Textile and garment firms have reported buoyant performance to date this year due to a multitude of factors, including escalating trade tensions between the US and China. Many surveyed firms have attributed rising revenues to a sharp jump in order volumes. In addition, the trend of foreign (mainly US) textile and garment importers shifting orders from China to Vietnam to mitigate risks has become more apparent amidst the escalating US-China trade tensions.

Tran Nhu Tung, member of the board of management at Thanh Cong Textile Garment Investment Trading JSC says in the first eight months of this year, they posted VND2.46 trillion in cumulative revenue ($109 million), equal to 80 per cent of its full-year plan, while its after-tax profit hit VND185 billion ($8.2 million), a 44 per cent jump over the projection and fulfilling its full-year profit target. According to Tung, this upbeat outcome came in the wake of the company’s efforts to restructure production and boost production capacity.

Similarly, TNG Investment and Trading JSC rose more than 25 per cent in the past two months. In the first eight months of this year, the company reported VND2.36 trillion ($104 million) in cumulative revenue, reaching 86 per cent of its full-year, while its profit came to VND118 billion ($5.2 million), a 54 per cent jump over the same period last year and reaching 93 per cent of the full-year profit target. This year, TNG estimates reaching VND3.45 trillion ($152 million) in revenue and VND157 billion ($6.9 million) in after-tax profit.

About 60,000 tons of cotton have been harvested in Tajikistan in this cotton harvest season. Since the beginning of the cotton harvest season, 16.2 per cent of the planned amount has been harvested. As many as 1,85,817 hectares were allocated in Tajikistan for the cultivation of cotton this year. Cotton fields were expanded at the expense of grain and fodder crop areas.

In 2017, 3,80,000 hectares of cotton were harvested in Tajikistan, 5.2 per cent more than in 2016. Until the middle of the 2000s, cotton was considered one of the two main export goods of Tajikistan (along with aluminum). In the 1980s, about 8,00,000 tons of cotton were harvested annually in Soviet Tajikistan.

At the same time, most of the cotton fiber produced in the country is exported as raw materials. The processing of these products within the country is insignificant. However, cotton makes an important contribution to both the agricultural sector and the country’s economy. Along with primary aluminum, cotton has been one of the major export items for Tajikistan. In 2015, cotton fiber accounted for 23.1 per cent of Tajikistan’s exports. In 2016, cotton fiber’s share in Tajikistan’s exports fell to 16.1 per cent. Last year, cotton accounted for an estimated 13.5 per cent of Tajikistan’s exports.

Japan and Vietnam are strengthening ties. Bilateral economic cooperation has developed in recent times. Japan is the largest foreign investor in Vietnam. More than 3,100 Japanese businesses have undertaken investment in Vietnam, marking an increase of 40 per cent in four years. Japan has been implementing an array of collaboration programs with Vietnam in developing hardware infrastructure, such as bridges, seaports, airports, and expressways. Japan has partnered with Vietnam in perfecting the latter’s legal system, training human resources, and improving labor productivity.

In the coming time, together with expanding investment areas and scale, Japan expects to continue cooperating with Vietnam in infrastructure development, thus supporting its sustainable development. Vietnam is now in a great transition phase in terms of politics and economy, with abundant energy sources for growth.

Japan also hopes to join hands with Vietnam to improve its administrative capacity. Japan is prone to natural disasters and Vietnam is one of the countries hardest hit by climate change. The countries will work on minimising the negative impact of climate change.

Both Vietnam and Japan are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In the context of rising protectionism in several economies, bringing the CPTPP into force at an early date is particularly crucial for both countries.

Marchi & Fildi, leading Italian manufacturer of Ecotec smart cotton, will launch Spring/Summer 2020 collection at the upcoming Filo trade fair for yarns and fibres, to be held in Milan next week. The company, in this collection will opt for organic vegetal texturing, soft tonalities for jacquard open, clean plaids, bayaderes and new athleisure semi plains for Polaris and Chagall qualities.

The collection will include new casual textures and crisp, dry Prince of Wales checks work in Pegasus yarns. Phoenix will be colourised in fancy mesh stripings., while Ginerva luxe quality will comprise the lightest double face combinations or elaborate open lace effects. Manipulated pleated stripes and tonal jacquards or in random surface textures using smart blended Phoenix qualities will denote texture and movement.

This season, contemporary brand adoptions include Ice Monkey Berlin. The brand designs timeless and luxurious T-shirts and polos. As a young fashion brand from Berlin, it is constantly looking for smart solutions. Therefore, the brand selected several Ecotec jersey qualities produced by Tintex Textiles for its capsule collection 2019.

The International Apparel Federation (IAF) and MODINT have introduced the complete list of sponsors for the 34th IAF World Fashion Convention. The event will draw an estimated 250 delegates from over 20 countries worldwide. The sponsors have been divided into four categories: Diamond, Platinum, Gold and Silver.

The Diamond Sponsor includes C&A Foundation, a corporate foundation that works with the change-makers of the world, gives them financial support, expertise and network to enhance the functionality of the fashion world. Platinum sponsor GS1 provides global standards for efficient business communication, while Icecat is a global publisher and syndicator of product information for the e-commerce market. Gold Sponser TKI Dinalog/HIDC offers the best in lifestyle supply chain research, I Heart Studios offers highly creative visual content business, Pivot88, a cloud-based collaboration platform structures, automates and standardises quality management and compliance processes.

Silver sponsors for the event include MOTIF, an apparel knowledge hub, Retailisation software; Foursource , a global B2B network for apparel and textile sourcing; Browzwear’s providing 3D solutions for apparel design, development and merchandising; EE Labels, a label company, WRAP, a company dedicated to promoting safe, lawful, humane, and ethical manufacturing and Inspectorio, a cognitive quality and compliance platform empowering a transparency network

Bronze sponsors include Fair Wear Foundation, Gerber Technology, Modint, Credit& Finance, Euler Hermes, YKK, A&E, Neenah Coldenhove, AQM

Garment workers in Karnataka get paid wages that are 25 per cent below the urban poverty line. Though in many families, there are two wage-earners earning subsistence wages, one in seven garment families has only a single woman wage-earner.

The industry refuses to consider any substantial increase in wages, claiming that it would undermine profitability. The garment industry uses low wage states as the reason to oppose wage increase in states with higher wages. This is exactly what the garment industries in Karnataka are doing. They argue that since minimum wages in Karnataka are higher than in other states increasing wages would have an adverse impact on an industry that is already facing tough international competition.

Garment manufacturing in Karnataka is mostly for export to developed countries. In fact a large proportion of the manufacturing in the Indian garment industry is for the export market. In Karnataka the RMG export industry is mainly concentrated in urban regions around Bangalore. These units threaten to shift to Telangana especially when the issue of wage revision comes up. That means management has the upper hand in determining the minimum wages of workers in the textile industry, spinning industry and the printing and dyeing industry.

India’s cotton exports to China may see a fivefold jump after China slapped additional duty on imports of the fiber from the US amid a trade standoff between the two economies. Indian traders have already entered into a forward contract with Chinese buyers to deliver about 1.2 million bales between November and January.

However, a likely decline in India’s cotton production in the next season, low closing stocks and higher minimum support prices might dent India’s export prospects. Thanks to the new minimum support price, cotton prices will rise by a whopping 28 per cent. Given the conversion ratio of around 33 per cent the prices of finished cotton will be up 20 per cent from current global prices. At this price, India’s cotton exports will be uncompetitive, though the rupee’s fall would cushion the fall a bit.

China’s cotton stocks have reduced and it has become a net importer to meet its garment demand. It has an annual output of 35 million bales against consumption of about 50 million bales. The country has not been able to increase cotton production in recent years since the focus shifted to food and feed crops. China’s buffer cotton stocks began depleting since 2015. India’s cotton output for the 2017-18 season is estimated as seven per cent higher from the previous year. Next season’s output is expected to be slightly less than this year’s.

A large number of garment workers located in H&M’s supply chain get a living wage. A huge proportion of the company's product volume is now produced in factories that have improved on wage standards and human rights. H&M launched its fair living wage strategy in 2013, aiming at ensuring that all supply chain workers receive a wage that is enough to support a family and is earned during legal working hour limits.

Since 2013, the number of factories supplying to H&M covered by the strategy has increased from three to 655. More than 9,30,000 workers are located in these factories, which account for 84 per cent of product volume. As a buyer, H&M focuses the management process of wage standards, rather than imposing specific wage levels for suppliers. The fashion retailer is working with factories to embed fair negotiating processes between governments, employers, worker representatives and the wider labor market.

More than two-thirds of H&M’s product volume is sourced from factories that are implementing improved wage management systems – covering 6,35,000 workers. The company has a time-specific target to ensure that worker representatives cover 100 per cent of factories that H&M works with across Bangladesh. Globally, 73 per cent of H&M’s product volume is located in factories that have democratically elected worker representation.

FESPA Africa 2018, held from September 12-14, 2018 attracted 6,494 visitors, with 5,907 unique visits – an increase from 2017 representing the growth and opportunities in the region. The visitors spanned top 10 countries from outside South Africa including Zimbabwe, Botswana, Mozambique, Zambia, Swaziland, Lesotho etc. Representation from other countries also included: Namibia, Nigeria, Tanzania etc.

Along with the latest machinery, products and software solutions, visitors were able to particpate in a range of educational features such as the textile experience, a hands-on workshop where printers could learn different techniques by Charlie Taublieb, T-shirt and bag printing workshops, CorelDRAW workshops, the Speed Wrap Challenge and Business Opportunities in print and signage, which were held on various exhibitors’ stands.

China, Japan and South Korea are working toward a free trade agreement. Speeding up FTA negotiations is expected to benefit the three countries together in the face of threats from unilateralism and protectionism. While China may seek an agreement more urgently, Japan and South Korea are more cautious. Negotiations are progressing slowly due to the countries’ competitive industrial structures.

To further accelerate an FTA, the three countries may exercise greater flexibility and creativity than before on the major issues, such as goods, services and investment. On trade, in particular, they may develop a mentality to bring about fair contributions and a balance of interests, reflecting differences among the three countries in their trade structures.

The three countries have relatively strong economic ties and together account for 20 per cent of global GDP. But South Korea and Japan are allied to the US, which sees China as a strategic rival. China has stepped up efforts to build a global trade network with greater use of FTAs to diversify its markets and counter protectionism. So far China has 17 FTAs with 25 countries and regions, and is in talks over 12 new or upgraded FTA deals.

Such efforts have become more evident in the past two years, especially after the US began imposing punitive tariffs on Chinese goods to push the world’s second largest economy to lower its market barriers.