The full recovery for Indian apparel players is likely to be delayed to 2022-23 due to the resurgence of the COVID-19 pandemic cases, according to a report. Icra Ratings expects the full recovery for Indian apparel players to be prolonged and pushed back to the financial year 2023 amid rising COVID cases in India and some of the key export markets.
Their business performance in the financial year 2022, however, is expected to be better than the financial year 2021, supported by continued favourable progress on the vaccination rollout and a material shift witnessed towards online shopping, according to the Icra NSE 0.38 % report.
This will cushion the adverse impact on the brick-and-mortar outlets, helping companies report a better performance compared to last year, the report noted.
Further, it stated that lockdown restrictions are likely to be more targeted and regionally focused compared to the national lockdown implemented last year, and companies are better prepared to follow protocols, respond to restrictions and minimise loss of operations.
"While the demand for apparels had improved in recent quarters, it remained below pre-COVID levels. This apart, the recent rise in COVID cases in key metros and tier-I cities is likely to keep the demand weak in the near term."
"Even after the infections subside, the resultant higher channel inventory is expected to keep it a buyers' market, allowing sellers limited flexibility to pass on the cost increases to the buyers. This is expected to cap the improvement in profitability during the financial year 2022, despite the year-on-year increase in turnover," Icra vice president and co-head, Corporate Sector Ratings, Nidhi Marwaha said.
Icra projects the Indian apparel companies to report double-digit growth in the financial year 2022 albeit on a low base, achieving 85-95 per cent of the pre-COVID turnover levels.
Besides pent-up and festive demand, which temporarily supported demand during the third quarter of the financial year 2021, increased mobility amidst the easing of the lockdowns increased consumer confidence in the H2 financial year 2021, the report said adding that this encouraged higher footfalls in marketplaces and drove discretionary consumer spending.
The partial recovery in sales and profitability is expected to result in some improvement in coverage metrics of apparel players during the financial year 2022, supported by limited Capex spends, even though working capital borrowings to support the elongated cycle will keep debt levels high, it added.
Source: The Economic Times
The Supreme Court on Tuesday came hard on GST (Goods & Services Tax) Department by terming provisional attachment under law as ‘draconian’.
“The power to order a provisional attachment of the property of the taxable person including a bank account is draconian in nature and the conditions which are prescribed by the statute for a valid exercise of the power must be strictly fulfilled,” a division bench of justices Dhananjaya Y Chandrachud and MR Shah said in its ruling while setting aside the orders of provisional attachment dated October 28, 2020 in the matter of Radhe Krishan Industries.
The background
The company moved the apex court against the ruling of a Division Bench of the High Court of Himachal Pradesh on January 1, 2021. The High Court dismissed the writ petition instituted under Article 226 of the Constitution challenging orders of provisional attachment on the ground that an alternate remedy is available. While dismissing the writ petition on grounds of maintainability the High Court was of the view that the appellant had an ‘alternative and efficacious remedy’ of an appeal under State GST law.
While dismissing the writ petition, the High Court held that it was undisputed that the third respondent and the Divisional Commissioner, who has been appointed as Commissioner (Appeals) under the GST Act, are constituted under the HPGST Act, and therefore, it is assumed that there is no illegal or irregular exercise of jurisdiction.
The High Court further observed that even if there is some defect in the procedure followed during the hearing of the case, it does not follow that the authority acted without jurisdiction, and though the order may be irregular or defective, it cannot be a nullity so long it has been passed by the competent authority.
After going through all the arguments, the Division Bench of Supreme court said it is evident from the facts noted above that the order of provisional attachment was passed before the proceedings against the appellant were initiated under Section 74 of the HPGST Act.
Section 83 of the Act requires that there must be pendency of proceedings under the relevant provisions mentioned above against the taxable person whose property is sought to be attached. “We are unable to accept the contention of the respondent that merely because proceedings were pending/concluded against another taxable entity, that is GM Powertech, the powers of Sections 83 could also be attracted against the appellant,” it said while disposing the petition
Expert view
According to Aditya Singhania, Partner at Singhania's GST Consultancy, time and again various High Courts have directed for careful handling of the power to attach properties on provisional basis. In fact, the CBIC has recently issued guidelines for provisional attachment of property taken into account the directions of the Courts. One of the significant clarifications which comes out from the verdict of the Apex Court on Tuesday is that the provisional attachment must come to an end when the final order has been passed under section 74(9) as because the proceedings under section 74 are no longer pending.
“This will also bring the stay on the recovery of the balance amount if an appeal is filed on 10 per cent pre-deposit, as against the provisional attachment of 100 per cent of the alleged amount,” he said.
Source: The Hindu Business Line
The country's exports are reviving and the shipments are expected to be in the "solid" positive territory in this financial year, Commerce Secretary Anup Wadhawan said on Tuesday. He said that exports recorded a significant contraction in April last year but gradually things started improving and the shipments have entered the positive territory.
"So, I am quite positive and hopeful that in 2021-22, we will be in solid positive territory. I have no doubts about that. But I do not want to predict numbers and make any targeted projections," the secretary told reporters.
Since December 2020, the country's merchandise exports are recording positive growth. In March this year, the exports rose by 60.29 per cent to USD 34.45 billion. However in 2020-21, the shipments dipped by 7.26 per cent to USD 290.63 billion.
Product categories that recorded positive growth during March include oilmeals, iron ore, carpet, gems and jewellery, engineering goods, rice, spices, pharmaceuticals, chemicals, marine products, petroleum products, coffee , and tea.
Gems and jewellery is a luxury product, and its demand would also slowly pick up, Wadhawan said, adding that exports are recovering from the severe COVID-19 impact.
He added that exporters have shown resilience and have covered a lot of the lost ground, after hit by Covid-19 pandemic.
When asked about India's trade gap with the US and China, the secretary said that trade surplus with the US and deficit with China has improved in 2020-21.
India's exports to the US stood at USD 53 billion in 2019-20 and USD 51 billion in 2020-21. Imports from the US aggregated at USD 35.8 billion in 2019-20 as compared to USD 28 billion in 2020-21.
The country's exports to China in 2019-20 were at USD 16.6 billion and USD 21.2 billion in 2020-21. Imports from China were worth USD 65 billion in 2019-20 while the numbers were roughly the same for 2020-21.
Source: The Economic Times
Egypt is going full throttle with the construction of a textiles factory in the city of El-Mahalla that is slated to become the world's largest. The factory, which would be inaugurated in March 2022, spans over 62,000 sq m and will have a daily production capacity of 30 tonnes, news reports said. The plans for the factory were announced in September 2019.
The country's prime minister, Mostafa Madbouli, held a meeting last week in this regard with ministers of trade and public enterprise. Madbouli, on the occasion, called for granting farmers incentives to grow high-quality cotton to the extent that it would fulfil the needs of local factories. El Mahalla El Kubra, commonly known as El Ma?alla, is the largest city in the Gharbia governorate and as well as in the Nile Delta.
Five trainers will train 130 others who in turn will train the workers as other state-owned companies are being developed in Cairo, Beheira's Kafr Al Dawar, and other areas in the Nile Delta region.
Egypt is also planning a textiles city in the Free Zones System in Minya governorate. It will be built over 306 feddans, and a company will be established to manage the city and all parties would have equal shares in it. Feddan is an Egyptian unit of area equal to 1.038 acres.
The project will provide around 17,000 direct jobs, in addition to indirect job opportunities, and target exports to overseas markets.
Source: Fibre2Fashion News
The country’s textile manufacturers on Monday expressed fears of suffering huge financial losses due to failure in maintaining export deadlines as production at more than 50 mills had remained almost suspended for a lack of gas supply.
The Bangladesh Textiles Mills Association on the day urged the government to resolve the gas supply problem at mills located in Madhabkhola, Sripur, Baniarchala, Bhabanipur and Gazipur areas immediately so that the mills are able to pay their workers before Eidul-Fitr.
The BTMA in a letter to the prime minister’s power, energy and mineral resources adviser, Towfiq-e-Elahi Chowdhury, said that if the situation continued to prevail, the mill owners would fail to deliver export orders on time and the law and order situation in the areas might deteriorate if the workers are not paid their wages.
The letter said that spinning, weaving and fabric-processing mills in the areas had suspended their productions by 75 per cent for the last few weeks as the pressure of gas there had declined to 3 to 5 PSI from 15 PSI.
The letter signed by BTMA president Mohammad Ali Khokon also said that the trade body on April 7 sent a letter to the managing director of Titas Gas Transmission and Distribution Company Ltd requesting it to resolve the gas crisis but the situation was yet to improve and had rather deteriorated.
Khokon said that textiles mills usually ran on gas-based captive power and captive power generation had almost come to a halt at some units for shortage of gas.
BTMA senior vice-president Fazlul Haque said that at least 50 to 60 mills in the areas had been suffering from acute shortage of gas for the last two months.
This has led to an uncertainty regarding payment to the workers before Eid as mill owners are facing a liquidity crisis with their units running at 30 to 25 per cent capacity, he said.
Source: Newage Business
The fallouts of the pandemic COVID-19 have an unprecedented impact on the global economy and very badly impacted the price level of apparel items to the US markets, the world’s largest garment importing nation. The apparel exporting countries to the USA like Bangladesh, China, Egypt and Pakistan have been facing a stiff price war to the American markets in the time of the pandemic.
The supplying countries have been witnessing a drastic price fall in the US markets and also a drop in the import of goods due to slower demand by the consumers.
For instance, the price of imported apparel in the US declined to $2.60 per Square Metre Equivalent (SME) in February this year against $2.95 per SME in February 2020, according to data from the US Department of Commerce.
The USA imported $5.39 billion worth of garments in February this year as against $5.91 billion in the same month of 2020.
Last year, during the pandemic time, prices of Bangladeshi-made t-shirts declined in the US markets although the prices of the same t-shirt made in Vietnam were almost double those of Bangladesh to the American markets.
In the US market, the price of a dozen Bangladeshi T-shirts made from cotton fell by 20 percent to $17.99 in 2020 from $22.43 in 2019 while the price of the same product made in Vietnam declined by 17 percent to $31.9 in 2020 from $38.2 in 2019.
The US is the single largest export destination for Bangladesh and of the total export to the American markets in a year nearly 90 percent includes apparel items. In fiscal 2019-20, Bangladesh exported goods worth $6.04 billion to the US markets, $6.5 billion in fiscal 2018-19 and $5.98 billion in fiscal 2017-18, according to data from the Export Promotion Bureau (EPB).
So, given the effect of lockdowns in Europe and the USA and their impact on retail and demand, the worst ever Christmas sales the world has seen, and most of all the effect of price decline, which is around 5 percent since September 2020, it was a dark year for the industry, said Rubana Huq, immediate past President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
As the uncertainties and stresses caused by the second wave persist coupled with the relatively poor administration and unavailability of a vaccine, and the impact on the global economy it would leave, this downtrend in export will probably continue till April of this year, Huq also said.
International retailers and brands are asking for deferment of payments. The vaccination hasn’t had pace in the west. Therefore, we need west to start up, without which we won’t pick up business.
As much as we understand that brands are delayed with payments, the reality of insolvency at our end persists. Regularly ask for discounts, deferment of payment are critical issues for the sector to deal with, Huq said.
Not all the retailers and brands have cleared the full due payments yet and it is a constant negotiation process.
Buyers are following now a “go slow” approach and placing their orders in small slots instead of bulk amount.
Since the western market is yet under strict lockdown, their retail sales have plummeted, the request for payment deferment is always there. We have been negotiating with each of the buyers as best as we can.
Some 90 percent of the previous orders have been reinstated and we are trying for the rest. However, it is complicated since a good number of the dues are caused by bankrupted buyers and we don’t have any legal protection against such non-payment.
Since the first wave of COVID-19 has hit our country in March last year, particularly the exports started getting affected since March 2020, a year-over-year comparison of monthly exports between 2020 and 2021 would be misleading; thus the growth in export for the months of 2021 has to be calculated with the corresponding months of 2019.
After the third quarter of the fiscal year 2020-21, the export earnings from RMG stood at $23.49 billion which was $25.95 billion during the same period of FY2018-19, indicating a 9.49 percent decline equivalent to a short of $2.46 billion.
Knitwear export struggled to retain 0.35 percent growth in March 2021 over March 2019; the average growth of knitwear export for July-March 2020-21 than July-March 2018-19 is -1.15 percent.
Woven garments is facing the toughest time ever, while export has suffered double-digit decline since August 2020, and in March 2021 compared to March 2019 woven export fell by 27.70 percent. The nine-month average growth between 2021 and 2019 stands at -17.62 percent.
The price trend continues to worsen as March 2021 posts a 5.11 percent decline in unit price compared to March 2019.
The average decline in unit price for July-March 2020-21 compared to July-March 2018-19 is -3.58%. Such consecutive declines in unit price do not require further analysis to understand the magnitude of vulnerability the industry is dwelling with. The export markets are still struggling to contain the spread of the virus, the third wave has only added to the woes.
Until recently Bangladesh was faring well in containing the infection; however, the present lockdown, which is a timely move by the government, would further impact the already depressed performance of the industry.
“We are having negotiation with the US retailers and brands so that they pay more prices for our products. We have already held meetings with them to convey our message for increasing the prices of the goods,” said Faruque Hassan, President of the BGMEA.
However, it is a matter of good news that the export to the US is getting better now as the American retailers and brands have been reopening their stores in larger numbers from the lockdown, Hassan also said.
“The next two months are very crucial for us. We have to continue our business as there is a big demand from our buyers with the reopening of their stores,” Hassan said adding that the export trend is good now to the US markets. Nearly 50 percent people of in the USA have been vaccinated so far. “So, the US retailers and brands are confident that the business with a rebound soon,” Hassan also said.
Source: Textile Today
China is set to release its own version of the Better Cotton Initiative standards soon, as it ramps up efforts to build its own brand of cotton to promote a comprehensive set of principles and criteria for offering high-quality products.
Through Zhongnong Guoji, a cotton service provider based in Beijing, the planned cotton program is set to build China's own industrial standards in a bid to foster high-quality development and promote digitalization of the whole cotton industry, according to Luo Yan, secretary-general of the Zhongnong Guoji-backed Xinjiang Digital Cotton Research Center.
"After years of living with pressure under BCI standards, we just want to build our own cotton brand to have a far greater say in the cotton and textile industry," said Luo, who also is participating in early preparation of the cotton project and recruiting of members in Xinjiang.
Experts said the BCI's current technical requirements, such as banning the use of certain pesticides that were prohibited in the Xinjiang Uygur autonomous region more than 30 years ago, are pretty low, and they mainly concern controlling cotton resources instead of certifying quality cotton.
They said it is time for China to set up its own standards rather than live with the current BCI standards.
According to Luo, the cotton program will mainly focus on improving production efficiency through digitalization, a fully traceable cotton production process, low-carbon production and high-quality cotton farming.
Zhongnong Guoji said it had gotten a start on the cotton program two years ago. This year, with the participation of China Fashion Association and the Ministry of Finance-backed Modern Seed Industry Development Fund, the company has completed the basic preliminary work and the three entities are working on a promotion agreement, standards formulation and the establishment of a digital research and development system.
"The first version of the future cotton standards will be released soon, and we will continue to work with the China Fashion Association and Modern Seed Development Fund to attract more cotton farmers and retail brands. We welcome all enterprises in the textile and apparel industry to join the program," Luo added. "Also, we're open to the possibility of establishing a company to promote the future cotton program and handle daily affairs."
According to Luo, the program is poised to better serve the domestic market first, and it is hoped it will go global, empowering more market participants for the long run.
Founded in 2009, the Better Cotton Initiative is a Switzerland-based organization that sets the global standard for cotton industries and certifies cotton farms worldwide, representing around 22 percent of global cotton production in 2019.
Last year, the BCI announced that it would suspend cooperation with licensed farmers in Xinjiang during the 2020-21 cotton season over allegations of "forced labor".However, that statement has now been removed from the organization's website after the Chinese public's backlash over the boycott of Xinjiang cotton.
China is the world's second-largest cotton producer, and Xinjiang is the largest cotton-producing area in the country, according to China Grain Reserves Group.
Yang Shu, an associate professor at China Agricultural University, said building China's own cotton certification and standard system is key to strengthening China's cotton textile industrial chain, allowing the country to have a far greater say in the cotton textile industry and occupy a larger market share in the industrial chain.
"Factors such as labor rights, equality and environmental protection are playing an increasingly critical role in the international trade discourse system. Against that backdrop, we need to have a better understanding of the international business rules system, while protecting our rights through commercial and legal means," Yang noted.
Source: The Ecns News
All non-essential retail stores, including apparels and fashion saw a good response in sales in England and Wales. Fashion sales, during the week that ended 16 April 2021, reportedly, witnessed a jump of 82.55 percent.
The total like-for-like sales across fashion, lifestyle and homeware rose by a whopping 674.62 percent compared to the same period of last year.
According to BDO’s High Street Sales Tracker, total like-for-like sales across the three categories BDO monitors – fashion, lifestyle and homeware – jumped 674.62%, compared to the same period in 2020.
In-store like-for-like sales rocketed 1,717.98% year on year, while non-store like-for-like sales rose by 49.59%, compared to the same week in 2020.
The numbers are huge and one could see long queues outside the stores of many fashion retailers like John Lewis and Primark last week.
The overall footfall numbers have been no less than extraordinary at 135.1 percent.
Footfall at retail parks soared by 166.3% compared to the equivalent week in 2020. High street footfall increased by 121.2%, and in shopping centres, footfall rose 133.8% on the last year.
Source: Textile Today
A 14-day lockdown imposed to curb the spread of COVID-19 pandemic has halted garment production in several factories across Cambodia, especially in the capital city of Phnom Penh and its neighbouring Ta Khmau city. The lockdown imposed on April 15 will run till April 28 and the order requires all non-essential businesses to be shut down.
"The apparel, footwear and travel goods manufacturing sector is not considered essential sector that needs to stay open during the lockdown and thus we have to remain closed," the Garment Manufacturers Association in Cambodia (GMAC) said in a statement.
The lockdown has affected some factories working outside the lockdown areas, as their workers residing in Phnom Penh and Ta Khmau could not report to work, GMAC said. It added that the lockdown has also resulted in disruptions in the movement of raw materials and finished goods.
Since factories are unable to operate normally, GMAC members may not be able to honour their delivery schedules. The GMAC has appealed to all stakeholders not to punish its member-companies if they do not meet the previously agreed delivery schedules.
"We would like to appeal for your understanding to facilitate and make arrangements to help accommodate this special situation," GMAC said. "We urge all of you not to punish our members for this situation that is beyond our control."
There are approximately 1,000 factories in Cambodia producing garments, footwear and travel goods, together employing around 750,000 workers.
Source: Fibre2Fashion News
Connecting countries creates new opportunities for development. Connectivity of a country, or of a port or airport, is usually defined as how central this location is on those networks. The economic growth of a country can be accelerated by strengthening connectivity through increasing intra-regional trade and infrastructure development.
A country can improve internal connectivity through road, canal, and railway networks, and external connectivity through expansion of existing ports and airports as well as the construction of new facilities. A country’s ability to connect to international transport networks and ensure that goods are transferred efficiently from international gateways to the rest of the country, is a crucial determinant of competitiveness.
As an island economy positioned in the Indian Ocean region, Sri Lanka’s connectivity has been mainly through its main sea ports. As Sri Lanka is at the centre of international shipping lanes connecting East and West, Sri Lanka’s location enables the country to provide quick and efficient global and regional connectivity to move cargo to and from Asia to the rest of the world. This is largely because Sri Lanka is at the centre of all major sea routes connecting Asia to the rest of the world. Further, its proximity to all major ports in the Indian sub-continent, especially those of India and Bangladesh, makes Sri Lanka a prime location that is able to provide fast and easy connectivity to the Indian sub-continent through its feeder network.
The Belt and Road Initiative (BRI) is a global initiative that pursues mutual benefit through cross-border cooperation, economic connectivity and integration. The BRI is a large project aiming to enhance the connectivity of the Belt and Road countries through better transport connectivity. In the era of China’s Belt and Road initiative, many south Asian countries also managed to complete some of their infrastructure developments which was dragging for generations. China is also investing billions of dollars in ports and port-related infrastructure projects along the 21st Century Maritime Silk Road coastline to improve ports, maritime logistics and trade transport, including Sri Lanka and Bangladesh as part of its Belt and Road Initiative.
Bangladesh and Sri Lanka share similar developmental aspirations
Bangladesh and Sri Lanka are two developing countries in South Asia and have commonalities in values and culture, and share similar developmental aspirations. Both countries are members of the South Asian Association for Regional Cooperation (SAARC), the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the Indian Ocean Rim Association (IORA), which has allowed both countries to foster engagement. Sri Lanka and Bangladesh have an extremely cordial relationship. Sri Lankan Prime Minister Mahinda Rajapaksa’s recent visit to Bangladesh, upon an invitation extended by Prime Minister of the People’s Republic of Bangladesh Sheikh Hasina showcases the special bond that two countries share.
During the visit, Sri Lanka and Bangladesh signed six Memorandums of Understanding (MoU) for strengthening youth development, agricultural research, exchange of professional knowledge, training of health nursing staff, international collaboration study and an interchange cultural program for 2021-2025. Furthermore, Sri Lanka and Bangladesh, have decided to advance the process of signing Preferential Trade Agreement (PTA) allowing duty free access to a range of goods between two countries to boost trade further. This interim arrangement will be signed as it requires much time to complete a study for inking a Free Trade Agreement (FTA).
With a GDP of over $ 305 billion, Bangladesh currently has the world’s 41st largest economy in 2019 and forecasts suggest that the size of the economy could double by 2030. However, Sri Lanka’s exports to Bangladesh just grew from $ 10 million in 2000 to $ 133 million in 2018, similarly Bangladesh’s exports to Sri Lanka grew from $ 4 million in 2000 to $ 37 million in 2019. Therefore, Sri Lankan firms can explore opportunities in Bangladesh’s growing market for long-term growth prospects, which has also been called as next China, due to the low cost and high return in manufacturing.
In recent years, Bangladesh has emerged as a leading manufacturer of textile products and become a frontrunner in South Asia. The readymade garments industry in Bangladesh is the largest manufacturing sector and the most important GDP contributor in the country. Focusing on Bangladeshi and Sri Lankan manufacturers’ own comparative advantages, both countries’ manufacturers have potential to further collaborate in the garment production process.
For example, benefiting from lower wage costs, Bangladeshi manufacturers can produce basic garments, and send them to Sri Lanka for value-addition and before shipping the final product to western markets under the ‘Made in Bangladesh’ tag. Bangladesh also benefited from Sri Lankan expertise to develop technical and managerial skills as well. In Sri Lanka, large, export-oriented firms have high productive level and sophisticated production process, as well as a more, high skilled labour force than in most other Asian countries.
Moreover, an MoU was signed in January 2020 between Sri Lanka’s Joint Apparel Association Forum (JAAF) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to promote bilateral businesses and enhance cooperation in the field of production, trade, commerce and research related to the textile and garment industry and this will benefit both countries.
Sri Lankan firms to venture into Bangladesh’s growth sectors
Addressing an investor forum organised by NDB Investment Bank, titled ‘Ayubowan Bangladesh’ in August 2018, Bangladesh Investment Development Authority (BIDA) Executive Chairman invited Sri Lankan firms to venture into Bangladesh’s growth sectors by taking advantage of its liberalised investor regime, combined with low production costs and attractive incentive schemes. A few Sri Lankan firms including NDB Capital Holdings, LAUGFS Gas PLC, Commercial Bank, Brandix, Hirdaramani Group, Kelani Cables, LTL, Ceylon Biscuits Ltd., HNB, Hemas and Macksons Paints have already invested in various sectors in Bangladesh, such as consumer retail, financial services, energy, apparel, etc.
LAUGFS Gas Bangladesh is one of the largest LPG Players who is doing LPG importing, storing, bottling, marketing, distributing and sales across Bangladesh. LAUGFS Gas Bangladesh is part of LAUGFS Gas PLC, a fast-expanding energy conglomerate in the region and a part of the diversified multinational LAUGFS Holdings Ltd. LAUGFS Terminals Ltd. owns and operates the largest LPG Transshipment Terminal in South Asia with a 30,000 MT storage facility located at Hambantota International Port.
Furthermore, currently about 37% of the goods sent from Bangladesh to the western world is transported through Sri Lanka ports. Using Sri Lanka’s ports for the transshipment of goods towards Europe and America will help to cut lead time by nearly 10 days. Even though Bangladesh relies on major container transhipment ports in Singapore, Sri Lanka, and Malaysia for its international containerised trade, Sri Lanka’s already existing strong maritime links to Bangladesh can additionally be leveraged to extend shipping services to Bangladesh. Sri Lanka has great potential to attract more by maintaining a mutually beneficial relationship with Bangladesh by enhancing connectivity and economic integration. Moreover, Sri Lanka is in an advantageous position because of its sea ports, which are closer to European markets than Bangladesh’s Chittagong port, therefore Bangladesh can use the Sri Lankan ports to its benefit. However, to attract the Bangladeshi garment industry, Sri Lankan ports must increase the efficiency of its services.
A Memorandum of Understanding was signed between Bangladesh Shipping Corporation (BSC) and Ceylon Shipping Corporation (CSC), focusing on increasing the frequency of feeder services among the seaports of the two countries and providing priority berthing and tariff concession at the Chittagong and Colombo seaports. There have been efforts to further enhance maritime links through a Coastal Shipping Agreement between Bangladesh and Sri Lanka, which is currently pending. This agreement will benefit both countries and provide preferential facilities on berthing and competitive tariff for port services for the Bangladeshi shipping sector. With the shipping connectivity, bilateral relations between the two South Asian nations would also be strengthened.
Sri Lanka can reap the benefits
South Asian ports in the Bay of Bengal ports collectively face a common problem as they are largely bound to the hub-and-spoke feeder system of direct calls and feeder services that significantly raises transport costs. In addition to that, most of those ports have low levels of productivity and connectivity. Therefore, Sri Lanka can reap the benefits of being at the nexus of the South Asia countries in Bay of Bengal to further develop as a transshipment port and benefit from Bangladesh remarkable economic progress.
The development of the ports sector is Sri Lanka’s priority area and an integral part of the development strategy, particularly in relation to developing a regional logistics hub port in the country. The ports sector has seen significant investments and improved performance during recent years and under the BRI China also invested massively in Colombo and Hambantota ports.
The presence of Japan and India in the Colombo Port West Container Terminal (WCT) with China’s CICT will improve its business outlook and value through transshipment activities. Increasing multi-country consolidations is a big part of transforming Sri Lanka into a global maritime logistics centre in the Indian Ocean.
Therefore, if Sri Lanka opted to make the maritime industry a big contributor to its economy, then it must continue to innovate and invest in this sector to achieve long-term success while building a network of physical connectivity linking Sri Lanka to many ports as possible to keep the competitive advantage in connectivity. Port of Colombo is also the top best connectivity port in South Asia and maintaining better connectivity with Bangladesh will further improve Sri Lanka’s position in regional and global markets.
Source: The Daily News
The Australian Human Rights Commission has released new human rights guidance, in partnership with the Vietnam Chamber of Commerce and Industry (VCCI), for the apparel and footwear industry in Vietnam. It is meant to support business in understanding key human rights challenges in the apparel and footwear industry and how to appropriately respond.
Vietnam’s apparel and footwear industry is one of its most important industries, accounting for nearly 20 per cent of exports and employing 2.5 million people. The industry holds promising economic growth and development, but many challenges exist to the realisation of rights in the industry, especially in the aftermath of the COVID-19 pandemic.
The guidance was developed under the ‘Advancing Responsible Business Conduct’ Project, a collaboration between the Vietnam Chamber of Commerce and Industry and the Commission, and was supported by the Australian government’s Department of Foreign Affairs and Trade (DFAT).
“Globalisation has created opportunities but also many challenges for human rights. COVID-19 has highlighted the cracks in the global economy and the vulnerabilities faced by those in global supply chains,” commission president, Rosalind Croucher, said in a statement on April 15.
Source: Fibre2Fashion News
In line with the recent announcements to tackle resurging cases in Mumbai, Messe Frankfurt India has decided to postpone its physical trade fairs planned for May 2021 which include the Mumbai editions of: Gartex Texprocess India (May 4-6), Screen Print India (May 4-6), ISH India powered by IPA (May 20-22), Media Expo (May 20-22) and LED Expo (May 20-22).
The state government’s recent advisories aimed at breaking the spread of the second wave as well as the on-going vaccination programmes have led to the Bombay Exhibition Centre (BEC) simultaneously doubling up as a jumbo care centre as well as a vaccination centre. Inaccessibility of the venue and the new measures put in place by regional governments make it impossible to host large-scale trade shows in the coming months, the trade fair organiser said.
In the interest of all stakeholders, industry leading shows such as Gartex Texprocess India, Screen Print India, ISH India powered by IPA, Media Expo and LED Expo have been rescheduled. While the Delhi editions of Gartex Texprocess India, Screen Print India, LED Expo and Media Expo continue to be on schedule, the new dates for the Mumbai editions will be announced in coherence with government guidelines, as soon as the venue is made safely accessible.
Despite the new lockdown restrictions, the Indian economy reeling under the negative impact since the onset of the pandemic shows no signs of slowing down the business momentum which has been picking up in 2021. The vaccination progress in many countries is being closely watched and is an encouraging sign that the situation will ease soon.
“We understand that the business community wants to get back to meeting face-to-face, and whilst we have been planning positively for physical tradeshows, it has become necessary to make further changes to the fair dates. The current situation requires to take into consideration all factors that will affect planning certainty for the stakeholders. Nonetheless, ‘trade continuity’ for our exhibitors in the coming months will remain our prime objective and we are focusing efforts on the Delhi editions of the fairs as well as extending our digital offerings and business matchmaking across diverse sectors,” Raj Manek, executive director and board member, Messe Frankfurt Asia Holdings Ltd, said in a press release.
Source: Fibre2Fashion News
