

Sankar noted that countries like China and European nations have surged ahead in technological innovation, largely due to strong government support. In contrast, India’s TEI has lagged, hampered by limited financial and infrastructural backing. Sankar called for increased government involvement in fostering innovation, particularly through financial investments in R&D and technology. Without this strategic support, India risks falling further behind its international competitors.

Navigating cyclical demand

Another significant challenge highlighted by Sankar is the cyclical nature of demand in the TEI. He noted that the industry often experiences periods of intense activity followed by downturns, creating financial instability and operational inefficiencies. To address this, Sankar suggested that machinery orders be spread more evenly throughout the year, which would help both machinery manufacturers and textile companies by reducing costs and ensuring more consistent production.

Despite these challenges, Sankar expressed optimism about the TEI's future. He highlighted the Indian government’s initiatives, such as the Production Linked Incentive (PLI) Scheme and the PM MITRA Scheme, which aim to bolster the textile and apparel industry. These initiatives, if properly supported, could reduce India’s dependence on imported machinery and help the TEI close the technological gap with global leaders in areas like weaving and processing.

Recognizing excellence in exports and innovation

The AGM also celebrated excellence within the industry through the Export and R&D Awards. Rieter India Pvt Ltd won the Apex Export Award for an overall turnover of Rs 2273 crore, including Rs 747 crore in exports. Other notable winners included Saurer Textile Solutions Pvt Ltd and Lakshmi Machines Works Ltd, which excelled in the machinery sector, and Premier Evolvics Pvt Ltd, which led the textile testing sector. Kirloskar Toyota Textile Machinery was recognized for its achievements in spinning machinery, while Lakshmi Machines Works Ltd also received recognition for its innovation in R&D with its Ring Frame Auto Piecer and Draw Frame LDF3 2S.

A call for collaboration and innovation

In his closing remarks, Sankar emphasized the importance of collaboration between the TEI and the broader textile industry. He reiterated that government support is crucial for fostering innovation and enabling India’s TEI to remain competitive on the global stage. Sankar urged stakeholders to embrace modernization and technological advancements, which will be key to securing India’s position as a global leader in textile machinery manufacturing.

The future of India’s TEI, Sankar concluded, hinges on the industry’s ability to innovate, collaborate, and capitalize on government initiatives. With the right support and a commitment to modernization, the TEI can emerge stronger, more competitive, and better equipped to meet the evolving demands of both domestic and international markets.

Textile machinery manufacturer Staubli will showcase its state-of-the art weaving solutions at ITMA ASIA + CITME, scheduled from Oct 14-18, 2024 at the National Exhibition and Convention Center in Shanghai, China.

Stäubli continuously develops high-performance systems for weaving applications across various sectors, including fashion, home textiles, automotive, protection, medical, carpeting, and advanced technical textiles for aeronautics and future technologies. Just a year after the previous edition, the company is once again showcasing innovative solutions, highlighting automation in the weaving mill and precision in shed formation for even the most intricate Jacquard fabrics. These innovations are designed to enhance the performance, durability, and profitability of weaving mills.

A major highlight of the exhibition will be the world premiere of the Safir PRO S47 drawing-in machine, specially tailored to meet the demands of the Chinese market. It incorporates AWC 2.0 (Automatic Warp Control) technology and Layer and Offset Management to ensure efficient, automatic drawing-in for double-warp-beam applications, particularly for staple fibers and fancy denim production.

Attendees at the Stäubli booth will have the opportunity to explore a broad range of machines, including solutions for weaving preparation, frame and Jacquard weaving, as well as carpet and technical textile production. The Magma warp tying machine offers fast and easy warp tying, ensuring perfectly tied warps, while the Safir PRO S47 employs state-of-the-art AWC 2.0 technology, which leverages image processing, data analytics, advanced algorithms, and high-performance processors to control every thread with precision. This advanced system enables mills to create innovative, unique designs.

Energy efficiency is also a focus, with the LX PRO and N4L PRO Jacquard machines featuring the MX PRO module, powered by NOEMI electronics architecture and the TC8 controller.

These Jacquard machines are designed to be energy-efficient, reliable, and user-friendly. Stäubli will also showcase carpet weaving innovations tailored for the Chinese market. The Alpha 580 Universal carpet weaving machine, designed for quick style changes and complex weave structures, can produce a wide range of carpet qualities with a weaving width of up to 5.3 meters. This machine boasts easy yarn handling, high reliability, and a long service life, making it ideal for carpet weaving mills.

The MyStäubli customer portal will also be highlighted, offering a comprehensive platform to support efficient maintenance, optimise machinery performance, and simplify spare parts management through its redesigned e-shop. My Stäubli is tailored to meet the specific needs of weaving mills, offering training resources, technical support, and personalised interaction options.