|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1085 |
USD/Ton |
-0.07% |
10/15/2015 |
|
VSF |
2282 |
USD/Ton |
0.14% |
10/15/2015 |
|
ASF |
2293 |
USD/Ton |
0% |
10/15/2015 |
|
Polyester POY |
1022 |
USD/Ton |
0% |
10/15/2015 |
|
Nylon FDY |
2533 |
USD/Ton |
0% |
10/15/2015 |
|
40D Spandex |
5506 |
USD/Ton |
0% |
10/15/2015 |
|
Nylon DTY |
2481 |
USD/Ton |
0% |
10/15/2015 |
|
Viscose Long Filament |
1109 |
USD/Ton |
-0.35% |
10/15/2015 |
|
Polyester DTY |
2784 |
USD/Ton |
0% |
10/15/2015 |
|
Nylon POY |
5864 |
USD/Ton |
0% |
10/15/2015 |
|
Acrylic Top 3D |
1298 |
USD/Ton |
-0.60% |
10/15/2015 |
|
Polyester FDY |
2360 |
USD/Ton |
0% |
10/15/2015 |
|
30S Spun Rayon Yarn |
2863 |
USD/Ton |
0% |
10/15/2015 |
|
32S Polyester Yarn |
1762 |
USD/Ton |
0% |
10/15/2015 |
|
45S T/C Yarn |
2737 |
USD/Ton |
0% |
10/15/2015 |
|
45S Polyester Yarn |
1919 |
USD/Ton |
0% |
10/15/2015 |
|
T/C Yarn 65/35 32S |
2312 |
USD/Ton |
0% |
10/15/2015 |
|
40S Rayon Yarn |
3004 |
USD/Ton |
0% |
10/15/2015 |
|
T/R Yarn 65/35 32S |
2595 |
USD/Ton |
0% |
10/15/2015 |
|
10S Denim Fabric |
1.101 |
USD/Meter |
0% |
10/15/2015 |
|
32S Twill Fabric |
0.928 |
USD/Meter |
0% |
10/15/2015 |
|
40S Combed Poplin |
1.022 |
USD/Meter |
0% |
10/15/2015 |
|
30S Rayon Fabric |
0.747 |
USD/Meter |
0% |
10/15/2015 |
|
45S T/C Fabric |
0.755 |
USD/Meter |
0% |
10/15/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15730 USD dtd. 16/10/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In a thumbs up for the government, India has been ranked as the most attractive investment destination in the world for the next three years, according to 'Ready, set, grow: EY's 2015 India attractiveness survey'. Thirty-two percent of the business leaders from global corporations who were polled for the survey by EY, a global leader in assurance, tax, transaction and advisory services, said India is the most attractive investment destination in the world, followed by China, Southeast Asia and Brazil. The survey, conducted during March and April 2015, includes the views of more than 500 decision-makers from multinational organizations across sectors including industrials, automotive, consumer products, life sciences, infrastructure, technology, financial services and others. The report also presents a detailed overview of foreign direct investment (FDI) inflows and projects, covering sectors, emerging FDI destinations and countries of origin. It finds major gains in perception in comparison to the findings of the 2014 survey in key areas such as macroeconomic stability (up from 70 per cent in 2014 to 76 per cent in 2015), political and social stability (up from 59 per cent in 2014 to 74 per cent in 2015); relaxation in FDI policy (up from 60 per cent in 2014 to 68 per cent in 2015); and the government's efforts to ease doing business (up from 57 per cent in 2014 to 67 per cent in 2015). Among India's most attractive features for doing business, investors rated its vast domestic market and availability of labor as most appealing. “The survey findings are a testament to India's growing appeal with the global investment community. Over the last year, the improvement in India’s macroeconomic indicators, accompanied with the ongoing efforts to revitalize growth has offered new hope to investors. It is an encouraging start and we need to build upon it further,” said Rajiv Memani, EY Chairman of the Global Emerging Markets Committee and India Regional Managing Partner. Speaking at the launch of the report, Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India said, “We are determined to make India an extremely easy and simple place to do business. Our first priority is to do away with the many procedures and rules, followed by bringing in consistency and clarity in all our policies and tax regime and developing a world-class infrastructure.” Among specific reforms expected to drive growth, 89% of the investors said that investment in infrastructure projects and the 100 Smart Cities project would be significant, while both financial inclusion, including Digital India and proposed corporate tax reduction from 30 per cent to 25 per cent, were considered significant by 83 per cent of the respondents. Implementation of Goods and Services Tax (GST) and legislation on land acquisition were also mentioned by investors as important for attracting FDI. Gaurav Taneja, Partner and National Leader – Government & Public Sector - EY India, says, “With the pro-reform government at the center, the state governments in India have also embarked on adopting policies and processes to attract investments. These include reforms in labor laws, single window clearances, online compliance and land availability, which play a very significant role in investors' choice of locations. Importantly, there is also a perceptible shift in attitude to one of welcoming investments.”
Robust investor confidence is also reflected in FDI inflows, with the 2015 India attractiveness survey citing a sharp turnaround. The report highlights data from FDI Markets data, indicating that in the first six months of 2015, India has become the top FDI destination with $30.8 billion of FDI inflows, moving up from the fifth position in the corresponding period last year. Earlier, during the calendar year 2014, India reversed a two-year decline with FDI inflows of $25 billion, registering a 32 per cent increase over the previous year. In the same period, the number of FDI projects rose 37 per cent to reach 680, contrasting with a 3 per cent decline worldwide. More than three out of five respondents said they had plans to invest in India over the next year and 62 per cent are looking at manufacturing, both to serve the Indian and global markets from India. Most of these respondents prefer to expand existing operations, followed by expansion through acquisitions and, if necessary, by joint ventures and alliances. Compared to the 2014 survey, the number of respondents who believe that India will be among the world's leading top three destinations for manufacturing by 2020 has increased from 24 per cent to 35 per cent, while those who believe India will evolve as a regional and global hub for operations is up from 9 per cent to 21 per cent. The survey found that within six months of its launch in September 2014, the Indian Government's Make in India programme resonated with investors, with 55 per cent of respondents saying that they are aware of the initiative. Those aware of Make in India are more upbeat about expansion plans, with 70 per cent stating that they are likely to expand or relocate their manufacturing facilities to India in the next five years. Bengaluru, Mumbai, Delhi-NCR, Chennai and Pune continue to be the top destinations for overall FDI. Among emerging cities, global business leaders ranked Ahmedabad, Jaipur, Vadodara, Coimbatore and Visakhapatnam respectively as the top five emerging cities for FDI. According to the survey, investors are showing increased enthusiasm for India's emerging cities with a 79 per cent surge in FDI in 2014, and 21 per cent in metropolises. (SH)
Source: Fibre2fashion
The Trans-Pacific Partnership (TPP) was announced earlier this month. As per this agreement, exporters from TPP member countries will get preferential access in the US market vis-a-vis exporters from non-TPP member countries such as India. This would put Indian textile exporters in a disadvantageous position, industry experts have said. The Trans-Pacific Partnership (TPP), a free trade agreement involving 12 countries of the Pacific Rim, will adversely affect the Indian textile industry as high duty and yarn-forward rule of origin for non-participating countries will make textile exports to these countries difficult. “The TPP deliberately excludes China and India, which makes it potentially dangerous. Trade diversion as a result of India not being a part of TPP will be around $4-5 billion over 10 years,” Arvind Sharma, vice-president (planning, costing and outsourcing) of JCT Limited told Fibre2Fashion.com. “Exporters from TPP member countries will get preferential access in the US market vis-a-vis exporters from non-TPP member countries such as India. This will put India’s garment exports to the US at a disadvantage as that country imposes high duties on readymade garment imports.” While Vietnam will have zero-duty access to the US market for textiles, Indian players will have to pay 14-32 per cent duties, he said. Elaborating on the yarn-forward provision, Ruchi Sally, director of Elargir Solutions, said, “This provision in the agreement will require clothing to be made from fabric manufactured in one of the free trade partner countries to qualify for duty-free treatment. India is one of the largest exporters of fabric and yarn to countries like Vietnam, enabling them to export to countries like the US. With this rule, Vietnam will need to produce locally.” India would be at loss as this provision would make Indian textiles uncompetitive in the TPP market, she asserted. Talking about solutions to the problems posed by the TPP, Sharma said India needed to concentrate in vigorously pushing its exports to non-traditional, emerging markets like Africa, Latin America, etc. Also, India should take advantage of its existing trade agreements with Singapore and Japan, as well as those with Australia and New Zealand that are in a negotiating stage. Similarly, Sally pointed out that India was actively engaged in ASEAN Regional Comprehensive Economic Partnership (ARCEP) which consists of ASEAN and ASEAN FTA countries; hence, all countries which fall under the ASEAN FTA would be markets to target. (MCJ)
Source: The Financial Express
The TPP involves nations that represent roughly 40% of global GDP and one-third of world trade. India should aggressively enter into as many free trade agreements (FTAs) as possible with select textile markets in Asia and the European Union (EU) to protect its textile and apparel industry, and offset the negative impact of the recently-negotiated Trans-Pacific Partnership (TPP) between the US and 11 other Asia-Pacific nations, a report by industry body CII and Wazir Advisors said on Thursday. “The TPP is a trade agreement that will open markets and enable countries like Vietnam zero-duty access to the US market for textiles, while Indian players will have to pay 14-32% duties, which will make them uncompetitive. It would have been much better had India too joined the TPP,” the CII-Wazir report said, stressing that an investment of R1 crore in textiles leads to 70 direct jobs and a revenue of R5 crore. Hence, it can be the cornerstone of the new government’s policy of increasing share of manufacturing in GDP to 25 % and be the key driver of Make in India. It is, however, important that India eases labour laws and creates an enabling infrastructure, according to Prashant Agarwal, joint managing director, Wazir Advisors. The TPP would impact the Indian textiles industry because of the yarn forward provision, which requires the yarn and fabric used in final product to be manufactured in one of the free trade partners to qualify for duty-free treatment under the trade pact. At present, India exports yarn and fabric to Vietnam, which then exports the finished products to countries like the US, the report said. The TPP involves nations that represent roughly 40% of global GDP and one-third of world trade.
Source : The Financial Express
The rupee is likely to remain steady for the rest of the fiscal helped by strong macroeconomic fundamentals, which will lead to higher capital inflows and a comfortable balance of payment situation, says a report. "The key reasons for the expecting stability in the rupee are better macroeconomic fundamentals of the economy among the emerging economies, a comfortable balance of payment situation, the postponement of policy normalisation by the US Fed to December 2015 or maybe to 2016 and a healthy capital inflow," India Ratings and Research said in a report today. The rating agency expects the rupee to trade in the range of 64.50-66.25 for the remainder of 2015-16. The rupee today opened at 64.74 as against the previous close of 65.03. It does not foresee much turmoil in the global financial market if the US Fed raises rate either in December 2015 or takes it to 2016. The report said some short-term volatility in the rupee can occur due to readjustments carried out by foreign institutional investors in their portfolios towards the year end or in the beginning of 2016. "However, since the rupee is currently overvalued in terms of the real effective exchange rate, some amount of nominal depreciation in the currency will only enhance the competitiveness of the country's exports and therefore, is unlikely to lead to any policy or RBI intervention," the report said. The decision of Central Bank of China to allow the yuan to depreciate by 3.4 per cent over the two consecutive days - August 11 and 12, 2015 - rattled the emerging market currencies in that month. Despite witnessing some volatility and depreciation, the rupee has remained one of the most stable emerging market currencies, the rating agency said. According to the report, the better macroeconomic fundamentals of the country in August 2015 saved the day for the rupee.
Source: Tecoya Trend
Exports of goods fell for the 10th straight month in September, plunging 24.33 per cent to $21.84 billionas demand from key markets continued to shrink. The decline was spread across major sectors such as petroleum goods, readymade garments, electronics, engineering goods, gems & jewellery, chemicals, leather and agricultural products, according to quick estimates released by the Commerce Ministry on Thursday. Fall in imports was sharper at 25.42 per cent to $32.32 billion during the month. As a result, trade deficit narrowed to $10.47 billion in September 2015 compared to $14.47 billion in September 2014. The drop was prominent in sectors such as petroleum, gold and silver, project goods, transport equipment, iron and steel, coal and coke, transport equipment and precious and semi-precious stones, the official release added. The continuing fall in exports is in line with the lowering of world trade growth projection for 2015 by the World Trade Organisation to 2.8 per cent from 3.3 per cent estimated in April this year, due to falling import demand from China, a drop in commodity prices including oil, and exchange rate fluctuations. SC Ralhan, President, FIEO, said: “There needs to be an immediate re-introduction of interest subvention scheme, an expansion of benefits under merchandise export incentive scheme (MEIS) and a reduction of transaction costs by reducing procedural complexities and paper work.” The government is yet to implement the interest subvention scheme for exporters, provided for in this year’s Budget, which would result in a lowering of interest rates for exporters. Exports in April-September 2015-16 were $132.93 billion, 17.63 per cent lower than the same period last year. Imports during the period stood at $200.93 billion, 14.16 per cent lower than the same period last year. Trade deficit for April-September 2015-16 was estimated at $ 67.99 billion, which was lower than $72.69 billion recorded during April-September, 2014-15. Oil imports of $6.62 billion during September, 2015, were 54.53 per cent lower than the same month last year. During April-September, 2015-16, oil imports worth $48.12 billion were 41.58 per cent lower than oil imports in the corresponding period last year. Non-oil imports during September, 2015 at $ 25.69 billion were 10.68 per cent lower than imports in September, 2014. The fall in non-oil imports during April-September, 2015-16 at $152.80 billion was much lower at 0.72 per cent.
Source: The Business Line
The Confederation of Indian Industry (CII) has signed an MoU with a Spanish consortium for taking up initiatives under the smart city mission, it said in a statement on Thursday. The Spanish consortium is led by information technology and defence systems company INDRA Systems Ltd. This is the fifth such MoU that CII has signed for smart cities. The industry body has also signed similar pacts with German, US, Indian and Japanese consortiums. Ambassador of Spain to India, Gustavo De Aristegui, said that Spanish firms are market leaders in India in some of the verticals and expressed hope that the MoU would not only stimulate the ongoing smart city mission in India but would foster stronger economic relationship across other verticals as well.
Source: The Business Line
Keen to improve India’s attractiveness as an investment destination, the government has now decided to speed up clearances for foreign direct investment proposals and is also in the process of simplifying rules governing such proposals. The Foreign Investment Promotion Board will now meet twice a month and try to take up all the FDI proposals submitted up to a month before. The government’s decision to hasten and simplify FDI clearances comes at a time when India has been ranked as the top destination for foreign capital. “The objective is to ensure that all FDI proposals submitted to the FIPB up to four weeks before the meeting will be taken up in the first meeting of the month. In the second meeting, all deferred or pending proposals will be taken up,” said an official familiar with the development. The FIPB is scheduled to meet on October 19. “This system of a meeting every fortnight would continue to ensure that there is no backlog of proposals,” said the official, adding that it would also be ensured that ministries send in their responses to the proposals on time. Simultaneously, the Department of Industrial Policy and Promotion (DIPP) is also working to simplify the consolidated FDI circular to make it easier for investors to comply with. As part of the exercise, the DIPP is examining how guidelines can be streamlined and sector specific conditions removed. Instead, the investor would be expected to follow norms laid down by the sectoral regulator. Further, the sectoral regulator would also be responsible for monitoring and ensuring compliance by the investor. “Discussions however, are at a nascent stage and it has to be seen how this will work out,” said a second official, adding that strategic sectors such as telecom would not be part of this revamp.
Source: The Business Line
Union minister of state for textiles Santosh Gangwar has been urged to increase the minimum support price (MSP) for cotton from Rs 4,100 to Rs 5,000 per quintal by the Irrigation and Marketing Minister T Harish Rao in his letter to the Union minister on Wednesday. Harish Rao said that due to dry spells in the state, the farmers raised cotton on a large extent instead of raising food grain crops. As a result, the expected cotton yield would be 284 lakh quintals this year against last year’s 205.8 lakh quintals. With the increase in input costs, the present MSP would not help the farmer. The minister also sought the Centre to relax the norms of purchasing; the Cotton Corporation would purchase cotton having 8 to 12 percent moisture. The moisture content in cotton would be 12 to 20 percent in October and November which CCI need to take into account while purchasing cotton. Also there should be no cap on the purchase of cotton. CCI needs to dispense with the norm of purchasing only 40 lakh quintals of cotton a day, the minister said.
Source: Yarn and fibre
If Raymond exports from Ethiopia to the US it would not pay import duties of 18% which it would need to pay if it exports from India. Raymond is setting up a 2 million units per annum capacity plant in Ethiopia, at a total investment of $100 million, to manufacture and export woolen-blended, cotton-blended jackets, in order to take advantage of a more favourable duty structure and local incentives. If Raymond exports from Ethiopia to the US it would not pay import duties of 18% which it would need to pay if it exports from India. Again exporting to Europe from Ethiopia would save the company 8%-12% in terms of import duties while exporting to Japan would give it a preferential access. That’s because Ethiopia has a 10-year duty-free trade agreement with USA, Europe and a preferential trade pact with Japan. India does not have such agreements or advantages. Apart from the trade benefits, Raymond is also being provided land on long-lease by the Ethiopian government. It will also get electricity at a price which is a third of the cost of power in India, apart from the labour charges, which are almost half of India. Thus Ethiopia, with favourable trade pacts combined with lower operating costs, would in turn reduce the cost of production for Raymond, and provide greater access to two of the biggest markets – the USA, and Europe – and a preferential access to Japan, another large market, and make it able to compete with other global companies. Currently, Raymond makes close to 2 million jackets at its Bengaluru facility—primarily woolen-blended and cotton-blended jackets—and exports part of them to the USA, Europe and Japan. In early September, the company had informed the stock exchanges that it would “invest to set up garmenting facility in Ethiopia, East Africa”. In a response to an e-mailed query, Raymond noted it was exploring an option to set up a garment manufacturing facility in Ethiopia to be cost competitive for export markets. The new unit will be housed in Raymond’s fully-owned subsidiary Silver Spark Apparel, through its Middle East-based unit in Sharjah. The unit is to be located at Awasa, in Ethiopia. Silver Spark, a subsidiary of Raymond, was set up in 2003 for manufacturing suits and formal trousers, at a factory in Bengaluru. In FY15, Silver Spark Apparel reported a 27% fall in profits at R16.24 crore, while its revenue grew 25% from a year earlier to R392.78 crore. The move to Ethiopia comes after Gautam Hari Singhania, chairman and managing director of Raymond, saying that the growth prospects of Indian textile sector were “constrained by many challenges” such as increase in wage costs, power tariffs and interest costs, as well as restrictive labour laws, and intensified competition from other low-cost countries like Bangladesh.” “Globally, favourable trade policy reforms would also allow the industry to expand its trade partners, improve its export competitiveness and contribute substantially to the nation’s income,” he told shareholders earlier this year.
Source: Yarn and fibre
Riding the online wave, Welspun India, one of the largest home textile company, launched its online retail portal shopwelspun.in. The company intends to generate $50 million revenue through online sales by 2020.The web portal will also offer a digital community that will engage with consumers and will be backed by superior technologies in payment gateways, back-end integration and support services such as digital marketing, data analytics and logistics. Speaking to media, Dipali Goenka, CEO and Executive Director, said the growth in online has been exciting and would continue to growth with the Government thrust on Digital India. “At present, our global sales through online medium are about $11 million,” she said. Foreseeing managing logistics as a challenge, Goenka said: “Though the company is geared up to handle logistics, I believe, logistic providers would make more money than e-commerce companies,” she said. The company has tied up with partners, including India Post, for managing the delivery of goods. The interactive portal will offer wide collection from the premium brand Spaces-Home & Beyond, while Welhome caters to the value segment by offering products at affordable price. Shop welspun.in also brings the exclusive brand ‘Spun’, which are designs intricately handcrafted by weavers and artisans from Kutch.
Source: The Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.68 per barrel (bbl) on 15.10.2015. This was lower than the price of US$ 46.86 per bbl on previous publishing day of 14.10.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3025.97 per bbl on 15.10.2015 as compared to Rs 3051.12 per bbl on 14.10.2015. Rupee closed stronger at Rs 64.82 per US$ on 15.10.2015 as against Rs 65.11 per US$ on 14.10.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 15, 2015 (Previous trading day i.e. 14.10.2015) |
Pricing Fortnight for 16.10.2015 (Sep 29 to Oct 13, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.68 (46.86) |
47.70 |
|
(Rs/bbl |
3025.97 (3051.12) |
3115.29 |
|
|
Exchange Rate |
(Rs/$) |
64.82 (65.11) |
65.31 |
Source : Ministry of Textiles
A Chinese delegation to the India Carpet Expo at Varanasi has shown keen interest handmade carpets. The textiles Ministry now believes China could be a major market for Indian handmade carpets, according to an official statement. The Carpet Expo drew more than 350 overseas buyers, in addition to 276 buying representatives, in the first three days. A delegation from Yiwu city of China visited the Expo on an invitation from the Carpet Export Promotion Council (CEPC). Wang Bi Rong, Director General Bureau of Commerce led the eight-member delegation to take stock of Indian handmade carpets displayed by 303 exporters from all over India. The CEPC delegation was led by its Chairman Kuldeep R. Wattal. A presentation was made about the economy and market position of the Yiwu City by Wang. The Chinese delegation said it was impressed by the high quality of Indian handmade carpets, which they did not find in China. The delegation was confident that the Indian handmade carpets would sell very well in Yiwu City. The Chinese expressed a desire for a Memorandum of Understanding (MoU) with the CEPC for promoting and selling Indian handmade carpets in Yiwu. CEPC Chairman Wattal expressed hope that such collaborations would boost exports of Indian carpets to China. Wang also expressed the desire to have a strong representation of Indian handmade carpet exporters in Yiwu City in their May 2016 show. The CEPC Chairman appreciated the efforts of the Chinese delegation's keenness to popularize Indian carpets China. Wattal said the industry is looking forward to China as a whole and Yiwu City in particular.
Source: Fibre2fashion
Philippines is left with only five textile mills in the knitting business which also service finishing mills as more than 50 textile mills dead or dying due to excessive power costs and cheap fabrics from China. Out of the five textile mills, Asia Textile Mills owned by the group of Ong and Lee in Calamba, Laguna is enlivening with the help of Chuck Lazaro, who is now its industrial partner. Today, Asia Textiles is producing jeans made of abaca fiber. Abaca fiber as raw materials for jeans is remarkably stronger than polyester or cotton. The company exports semi-processed materials to Japan. Asia Textiles buys the fiber from Tabaco, Albay. The Bicol region is known as best suited for abaca. Lazaro’s company uses less than 10 tons a year of abaca fiber. It took long and some problems that cannot be solved – power costs and cheap textiles from nearby China – for Lazaro to wake up to the possibility and necessity of using abaca as textile raw materials, considering nearly all of annual production finds its way into the foreign market. According to Lazaro, there are good possibilities dead or closed textile mills may be reopened when abaca fiber is converted into yarn. He pointed out that the abandoned mills may have to be retooled to adjust to abaca fiber. Abaca is said to be long fiber and therefore makes excellent raw material for textile – even for specialty paper like currency notes – abaca fiber may completely stop the importation of cotton and polyester woven into yarn to make textiles. Abaca is mostly planted with other cash crops. Abaca fiber has been known all over the world from the Spanish times as Manila hemp. It lost its luster to synthetic and other chemical fibers which practically edged out cotton. Production of abaca fiber appears to be increasing because of its unique qualities compared to other textile raw materials such as synthetics (mostly polyester) and cotton. From January to November last year, abaca fiber production was recorded at 427,700 tons, increasing from 354,490 tons in the previous period. The rest of the production is used locally for cordage, paper, crafts and textiles. Considering almost 90 percent of the fiber is exported to the United States, Japan and Europe, its potentials as raw material for textiles appear bright. Asia Textile is not making yarns from abaca fiber yet but Lazaro said that the company will eventually consider it.
Source: Yarn and fibre
Trans-Pacific Partnership (TPP) trade agreement is expected to create a new foreign direct investment (FDI) trend in Vietnam which would also have a positive impact on the country’s improvement of investment climate, said Duane Morris Vietnam LLC’s general director Oliver Massmann. He noted that determining the actual working of the new FDI trend required a detailed analysis of the content of the agreement and its implementation. Vietnam, following the TPP provisions, must adhere strictly to principles such as transparency, predictability, the stability of the investment environment, and the strengthening of protection for intellectual property rights. This will also create an attractive environment in Vietnam, he explained. Vietnam will also have a price-related competitive advantage due to the preferential taxation that TPP countries will grant to Vietnam, over China, India and Thailand as they are not included in the deal and which are Vietnam’s competitors in the textile industry, according to Oliver Masmann. Meanwhile, head of the Central Institute for Economic Management (CIEM), Nguyen Dinh Cung also commented that the TPP, which would create a free trade zone that include 40% of the global economy, would impact FDI in two distinct ways.
First, the deal will include provisions that directly reduce barriers to investment by improving intellectual property protection, removing barriers to investment in services, and raising the consistency and transparency of regulatory regimes across partner countries. Second, reducing barriers to trade will help increase FDI as trade and investment complement each other. The signing of the TPP is expected to give many trade and investment jackpots to Vietnam. The wave of FDI coming into Vietnam has been progressively increasing in recent years and is expected to continue for years to come. Garment and textile firms are expected to greatly benefit from the TPP. The skills of Vietnam’s workforce and Vietnam’s low cost of doing business have already attracted garment and shoe investments for years, said Sesto Vecchi, member of the AmCham Board of Governors and managing lawyers of Russin & Vecchi. It is no surprise that just a week after the deal’s negotiations, an Indian textile and garment delegation entered Vietnam aiming to set up an Indian textile industrial park to tap into the TPP advantages for Vietnam. Other investors in the textile and shoes sectors are also preparing their entry to the Vietnamese market to cash in on the premium from the TPP.
Source: Yarn and fibre
In Pakistan, the textile spinning mills had shut down the production on Wednesday to protest against government anti-industry policies which increased the cost of doing business in Pakistan. The recent hike in power tariff and gas infrastructure development cess (GIDC) add around Rs 170 billion to the cost of doing business every year, said Tariq Saud, chairman of All Pakistan Textile Mills Association (APTMA). He said that this strike was successful which also included leading groups in spinning sector, right from Karachi to Khyber Pakhtunkhwa. Some industry leaders said that the protest was also against the delayed announcement of the textile relief package by Prime Minister Nawaz Sharif. The textile millers wore black bands to observe a Black Day, where they also displayed black banners, flags and buntings to protest. Many textile workers marched in front of their mills; however, it was a peaceful protest across the country. On the other hand, the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) announced that the garment units did not shut its operations on 14th October as Black day. All units of value added sector from Karachi to Pishawar remained open on Wednesday.
Source: Yarn and fibre
Pakistan can improve its textile exports to Japan, the visiting representatives of the Japan International Cooperation Agency (JICA) have said, as per Pakistani media reports. To enable Pakistani textile manufacturers to increase their exports, a new programme will begin from February next year, and a website of JICA and Trade Development Authority of Pakistan (TDAP) which has been launched will provide details about Japanese markets to exporters, Hideaki Shimizu, JICA’s advisor to TDAP said in his address to members of Faisalabad Chamber of Commerce and Industry (FCCI). Shimizu emphasised on exporters enhancing the standard of products for the quality conscious Japanese consumers. He said that both the countries must have a free trade agreement (FTA) and exporters in Pakistan must pressurise the government for it. Jameel Ahmed, vice president FCCI, stated that there was an urgent requirement for signing memorandum of understanding with prominent Japanese chambers and expressed need for exchanging bilateral trade delegations. In reference to the Pakistan Japan Textile Day, a one-day textile event organised by JICA and TDAP earlier this week, Shimzu said many Japanese buyers attended the textile event and they had productive meetings with domestic exporters. At the event, senior expert of Japan Textile Importers Association Yasuhiro Shoda pointed out that Pakistan needed to work on its process design with better production management methods and stressed on improving the quality of its textile products for the Japanese consumers. TDAP director general Shahzad Hussain Rana said that Pakistan had a strong export-based textile industry and it is the right time for taking positive actions in order to penetrate into Japanese markets. Last year too, TDAP and JICA had organised a one-day workshop with the objective of creating awareness among Pakistani exporters regarding the market requirements in Japan, as well as promoting exports of ‘Made-in-Pakistan’ products to the country.
Source: Fibre2fashion
Bangladesh Bank (BB), the central bank of Bangladesh, has signed a cooperation agreement with International Finance Corporation (IFC), an international financial institution and a member of the World Bank, to jointly frame guidelines for a policy aimed at reducing the social and environmental risks in the textile industry of Bangladesh, according to media reports. During the signing ceremony of the deal, called Environmental and Social Risk Management (ESRM), SK Sur Chowdhury, deputy governor of BB asserted that this agreement will reduce the social and environmental risks associated with investing in the textile industry of Bangladesh faced by banks and other financial institutions. The banks and financial institutions will be provided necessary training on the formulated guidelines. ESRM deal was signed by the GM of Sustainable Finance department, Manoj Kumar Biswas on behalf of BB and programme manager M Masrur Reaz on behalf of IFC. (MCJ)
Source: Fibre2fashion
