FW
Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has warned the government about negative effect on the country's export oriented sector with the proposed gas tariffs increase of up to 30 per cent for industries. The PHMA has sought a separate reduced gas tariff for export orientated industries. It argues the proposed increase will make exports costlier against key competing countries -- Bangladesh and India.
The export oriented industry is already facing multiple challenges in the wake of high cost of manufacturing, exorbitant utility tariffs, high labour wages etc. The association requested the PM to direct the concerned authority to introduce a separate gas tariff slab for textile export oriented industries and avoid any increase in key input rates.
Turkey’s Clothing Industrialists Association (TGSD) is confident that the textile sector will reach $18 billion or more in exports this year and $25 billion in the next five years. The sector made $17 billion exports last year. TGSD is now working to improve Turkey’s deteriorating image in the country’s and the sector’s top export market, the European Union. The country exported almost 72 per cent of its ready-made clothing to the bloc. The association has commenced proactive initiatives to boost its contract with NGOs in the EU countries, mainly in Germany, Spain, the United Kingdom and the Netherlands.
The sector also plans to improve the quality of the labor force to increase its competitiveness in global markets. Its five-year roadmap was based on three main pillars: making close contact with the sector’s markets, raising added-value in production and increasing sustainability. The sector increased its exports by 10 per cent in the first five months of the year compared to the same period of 2017.
There is a definite skinny bias among US retailers. Of the jeans offered for sale in one of the country’s largest malls, only 13 per cent would fit women of typical size or larger. Even online offerings don't get better. Only 19 per cent of the sizes available through retailers' websites would fit a woman with a waist larger than the national median.
If one were to line up the waist sizes of all American women, from smallest to largest, who are ages 20 and older, the number in the middle would be 37.3 inches. If one were to add all of those sizes up and take the average instead, the number goes up a bit to 38 inches. Most well-recognized retailers don't have either of those sizes in stock at their stores.
Every single store that sells women's jeans offers options for women whose waists are smaller than the national average, but only 50 per cent of stores have any sizes for women with waists larger than 38 inches.
Even of the stores that do offer at least one option larger than 38 inches, many of them only offer those choices online rather than in the physical building where consumers could try them on before making a purchase.
As per Vietnam Textile and Apparel Association (VTAA) over 2,000 companies from 16 countries and territories have invested around $15.75 trillion in Vietnam’s garment and textile sector so far. Out of these, South Korea emerged the biggest investor with investments exceeding $4.4 billion, followed by Taiwan whose investment is worth $2.5 billion. Hong Kong invested $2.1 billion while Japan’s investment is worth $789 million.
Low labour costs and free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), are attracting foreign investors to the Vietnamese garment and textile sector. Earlier this year, Japan’s ITOCHU Corporation purchased additional 10 per cent shares of Vietnam National Textile and Garment Group (Vinatex) by investing $47 million, raising its stake to 15 per cent and making it the second-largest stakeholder after the Vietnamese industry and trade ministry. Other big foreign direct investment projects include the $80-million Nam Dinh Ramatex Textile and Garment Factory by Singapore and the $80-million Ha Nam YKK Factory specialising in zippers and other materials for the garment industry.
A group of businessmen from the United States, Germany, Turkey and Mozambique will invest $150 million to install the textile industry in the northern Malanje province of Angola. This project provides the promotion of cotton production in Quela district and study from other regions for cultivation. With the implementation of the two components of the project (industrial and agricultural), around 40 to 50 thousand direct jobs are expected to be added.
The industry minister is establishing contacts with the ministry of construction and public works to improve access roads to areas where cotton is intended to be grown in Quela district. The textile factory will be installed in the Agro-industrial Development Hub of Malanje, whose conditions for installation of electric power and drinking water will be created soon.
As per Vietnam Textile and Apparel Association (VTAA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) expected to come into force in early 2019, will offer numerous opportunities for the garment-textile sector. Firstly, the industry will be able to access many markets with huge potential, including those with which Vietnam has yet to sign free trade agreements (FTA). Import tariff on most products will reduce to zero over the course of seven years, which will help businesses achieve high economic efficiency and increase competitiveness. Garment-textile firms will be also able to make use of raw material supply and learn about production technology and management skills from CPTPP member countries.
The pact will provide new opportunities for businesses in both export and import. For example, currently Vietnamese apparel makers have to rely on materials imported from China, Japan and the Republic of Korea. With the CPTPP, enterprises could import material from other CPTPP countries such as wool from Australia. In order to capitalise on opportunities presented by the CPTPP, enterprises will need strong support from State management agencies. On their part, the enterprises must spare no effort to penetrate into the markets, first of all by studying thoroughly their target markets. They should also invest in modern machines and sharpening skills for workers.
Britain’s looming departure from the European Union has led nearly half of big companies from the rest of the bloc to cut investment in the country. German companies, especially, think Brexit is bad for business. Aircraft maker Airbus plans to reconsider its long-term position. This spells uncertainty for thousands of British jobs.
A disorderly Brexit could have disastrous consequences for Britain. Britons voted on June 23, 2016, to leave the EU. Most companies in France, Germany, Sweden, Ireland, Spain and the Netherlands want a better trading relationship with Britain after it leaves the EU in early 2019. They feel trade is more important than teaching Britain a lesson for leaving the EU. Two thirds want a free trade deal while 45 per cent are in favor of a customs union.
Business leaders feel they were not properly consulted, or their views taken into account, by the EU negotiating team as it tries to hammer out a post-Brexit trade deal. However, Britain is confident of getting a good deal ensuring trade is as free and frictionless as possible. Brexit could be a sort of blessing in disguise for the British textile industry. The exit of UK from the European Union has resulted in a depreciation of the value of the sterling. This in turn has rendered UK’s textile and garment exports much more competitive for the export market.
Low-cost manufacturing made China the second largest economy in the world. But rising labor costs, rapid socio-economic progress, and improvement in living standards have led the country to shift from apparel manufacturing to capital-intensive industries. Made in China 2025 is a plan to transform the country into a high-tech powerhouse that dominates industries like robotics, advanced information technology, aviation, and new energy vehicles.
Moreover, the One Belt One Road initiative -- which involves infrastructure investments worth $2 trillion -- will give Chinese garment manufacturers fresh relevance. For example, new rail links will shorten transport times to Europe, and the initiative will increase China’s access to Africa’s growing consumer markets.
As Chinese apparel manufacturers ramp up their outbound investment in countries such as Vietnam and Ethiopia, they may enhance their roles in global apparel sourcing, producing on a larger scale beyond their home market. Finally, the Chinese garment sector is leading the push for greater efficiency with the adoption of digitization and automation.
Digitization can unlock progress that go beyond replacing manual processes. For example, advanced analytics -- whether applied in capacity planning, country and supplier selection, or intelligence -- will help achieve the right balance between speed, agility, and cost.
Bombay Dyeing will increase its shareholding in Indonesia textile company PT Five Star (PTFS) from 33.89 per cent to 86 per cent. This means Bombay Dyeing will exit the joint venture partnership with PT Five Star and the latter will become a subsidiary of Bombay Dyeing.
PTFS was incorporated in Indonesia in 1979 with an objective of manufacturing and selling of yarn, cloth and other textile products. It registered a turnover of $1.84 million and a net loss of $1.54 million in December 2017. The company has been incurring losses for many years hence it has been decided to wind up operations. With closures like these Bombay Dyeing is looking to cut down losses across all verticals as it prepares itself to enter the lucrative apparel segment with heavy investment.
Bombay Dyeing, the textile arm of the Wadia group, had earlier announced that it will be re-entering the readymade apparel market with menswear garments and planning to open close to 100 franchise stores in Tier II and III cities before the end of this year.
Bombay Dyeing currently has 27 company-owned stores, 3000 multi-brand stores and over 200 franchise stores across India.
The 4th sustainability compact review, in Brussels assessed the progress of occupational safety, building safety, workers rights and trade environment in RMG industry of Bangladesh. The meeting adopted the recommendations for ensuring due prices of Bangladeshi apparels. It also took initiatives to remove the hurdles in the way of supply chain of Bangladeshi RMG products to the world market.
Out of a total of 17 guidelines of the sustainability compact, the most important included establishing respect for labour rights, freedom of association and the right to collective bargaining, structural integrity of the buildings and occupational safety and health, and responsible business conduct by all stakeholders engaged in the RMG and knitwear industry in Bangladesh.
Representatives from EU, US, Canada, ILO Donor Agencies, manufacturers, buyers, trade union leaders and civil society representatives participated in the meeting. The Bangladeshi delegation members included State Minister for Labour and Employment, Md. Mojibul haque Chunnu, Commerce Secretary and other officials.
