FW
From 2011 to 2015 Vietnam’s exports of textiles and garments have maintained steady growth and stability. Total exports in the first nine months of 2015 were up 10 per cent compared to the same period of 2014. In 2015, the target for export turnover increased 11.3 per cent compared to 2014, with localisation rate at 51 per cent.
The textile sector is expected to become the country’s second largest exporter, with Vietnam remaining among the top five leading textile exporting countries. In the next stage, when the Trans Pacific Partnership takes effect, tariffs on exported textiles to the US will be eliminated, which will also happen when the EU-Vietnam free trade agreement comes into being.
In the long term, these agreements are expected to promote development of textile industry, create jobs, attract investment in raw materials, dyeing and finishing, and boost competitiveness in the global textile value chain.
There is a strong need for enterprises in the Vietnamese textile industry to incorporate advanced technology from overseas. Total number of employees in the Vietnamese textile industry stands at 2.5 million and will rise to 2.8 million in 2016 and 3.3 million by 2020.
Indonesia is contemplating income tax cuts to support the labor-intensive footwear and textile industry. The proposal is to reduce employees’ income tax by as much as 50 per cent. The incentive is expected to last for five years and would come with terms and conditions. The tax cut would only be applicable for companies that export 50 per cent of their production and employ at least 5,000 workers and is expected to benefit the industry’s cash flow.
Indonesia is pushing efforts to revive growth in the labor intensive industry after the country’s economy weakened to the lowest level since 2009 in the past three quarters. Falling demand combined with soaring raw material prices, rising electricity tariffs and illegal imports have prompted manufacturers of shoes and textile goods to lay off workers. At least 40,000 workers at footwear factories and another 39,000 textile workers were dismissed in the first half of this year.
Requirements currently imposed on manufacturers to procure raw materials and to access financing will be eased. Buffer stocks of cotton and leather will be established to ensure steady supplies of raw materials. In addition, trade promotion efforts in the domestic market will be ramped up. Free trade agreements with the prime export markets of Indonesia's footwear and garment industries will be sought. This will make prices of Indonesian products more competitive in Europe.
India is looking at increasing textile and clothing exports. New markets like Africa are being explored to widen the geographical spread of export market and reduce dependence on the developed world — mainly the US and the EU. India is also likely to renew focus on some segments that are already doing relatively well so that the country’s dominance is further entrenched in those areas.
Diversification to Africa will help India in the long run. The need to tap new markets has arisen more than ever, as China’s economy is set for a prolonged slowdown and the developed world is still struggling with a fragile recovery. To promote textile exports in new markets, India has raised support to outbound shipments of more textile products under the Merchandise Exports from India Scheme (MEIS). Most textile and garment items, which were earlier not eligible for many benefits, are now granted a three per cent duty credit scrip under the MEIS to tap markets such as those in Africa.
Overall textile and garment exports rose 0.6 per cent in the first half of the current fiscal from a year before while the country’s overall exports plunged by 17.6 per cent during the period.
Organisers of the World Textile Awards, sponsored by The Textile Institute, Manchester, have extended the final deadline for entries to January 31, 2016 driven by demand. The winner will be awarded to recognise and honour different aspects of the firms in categories: Fibre Producer, Spinner, Knitter, Weaver, Dyer and Finisher, Garment Maker, Technical Textile Producer and Home Textile Producer.
The event would also offer the title ‘International Textile Firm of the Year’ for mark of quality commitment and professionalism. Textured Jersey (Sri Lanka) achieved this award in 2014. Headquartered in London, the quest of the World Textile Awards is primarily to formulate a united platform over economies to nurture extraordinary work and successes at different levels of the textile industry. With immense growth in the sector, firms have an opportunity to make a mark, since entries being opened to all textile manufacturing regardless of its size.
Each year, organisers assemble a team of experts from across the globe as the panel of judges for the World Textile Awards. They are drawn from leading textile organisations, institutions and companies. The jury’s task is to review each form. The firms are liable to submit a written description on why they deserve a category of award. The prominent features considered are: market position, technical performance, environmental and sustainability practice, quality control and employee programmes.
The cellulose fiber market has been witnessing strong growth over the past few years. Fibers extracted from natural plants are called as cellulose fabrics whereas fibers extracted from plant pulps are called manufactured cellulose fabrics. Cellulose fibers are extensively used in fabrics, textiles and spun yarn applications. Various chemical and mechanical processes have to be carried out to obtain wood pulp from plants. This extracted wooden pulp is used to obtain different man-made fibers. Rayon and viscose fibers are manufactured cellulose fabrics. Rayon fibers are extensively used in manufacturing curtains and carpets owing to their good absorbing properties. Acetate fibers are used in cigarette filters and apparels on account of their fast drying capability.
The textile industry has emerged as a leading application segment for cellulose fibers. Cellulose fibers are extensively used in the textile industry owing to their superior properties such as environment friendly, skin friendly and bio-degradable properties.
Spun yarn and fabrics are the major markets for cellulose fibers accounting for nearly a 25 per cent global market share. Asia Pacific has emerged as a leading regional market for cellulose fibers over the past few years closely followed by Europe. Asia Pacific holds the major portion of the market share in terms of production and consumption. The strong growth of the textile industry in India and China is the key factor driving the cellulose fiber market in this region.
To celebrate its 30th anniversary of UK subsidiary, Shima Seiki Europe, the well known flat knitting machine manufacturer plans to hold a private exhibition at its offices in Derbyshire this month. The event will recall the 30 years of sales and service in the UK. The company plans to display technology in the form of an ‘After-Show’ exhibition much like the previous month’s outstanding show at the ITMA Milan, Italy. The show consolidates the company’s exclusive WHOLEGARMENT knitting technology, which coincidentally celebrates its 20th anniversary this year.
The exhibition will highlight the company’s current line of cutting-edge computerised flat knitting technology. Shima Seiki’s original Slide Needle on four needle beds is featured through the flagshipMACH2X series. The limelight at Shima’s ITMA booth, the new MACH2XS machine will also be showcased to mark Shima Seiki’s original spring-type sinker system. SWG-N2 series compact Wholegarment knitting machine will also be demonstrated. It is designed to offer increased colour capacity and the capability for producing industrial textiles.
Among others the UK exhibition will also showcase SIP-series flatbed-type on-demand inkjet printing machine and P-CAM cutting machine which were also displayed at ITMA. The SDS-ONE APEX3 design system, which is the company’s core Total Knitting System concept will be exhibited.
US retail sales at the beginning of the holiday season were slow. Sales were impacted by continued unseasonably warm weather that delayed purchases of fall apparel as well as a shift in consumer buying patterns. Online shopping too has contributed to a decline in sales at brick-and-mortar stores as consumers get more and more comfortable shopping over the internet.
Holiday sales constitute nearly a fifth of the retail industry’s annual sales. Sales increase this holiday season is expected to be 3.7 per cent compared to the 4.1 per cent growth reported last year. The year-over-year decline is attributed to slow jobs growth, pressure from deflation on retail sales and increased consumer spending on services rather than goods.
There has been a 4.8 per cent decrease in comparable store sales for the month of November. Total monthly sales declined 1.2 per cent from the prior-year month. The entire shortfall in November comparable sales occurred during the first two and one-half weeks of the month. Sales improved to flat last year for the remainder of the month and positive in early December. Consumer confidence in the US unexpectedly saw a substantial deterioration in November mainly due to a less favorable view of the job market.
The Indian government has decided to focus its energies on boosting certain segments of the textile and apparel industry that are already reporting positive performance. It will also assist exporters with export-friendly policies to explore new markets such as Africa so that its dependence in the US and the EU is reduced.
While the country’s total exports contracted for an eleventh straight month through October, overall textile and clothing exports — which also include those of handicrafts and carpets reported positive growth. According to the latest data, overall textile and garment exports rose 0.6 per cent to $18 billion in the first half of the current fiscal from a year before, while the country’s overall exports plunged by 17.6 per cent during the period. Consequently, the share of such textile and clothing exports in the country’s overall exports have risen to 13.5 per cent in the April-September period this fiscal from 11.1 per cent a year before.
Segments like handicrafts and handlooms will receive a renewed boost in order to enhance their export potential. China is the biggest market for textiles, accounting for over 70 per cent of India’s cotton and 40 per cent of yarn exports and the US and the EU are the largest markets for Indian apparel, with a share of around 65 per cent of the total garment exports. To promote textile exports to new markets such as Africa, the government has raised support to outbound shipments of more textile products under the Merchandise Exports from India Scheme (MEIS). Most of the textile and garment items, which were earlier not availing much of a benefit, are now granted 3 per cent duty credit scrip under the MEIS to tap markets.
Recently, the government also introduced 110 new tariff lines, including textile, telecom and electronic items, in the MEIS and increased the duty benefit rates or the country coverage, or both, for 2,228 existing tariff lines. The commerce ministry’s move to partially tweak the MEIS came after the finance ministry had agreed to raise the allocation for the scheme to Rs21,000 crores for the current fiscal from Rs18,000 crores announced earlier.
Texmin.nic.in
A three-year campaign for the right of Ismaco garment workers successfully ended on November 27, 2015, when IndustriALL Global Union’s Turkish affiliate Deriteks signed a collective bargaining agreement with Ismaco management.
At the end of 2012, garment union Deretiks started organising workers at the Ismaco plant, a supplier to top Italian brand Ermenegildo Zegna. Despite approaching the management with various suggestions, the management still decided to fire nine union members for organising activities. To protest sacking of workers, they started agitation at Tuzla Free Zone in Istanbul for 245 days. The union also organised protests in front of Zegna’s stores in Istanbul.
On a visit to Turkey in 2013, Kemal Özkan, IndustriALL assistant general secretary, called on Ermenegildo Zegna to respect workers’ rights, and take the sacked employees back on duty and recognise the union at workplace. Supporting its affiliate, IndustriALL conducted several actions together with Deriteks, Ermenegildo Zegna and Ismaco to try and find a solution. In late 2014, IndustriALL and its Italian and Turkish garment affiliates agreed on a document of common understanding, recognising freedom of association for all employees at the plant. In early 2015, IndustriALL and Ermenegildo Zegna organized a town hall meeting with all the workers at the plant to announce the joint agreement.
On 1 June 2015, Deriteks received a union authorization from the Ministry of Labour. IndustriALL has continued to assist Deriteks in the negotiations to reach the agreement.
www.industriall-union.org
A new trade union law being readied by Cambodia’s government for submission to Parliament, according to International Trade Union Confederation (ITUC) imposes a host of restrictions on trade unions which would severely curtail workers’ rights to union representation, in violation of International Labour Organisation Convention 87 on Freedom of Association.
The proposed law places unacceptable administrative and legal burdens on trade unions, excludes workers in air and maritime transport and the informal economy from its scope, hinders the process of forming a union, allows whole unions to be dissolved if individual officials act illegally, and imposes onerous restrictions on the right to strike.
Other provisions include financial penalties for any union found to have breached the law which are so high that they could bankrupt the union, intrusive government controls on union finances and unacceptable restrictions on who can be elected as a union office-bearer. While the law purports to stop employer interference in unions, there are no such restrictions on government and political parties interfering in unions, which is a substantial problem in Cambodia.
The government has also ignored calls to set up a labour court, meaning that labour issues that do get to trial are handled by the regular court system which is notoriously corrupt and subject to external influence, ITUC said.
Sharan Burrow, ITUC General Secretary, said, “This draft law is a step backwards. It would put Cambodian workers, many of whom work extremely long hours for poverty wages in poor conditions, at even greater disadvantage than today. Depriving workers of the right to freedom of association, as this law would do, leaves them at the mercy of their employers with little or no recourse. It is yet another example of a government failing to support its national workforce in the exploitative system of global supply chains which dominates the world economy today.”
The ITUC represents 180 million workers in 162 countries and territories and has 333 national affiliates.
http://www.ituc-csi.org
