FW
"With the normalisation of relations between Vietnam and the US in 1995, what followed was the signing of the Vietnam-US Bilateral Trade Agreement (BTA) on in 2000. The treaty opened up a new chapter in investment and trade between the two nations. Then onwards, the textile and apparel industry made remarkable strides, impressing US importers with its reasonably-priced, high-quality products."
With the normalisation of relations between Vietnam and the US in 1995, what followed was the signing of the Vietnam-US Bilateral Trade Agreement (BTA) on in 2000. The treaty opened up a new chapter in investment and trade between the two nations. Then onwards, the textile and apparel industry made remarkable strides, impressing US importers with its reasonably-priced, high-quality products.
And as Le Quoc An, Former Chairman of Vietnam National Textile and Garment Group (Vinatex) opines the local textile and garment sector moved from being merely a processing market for the relatively tolerant Soviet Union and Eastern European markets, to conquering the US market – a market renowned for its strict regulations.
Export milestones
The prominent companies that had the wherewithal to enter the US market at the time were: Garco 10 (May 10), Viet Tien Garment, and Nha Be Corporation. The turning point for Vietnam’s textiles and garments reaching the US market in a meaningful, professional manner did not come until the end of 2001 when some 20 local companies came to a trade fair and the launch of a Vinatex office in New York. Thanks to this event, Vinatex finally got the opportunity to meet leaders in the field including the American Apparel and Footwear Association (AAFA), the US International Trade Admission (US ITA), and from the JC Penney Company. One year later, these leaders began to co-operate with Vietnamese textile companies and textile exports to the US began to pick up.
In 2001, prior to the BTA taking effect, Vietnam’s textile and garment exports to the US was $47 million. In 2002, it skyrocketed to $957 million, a 20-fold increase. In 2004 Vietnam’s textile and garment exports to the US reached $2.4 billion; and by the end of 2015, the figure hit a whopping $11.5 billion. Vietnam’s textile and garment market has become the US’ second-biggest import market, following China.
Vietnamese account for 9 per cent of the US import market share. The value of textile and apparel exports to the US is expected to reach $13 billion in 2016, and touch $20 billion by 2020, says An. However, AmCham predicts the magic $20 billion number will not be reached until 2025.
Growth of local businesses
The BTA has created a foundation for local apparel makers to grow quickly through knowledge gained from doing business with global partners. What was once a small sector that needed a visa for every single export order is now the number one export industry in Vietnam, says An. Many local companies were encouraged to invest in machinery, equipment, and technology, as well as enhance their human resource base to manage and utilise new production systems and technology, as Vietnamese textile and garment products gradually charmed the US market. Crucially, this changed the perspective and mindset of local businesses, moving them from a collection of small, scattered businesses, to a network of well-managed enterprises with a common goal and the management skill necessary to efficiently handle large orders from the US market.
Noted Tran Van Pho, Chairman of Hoa Tho, after some 20 years of exporting textile and garment products to the US, the company has become a trustworthy partner of many world-famous brands including Snickers, Burton, Novadry, Haggar, Perry Ellis Portfolio, and Calvin Klein.
Of course, it is not by luck that the Vietnamese textile and garment sector has gained a strong foothold on the global textile map, or in the US market, for that matter. According to Pho, in the first few years of targeting the US market, Vietnamese apparel firms were overwhelmed by trade barriers and complicated regulations on quality, specification, technology, and the environment. As such, the industry’s determination and hard work to adapt to higher market standards was the secret to its success.
According to An, the rapid boost in exports to the US has helped improve the added value of the textile and garment chain in Vietnam, in terms of massive investment injected into upgrading the entire industry. The scale of production has multiplied as a result, and companies are now familiar with international business standards and export markets.
Meanwhile, local textile businesses have also taken the initiative to cut out intermediary phases, and have increased their direct exports to international markets. Previously, Vietnam textile and garment companies needed to pass at least three intermediary steps to reach the US market. According to Vinatex director general Le Tien Truong, the TPP, will slash 60 per cent tariffs to zero, and promote textile and garment exports at an estimated growth rate of over 20 per cent.
A number of large investment projects have been carried out by Vinatex since the end of 2013, with 60 per cent of total investments used in material projects. Vinatex expects to spend some $459 million during the 2015-16 to invest in what are considered to be weak production lines.
Can the US textile and apparel industry capitalise on the dynamic growth of digital fabric printing to WTiN North America Digital Textile Conference, to reinvigorate ‘Made in America’ manufacturing? That’s the question that will be examined at the conference which will take place in New York on July 13.
Digital textile printing grew globally by 28 per cent in 2015 to reach output of 1.2 billion square meters, supported by rapid investment in high-speed industrial machinery and inks. Print design has evolved to take advantage of its new opportunities, while leading brands and retailers have embraced shorter product development cycles and new, more responsive supply chain models – often involving production close to the final customer. The technology has also led to the blossoming of a new industry of personalized web-to-consumer printing on demand.
The US is already participating in this boom, with a global market share of more than 6 per cent and a growth rate last year of over 40 per cent. In this background, the WTiN North America Digital Textile Conference will take place at the Javits Convention Center, alongside the leading Texworld USA fabric show, on Wednesday, July 13. Sponsors are Kiian Digital, Lubrizol, SPGPrints, Sensient Technology, Expand Systems and Diamond Dispersions.
Joe Farren is the new CEO of British Wool Marketing Board (BWMB). He succeeds Ian Hartley who led the organisation for 22 years. Farren is a lawyer and advises on company mergers and acquisitions. He has worked with a multinational distributor of building and home improvement products and with Lloyds Bank. He is part of a farming family.
BWMB serves the interests of wool producers and helps in maximising the value of their wool. It manages the auction process so as to maximise prices for producers and promotes wool strongly on the global stage as the pre-eminent fiber, being aesthetically attractive, known for being high performance and environment friendly.
Established in 1950, the farmer-run organisation was created to operate a central marketing system for UK fleece wool, with the aim of achieving the best possible net return for producers. The not-for-profit body is required to register all producers with four or more sheep.
The BWMB remains the only body in the world that collects, grades, sells and promotes fleece wool, its preference for the auction method being another of its stand-out qualities.
Originally, the board was a statutory body, but it’s now a producer cooperative. It provides courses and training on shearing.
Denimsandjeans.com is ready to host its maiden denim show from June 16 to 17 in Vietnam. The objective of the show is to bring some of the most reputed international mills, local vendors, top brands and retailers as well as supply chain partners together on a common platform. A series of seminars, panel discussions and presentations will also take place at the show.
Vietnam is a growing apparel exporting country. It presently ranks the fourth largest exporter of apparel after China, Bangladesh and Hong Kong and it has around 4,000 garment factories employing about 2.5 million workers. Increasing approximately at the rate of 19 per cent compared to 2013, Vietnam’s textile and garment exports crossed $24 billion in 2014.
Vietnam’s apparel industry has emerged as the next major sourcing destination for buyers, especially from the US market. US apparel imports from Vietnam grew by 38 per cent in February 2016. About 37 exhibitors from different regions of the globe will participate in the show. They include four major denim mills from Bangladesh. These are planning to explore this market through this show and make the most out of it. Denimsandjeans.com is the pioneer of denim shows in Bangladesh.
The Fashion Awards 2017 in partnership with Swarovski will award Stella McCartney OBE with a Special Recognition Award for Innovation, celebrating her outstanding contribution to the fashion industry. McCartney will be honoured on December 4 at the Royal Albert Hall for her commitment to material innovation and for using her influence to raise awareness on environmental issues. Her constant investment as a responsible, authentic and modern business is what makes her one of the industry’s most respected designers.
Stella McCartney’s commitment to environmental issues started at an early age. As a vegetarian passionate about animal rights, McCartney has never used any leather, fur, skins or feathers in her designs. After completing a degree in fashion design at central St Martins, McCartney’s international career officially commenced in 1997, when she was appointed Creative Director at French luxury house Chloé. In 2001, Stella McCartney established her eponymous fashion house in 50/50 in partnership with global luxury group, Kering. Since its launch, Stella McCartney’s brand has had a deeply rooted commitment to ethical values, believing the company is responsible for the resources it uses and the impact it has on the environment, constantly exploring innovative ways to become more responsible from design to store practices and product manufacturing. McCartney’s main goal is to combine her brand’s commitment to sustainability without compromising on luxurious beautiful designs. This is what makes her a game changer in the industry, a true innovator.
McCartney exults, “I’m incredibly proud to get this award. What I am most proud of is that it is a new award that is introduced into the Fashion Awards, a special recognition on innovation. I am hoping that as being the first recipient, I can inspire other design houses to follow suit and to make this the most prestigious award, not just a one off.”
Polyester producing companies have cut production by 40 per cent in the last three months due to the acute shortage of key raw material PTA (purified terephthalic acid) supplied by oil refining companies. Oil refineries have cut production in some of their units for various reasons. Reliance Industries, the largest producer of PTA, cut production between March and May for two weeks each and is allocating only 50 per cent of its supply.
Polyester manufacturers require 5.3 million tons of PTA per annum. The anti-dumping duty of 15 per cent levied in December has made import of PTA unviable for the polyester industry. Unlike other PTA users, polyester companies cannot afford imports after the anti-dumping duty as they are operating at a wafer-thin EBITDA margin of six to seven per cent.
A steady supply of PTA is key to operating a polyester plant as it is a continuous process and cannot be shut and restarted at will. So the industry wants the anti-dumping duty revoked. Of the annual installed polyester production capacity of 8.4 million tons, companies have produced only 5.8 million tons due to the raw material shortage.
While import of PTA attracts a duty of 15 to 20 per cent, imports of paraxyle, which is the raw material for producing PTA, are allowed duty free.
Kitex Garments aims to achieve 20 per cent growth in financial year 2016-’17 by expanding its customer base and increasing business share with existing customers. To achieve this goal the company is in the process of increasing its manufacturing capacity. Kitex is planning to invest about Rs 10 crores this year to upgrade its manufacturing and information technology wing.
Established in 1992, Kitex Garments is into 100 per cent exports of cotton garments, especially infant wear to the US and European markets. The vertically integrated manufacturing plant makes infant wear as well as fabrics.
The company intends at driving its next level of organic growth by expanding markets and online and offline marketing channels, backed by capacity expansion and enhanced technological capabilities. Kitex further plans to upgrade its automation of sewing production in 2016-17 in order to increase productivity and output capacity without increasing the manpower.
With regular capex for improvement of technology and infrastructure it aims to upgrade its current facilities so as to expand its capacity from 0.55 million units to 1.1 million units per day. It is a vertical set-up with knitting and processing of fabrics, until finished garments are done in-house.
The facility is 240 meters long and 70 meters wide and covers an area of six lakh sq. ft. The process line is equipped with a digital dispenser system for error-free, automatic and computer-controlled preparation of color guidelines, high quality knitting machines, and modern dyeing, printing and finishing systems that use cutting-edge technology.
From product certification in accordance with the OEKO-TEX Standard 100, which was first introduced in 1992, the International OEKO-TEX Association has now, through continuous development and expansion of portfolio, established itself as a full-service provider for independent certifications and services for greater sustainability along the textile value-creation chain.
The association is now taking into account this strategic change from niche provider for human-ecological product safety to a global system solution for brands, retailers and manufacturers with new brand architecture. The focus is on the OEKO-TEX logo and the claim “Confidence in Textiles”, which over the past almost 25 years has been known across the industry as synonym for effective consumer protection, responsible handling of chemicals and use of environmentally friendly production technologies and compliance with fair working conditions.
OEKO-TEX has already presented the new brand design during the market launch of MySTeP database, the MADE IN GREEN product label and the ECO PASSPORT certification for textile chemicals. Beginning Autumn 2016, the modernised appearance will also be used with most well-known OEKO-TEX brand, the STANDARD 100, and the STeP certification. At that point, the new STANDARD 100 product label and the refreshed STeP logo for B2B communication will also be available to more than 10,000 partner companies around the world.
Grasim has bagged Frost & Sullivan's Sustainability 4.0 awards at the 2016 edition of the India Sustainability Summit held in Mumbai. Grasim's unit at Harihar in Karnataka, which houses a facility for manufacturing both viscose staple fiber and rayon grade pulp, was awarded the Frost & Sullivan's Sustainability 4.0 Award in Challengers Category – Large Business.
The VSF plant at Kharach in Gujarat, which employs the most modern technology giving it a competitive edge in the export market, received the Certificate of Merit - Challengers Category – Large this year.
The awards were given away after the summit which was held with a mission to assist the adoption of sustainable practices across Indian companies. At the event eminent persons from various businesses spoke about the different initiatives taken by their companies with respect to sustainability.
The awards were received by Rajeev Gopal, Global Chief Marketing Officer of Grasim’s Pulp & Fiber business, and Ajay Sardana, VP and Head-Sustainability of Grasim’s pulp and fiber business.
Sardana gave a presentation on product life cycle management and spoke about Birla Cellulose’s initiatives regarding its commitment towards a sustainable company. He explained the efforts at Birla Cellulose right from seeding to pulping to processing and manufacturing.
Federal Trade Fair for Apparel & Textile, Moscow is scheduled from September 20- 23, 2016. It is an important textile fair in Russia, which attracts a large number of buyers of textile products from Russia including entire CIS region and other major textile importing countries across the world. The fair is regularly visited by textile/clothing manufacturers, large scale retailers, wholesalers, chain stores, departmental stores, buying houses, leading agents including Fashion Designers.
The exhibition will be visited by leading Russian and other CIS countries textile buyers/importers/agents. Participation in this Exhibition will provide member-companies an excellent opportunity to establish trade-contacts with prospective Russian customers, and enhance their Exports to this market and entire CIS region.
Organised at the All-Russian Exhibition Center (V.V.C) Moscow, the fair will cover all types of yarn, fabrics, made-ups, home textiles, and garments.
