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Textile manufacturing market in Serbia is expected to grow at a CAGR of 3 per cent during 2016-2020, according to a latest Technavio forecast report. The study covers the present scenario and growth prospects of the textile manufacturing market in Serbia for 2016-2020 period. The report also outlines the challenges faced by the manufacturers and the market at large, as well as the key trends emerging in the market.
Textile manufacturing is an integral part of the Serbian economy. It is export oriented and labour intensive, providing the country with huge employment opportunities and, therefore, is an industry that is highly favored by the government. The GDP is expected to accelerate in 2016 following a number of government policies such as relaxation in monetary policies and structural reforms, which are expected to improve the business environment and lead to the inflow of foreign investments. Manufacturers in the market are expected to capitalize the market and boost production. They are also expected to focus on exports, particularly to the EU, the country's most important trading partner.
Technavio consumer and retail analysts highlight three factors - Strategic location, Favorable trade agreements with EU and Low subcontracting costs that are contributing to the growth of the textile manufacturing market in Serbia.
Vietnam’s Ministry of Industry and Trade (MoIT) has proposed the development of large textile and garment industrial zones (IZs) to attract investment in dyeing, and fabric and yarn production. The 500ha to 1,000ha zones would attract local and foreign investment for high-end products.
The ministry has also proposed that the government provide full support for the building of textile and garment industrial zones located in provinces and cities experiencing socio-economic difficulties in order to create conditions for the success of small and medium startup enterprises, according to the ministry. The proposal also targets the development of transport infrastructure connecting the large industrial zones to ports and logistics centers and reduces transportation costs.
Meanwhile, the Vietnam Textile and Apparel Association (Vitas), has sent a document detailing the difficulties of textile and garment enterprises and proposed solutions, supports the IZ plan to the Government. The association also suggested the government provide credit for enterprises to build waste water treatment centers at those industrial zones.
Textile and garment exports grew in the first half of this year, but local firms face difficulties in obtaining production and export contracts for the second half of 2016, according to the MoIT. The ministry reported a six-per cent export increase in the first half of this year to US$12.8 billion.
Thailand and Pakistan are likely to sign a free trade agreement by the end of this year. Both countries with dynamic consumer markets have unlimited scope for business. Although Pakistan faces an unfavorable balance of trade with Thailand the consistent rise in bilateral trade is a positive sign. To increase the volume of trade between the two countries, trade fairs and single country exhibitions will be arranged on a reciprocal basis. The communication gap between the respective private sectors will be bridged. Pakistan already exports frozen fish, woven cotton fabrics, crustaceans, cotton yarns, leather, medicament mixtures and electro-medical apparatus to Thailand.
Thailand and Pakistan established diplomatic ties back in 1951 and both countries have been enjoying steady economic and trade relations. Among the top exporting countries for Pakistan, Thailand comes at 34th place and with regard to top importing countries, Thailand is ranked at 12th place. Trade is expected to flourish after the FTA is signed between the two countries as the cost of doing business will fall and the non-tariff barriers will be removed. Thailand is already investing in Pakistan while more Thai companies are keen on following suit. From 2013 to 2015, bilateral trade increased from 833 million dollars to 973 million dollars.
The Kenya Association of Manufacturers (KAM) is looking at having a Preferential Trade Agreement with India to allow the entry of locally made goods and especially privileged ones to the Indian market. This comes in the wake of Prime Minister Narendra Modi’s three-day state visit to Kenya that began on July 10. Modi’s visit renewed trade ties with the world’s seventh-largest economy. Both government and the private sector want the two countries to agree on the PTA which Kenya feels would help bridge the huge trade imbalance that is in favour of India, Kenya’s second-largest source of imports.
Last year, the value of imports from India stood at Sh252.5 billion that was a drop of 2.3 per cent from Sh264.5 billion a year earlier, a data from the Economic Survey 2016 shows. This was against Sh8.9 billion in exports although this was a marginal rise from Sh8.7 billion in 2014. KAM chief executive Phyllis Wakiaga said that said such a deal would increase Kenyan exports to India Kenya and India do not have a Preferential Trade Agreement. Hence, for Kenya to have duty access to India and vice versa, a Preferential Trade Agreement would be required. The manufacturers also aim to increase leather and textile exports to India if the proposed PTA is agreed on.
India, the leading producer of cotton in the world, can use homegrown cotton in manufacturing and exporting value added products. But since it is a seasonal commodity, speculation leads to an artificial price rise. There has been a rise of 35 per cent in cotton prices in the last 80 days in India, whereas world cotton is available 23 per cent cheaper. The jump in cotton prices has resulted in higher input costs for the spinning sector in India. So the Cotton Corporation of India (CCI) will sell its existing stock purchased under minimum support price to medium and small spinning mills.
Cotton prices reached a high of Rs 35,000 per candy in May this year. The CCI buys cotton from farmers when rates go below the support prices. The opening balance is expected to be 43 lakh bales as on September 30, 2016. Steps are being taken to manage whitefly attack on cotton in the northern states. Cotton exports from India have nearly halted because of the rise in prices. This has forced key importers like Bangladesh, Pakistan and Vietnam to turn to other suppliers. The price rise could subsequently push up fabric and clothing prices and put pressure on the margins of garment makers.
A proposal by European Union officials to restrict nearly 300 substances classified as carcinogenic, mutagenic or toxic for reproduction (CMR) has been slammed by several NGOs. The European Commission had collaborated with the European Chemicals Agency (ECHA) and EU member states to compile a list that it would use to enforce a possible ban on CMR substances in a range of consumer goods.
The EU proposed adding the list—spanning classified dyes and carcinogenic amines, petroleum and coal stream substances, and others—as a specific appendix to Reach, a European regulation concerning chemicals and their safe use. The commission is set to fast-track the restriction in textiles and apparel in two phases.
The first phase of the ban is limited to items containing at least 80 per cent of textile fibers by weight and which may come into direct contact with the skin. These items include apparel, footwear and bedding. Additional CMRs and consumer goods, including accessories, upholstery and floor coverings, will be considered in the second phase.
But several NGOs have criticized the idea for two reasons: there are too many materials under consideration for the proposed restriction to be fast-tracked; the scope of substances is not wide enough.
Minister of state for textile, Ajay Tamta inaugurated India International Garment Fair (IIGF) at Pragati Maidan, New Delhi yesterday. The fair runs from July 18 to 20. The exhibition has been peppered with themed fashion shows. Around 416 exhibitors are showcasing their innovations and products. Indian manufacturers, traders and designers are presenting their products for fashion and fashion accessories to trade visitors. As the sector's primary trade fair of the season, IIGF will set benchmarks for the entire industry.
In his speech, Tamta said this fair provides the Indian exporters an opportunity to exhibit their products that meets the international quality and technology standards. Events like these give a boost to the ‘Make in India’ program as the platform encourages smaller players and debutants to work towards making it a reality. Exporters should focus towards employment generation which is the real need of the hour, he later added.
The Apparel Export Promotional Council (AEPC), under the aegis of Ministry of textiles, Government of India, has been conducting this event for the last 29 years with resounding success. The network has been growing and flourishing year-to-year and forms the basis for the sourcing plans of all major brands in the world of fashion and accessories. With strong support of the government through ‘Market Access Initiative’ grant and incentives offered to buyers under the ‘Reverse Buyer Seller Meet’ scheme, the fair has always attracted buyers from various countries. As Ashok G Rajani, Chairman, AEPC, points out riding on the wave of textile package, this edition of IIGF sees a huge number of exhibitors.
He said with finer details of the package expected soon, the industry would fall in line and all the creases that have developed due to the problems faced till now would be straightened. He added a progressive outlook in the approach of exporters is clearly visible as the January edition of the fair had 322 exhibitors while this time it had 416 exhibitors. The face of IIGF has been evolving and IIGF July 2016 is be an addition to its ever increasing growth rate. As a boutique to wholesaler show, things on offer were further strengthened with new materials, innovative designs, new techniques and services.
Former senior executive of Reebok and Nike, Marilyn Tam, a top leadership speaker and co-author of the just-released book ‘Soul Over Matter’, is on a mission to ensure today’s global business world is armed with the information it needs to continue to make good, socially responsible choices and avoid a repeat of past mistakes. Though her rise to the top of apparel sourcing industry was meteoric but she, will never forget her humble beginnings as a child labourer in Hong Kong making plastic flowers and embroidering needlepoint handbags.
Tam will share her experiences and trade secrets in her keynote address at the upcoming Apparel Textile Sourcing Canada (ATSC) show that makes its debut in Toronto from August 22-24 at the International Centre. Tam will be one of dozens of leading acclaimed international and Canadian industry and government experts who will provide visitors with valuable insights and up-to-date information needed to more easily and effectively navigate through the sourcing process, including merchandising, marketing, e-commerce, compliance and trade agreements over the three days of conference sessions.
ATSC is a first-of-its-kind event in Canada that would bring together hundreds of apparel and textile manufacturers from around the world including China, India, Bangladesh, Mexico, the U.S., Honduras, Peru, Japan, Taiwan and other countries.
Delivering an unprecedented platform for making global industry connections, the event will feature 200 international exhibits showcasing a wide variety of merchandise, from everyday apparel, professional clothing and leisure wear, to carpets, linens and towels, to fashion accessories, hats and socks.
Sweden is looking for a joint project with the Aditya Birla Group in smart textiles as part of their effort to increase bilateral trade. Swedish minister for enterprises and innovation and rural affairs Sven-Erik Bucht stated that if the talks fructify a joint venture between Swedish company Domsjo and the Birlas along with the two governments will be inked.
He further stated that the prime aim of this visit is to boost development of smart textiles using VSF, cellulosic fibre and pulp as an alternative to cotton and hence the Birla group is a natural fit with its easily blendable cellulosic fibre.
Sweden is investing heavily in developing textiles made from sustainable raw materials as it seeks to support a globally successful textile industry, he added. Birla is a pioneer and the world's largest manufacturer of viscose staple fibre (VSF) which is a man-made bio-degradable fibre with characteristics akin to cotton.
Calling for a collective approach to address the climate change challenges, the minister confirmed that Sweden would like to share their experience and ideas about developing an ecosystem based on a circular bio-economy that will build a better environment.
Fashion brands and retailers from Europe and North America including G-Star, H&M, Mango and s.Oliver are determined to continue their work in Bangladesh despite back-to-back terrorist attacks there recently. Rob Wayss, Executive Director for the Accord on Fire and Building Safety in Bangladesh (the Accord), says member brands and retailers would continue their business in Bangladesh.
The Accord, a platform of over 200 apparel brands, retailers and importers from over 20 countries in Europe, and North America, Asia and Australia was set up in 2013 to work for improvement of safety in Bangladeshi factories after the collapse of Rana Plaza complex that resulted in that loss of over 1,100 lives.
Accord has informed that it is not afraid of any attack. Interestingly, officials of Accord have a meeting with the Bangladesh home minister over their security issue on Tuesday (today). Another fashion brand and retailers group, the Alliance for Bangladesh Worker Safety (ABWS) also clarified its position and said garment factories under its membership will stay put in Bangladesh and continue their regular operations there. The ABWS represents 28 major brands operating in Bangladesh, including several Canadian companies like Canadian Tire, Hudson’s Bay Co., Giant Tiger and YM Inc. as well as Gap Inc., Wal-Mart Stores Inc., Nordstrom Inc. and Target Corp.
Accord and Alliance, set to run until 2018, were ahead of schedule in improving safety at the factories in the country. Interestingly, some foreign companies working in Bangladesh's garment industry have suspended travel of their officials in Bangladesh after the terrorist attacks in Bangladesh.
