The US-China trade war may damage Asia’s export-reliant economies. Tightening global liquidity could also weigh on business activity by pushing up borrowing costs, while capital outflows are also a risk. China’s economy is expected to grow 6.3 per cent in 2019, slower than its 6.4 per cent forecast in July. Though domestic consumption in China seems to be quite robust and supporting a 6.6 per cent growth this year, how the further escalation of the trade dispute will directly affect consumer sentiment is unknown. China has set a growth target of around 6.5 per cent this year.

China has started to roll out growth boosting measures as the trade war threatens to put further pressure on the already cooling economy. For Southeast Asia, moderating export growth, quickening inflation, net capital outflows and a worsening balance of payments have dimmed the outlook, with growth this year projected to slow to 5.1 per cent from the July forecast of 5.2 per cent.

However, inflation across the region is expected to remain under control, helped by country-specific factors like moderate food price inflation in India and China and fuel subsidies in Indonesia and Malaysia. Also Asian countries have enough policy space to handle shocks and pressure from currency depreciations.

Adidas, H&M, and Gap are among 12 brands and retailers to have signed the Responsible Sourcing Network’s (RSN) Turkmen Cotton Pledge, which commits companies to not source cotton from Turkmenistan until forced labor in its cotton sector has been eliminated. Other signatories include Columbia Sportswear Company, Designworks Clothing Company, M&S, Nike and VF Corporation.

As per reports, forced labor in Turkmenistan’s cotton production is already an internationally recognised concern, with the UN last year urging the country to promptly put an end to forced labor in the cotton sector. Meanwhile, in May this year, US Customs and Border Protection issued a formal ban on the import of Turkmenistan cotton or products produced in whole or in part with Turkmenistan cotton. Around 42 institutional investors have recently signed a statement urging global home goods and apparel brands and retailers to address grave human rights abuses in the cotton fields of Turkmenistan.

With trade wars and tighter credit, darkening market outlook, the International Monetary Fund (IMF) is poised to cut its forecast for global growth. Three months since predicting the world economy would grow 3.9 per cent this year and next, IMF is no longer quite so optimistic. The fund will update its World Economic Outlook on Oct. 9 ahead of opening its annual meeting in Bali, Indonesia.

While IMF acknowledged global expansion as still being the fastest in seven years, recent data suggests a cooling. Factory activity has plunged from Asia to Europe in September. The protectionist policy is turning into “actual trade barrier,” spreading uncertainty among businesses and consumers. A strengthening US dollar and tightening financial conditions have increased challenges for many emerging markets.

The IMF urged the countries to resolve their trade disputes, warning that the fracture of corporate supply chains could have “devastating” effects. The organisation has repeatedly warned that an all-out trade war could curb growth at a time when the world is enjoying the broadest upswing in years. But the US and China are not backing down, leaving no in sight to a long and bruising dispute.

Belgium hosted Euratex on September 25. The event was an opportunity for insightful conversations on one of the pressing issues in the textile and clothing industry today: the lack of skilled workforce. Programs with focus on skills are among the European Commission’s priorities for upcoming years. Companies are investing in upscaling new and current employees, via training and apprenticeships, to face the shortage of qualified experts in the sector.

Industry testimonials from different companies across Europe illustrated first-hand, diversified view of the challenges being faced by the sector in the context of skills and qualifications: from specific regional difficulties (social, political, economic) affecting different countries to common struggles.

The event also included a spotlight on European skills policies and other EU funded projects on skills development in the textile, clothing, leather and footwear sectors. WT Johnson & Sons, a historic UK textile finishers company, has been implementing personnel training, apprenticeship programs, and flexibility for its retiring workforce to encourage exchange of knowledge between older and younger generations.

The textile and clothing sector welcomed the support of public institutions and called for collaboration between stakeholders to improve its image, develop concrete tools for training, and attract and retain the younger generation.

An innovative, fashionable, and responsible range of denim was displayed by Isko, a leading ingredient brand in quality denim manufacturing, at the second edition of the Green Carpet Fashion Awards. The awards were held at Teatro alla Scala during Milan Fashion Week, on September 23, 2018 and reflected the commitment of fashion companies towards sustainable fashion.

With a unique, eco-conscious mind-set, Isko demonstrated how denim can make the difference in weaving a responsible fashion story by creating influential outfits. The brand is undertaking a new project that challenges the oxymoron ‘denim on the red carpet’. The format aims at reframing the perception of denim. Isko has taken formal denim a step forward.

All Isko products, from traditional denim fabrics to patented technologies, are created at the most advanced technological level, also using innovative and responsible fibres including organic cotton, recycled pre-consumer cotton, and post-consumer recycled polyester from PET bottles.

Indonesia aims to become one of the world's Muslim fashion centers by 2020. The strategy adopted is to boost growth of startups in this field. The country’s exports of Muslim fashion products in 2017 were up 8.7 per cent from the previous period. The country will continue to encourage Muslim fashion industrialists and designers in Indonesia to continue making innovations by increasing their productivity and strengthening their brands to be able to penetrate the export market.

At present, the Muslim fashion industry is projected to be able to absorb 1.1 million of the total 3.8 million fashion industry workers in the country. Indonesia has the largest Muslim population in the world. In addition, Indonesia is among the top five members of the Organization of Islamic State Cooperation, which is the world’s largest Muslim fashion exporter. Others are Bangladesh, Turkey, Morocco and Pakistan.

The market for Muslim fashion products is expanding. One of the drivers is the increase of Muslim population in Indonesia and the world. The value of the global Muslim fashion market is expected to reach $327 billion by 2020. Muslim consumers spend an estimated $230 billion on clothing - more than the combined clothing markets of the UK, Germany and India.

Hong Kong is investing in Vietnam’s apparel and textile industry. Hong Kong has been exploring investment opportunities in Asean countries and sees huge potential in Vietnam. This comes in the wake of huge opportunities created by the recent trade agreements signed by the nations. Agreements like the Asean-Hong Kong Investment Agreement and the Asean-Hong Kong Free Trade Agreement are expected to help both nations access the market in addition to creating ample business opportunities.

Firms from Hong Kong will invest significantly in the production of materials for the garment and textile sector in Vietnam. Esquel, the four-decade-old Hong Kong based company, has been building plants in Vietnam since 2011.

Free trade agreements are expected to help boost the flow of Hong Kong’s investment capital into Vietnam not only in production projects but also in infrastructure, high technology, financial services.

Hong Kong businesses plan to visit some industrial parks in Vietnam. The two sides will jointly evaluate the possibility of production cooperation and investment expansion through research, exploration and market shaping. In infrastructure projects and the production of high-tech products, Hong Kong businesses will explore opportunities for business and investment cooperation. One area of cooperation is warehousing and transportation since Hong Kong is an international shipping and logistics center.

The apparel sector in Kenya has been hard hit by the cost of doing business. This has led to major investors’ shutting down and several others downsizing and reducing their operations. There have been substantial job losses both directly as well as those in the supply and value chains. Factors affecting the sector include: the high cost of energy, cost of labor and logistical challenges which affect the logistics chain including transport and distribution networks.

Investors and the business community have continued to suffer high costs of transportation despite investments in infrastructure. For the business community very little change has been felt in terms of the expected reduction in the real cost of transport for industry. The disorder experienced when it comes to designation of containers has led to huge demurrage charges and unexpected losses for businesses.

The recent eight per cent tax increase on fuel is expected to further drive up the cost of transport, leading to an increase in the cumulative cost of manufacturing in the country. Kenya is among the top exporters of apparel to the US. The country has the capacity to absorb the global shift in manufacturing which is leaning towards African markets.

Kenya is keen to revolutionize manufacturing in the country –the aim is to raise the sector’s contribution to GDP to 15 per cent by 2022 from the current 11 per cent.

Swedish fast fashion giant H&M has launched a new upcycled capsule collection which uses discarded workwear products to make garments such as jackets, chinos and T-Shirts. The new collection will be rolled out from this month through its Cheap Monday initiative, a pilot lab for its sustainability work. Released once a year, the capsule collection explores new materials and processes to create more sustainable products.

The new capsule collection consists of jackets, work chinos, tees, sweats and a bags, all made from discarded workwear to create the worn look. Through this collection, the brand highlights unexplored sources to creating new garments through the upcycling of workwear. Pieces which have become worthless for their primary purpose are still full of value. The process saves on virgin materials, climate emissions, water and chemical use.

The project is initiated by Cheap Monday together with Re:Textile, a project within Science Park Borås in Sweden which focuses on developing structures for circular processes and redesign in the textile industry.

Currently, the majority of industry-scale recycling processes exist solely for the mechanical recycling of cotton pre and post-consumer waste. However, mechanical and chemical innovations are coming up for blended compositions and for assuring the quality of recycled fiber.

Over-population and over-consumption have reached a level that demands a new system of fiber production. The current fiber system is not really sustainable. Noble fibers such as cashmere, mohair, and wool are natural and renewable resources with low impact on the environment. The challenge to recyclers is segregation of different types of fiber.

Almost 150 million metric tons of clothes and shoes are sold every year worldwide. This huge consumption is negatively impacting the environment. More than 70 per cent of the world’s clothing eventually ends in a landfill, of which less than 15 per cent is collected to recycle. Less than one per cent of this is regenerated into new clothing.

Circular economy is a hot topic at the moment. As the world needs more food and urbanization, it’s necessary to reuse and recycle on a larger scale, which is basically circular economy. A fully closed-loop fashion industry is still a long way off. Brands have to commit to the increased collection and recycling of garments, plus an increase in recycling post-consumer textile fibers.