The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19 JUNE, 2021

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INTERNATIONAL

Indian firms to seek investment opportunities in Vietnam after COVID-19

Many Indian companies want to come to Vietnam and explore investment opportunities after the COVID-19 situation comes under control, Dr Madan Mohan Sethi, Indian Consul General in Ho Chi Minh City, has said. Many Indian companies want to come to Vietnam and explore investment opportunities after the COVID-19 situation comes under control, Dr Madan Mohan Sethi, Indian Consul General in Ho Chi Minh City, has said. Vietnam is one of the fastest growing economies in the world and “is the country to watch out for” and “every provincial government has an open door policy and always encourages investments,” he told the first ever Invest Vietnam conclave organised by the Indian Investors Federation, the Vietnamese embassy in India and Leaps and Bounds Consulting Vietnam. The webinar, which aimed to present Vietnam as an investment destination in various sectors, attracted the participation of 110 investors from India and other parts of the globe, officials from both governments and Indian business executives in Vietnam. Vietnamese Ambassador to India Pham Sanh Chau said Vietnam is one of the most open economies in the world and “the Government’s vision is to make it a digital economy.” He spoke about the potential for cooperation between the two countries, especially in sectors such as pharmaceuticals, manufacture of automobile parts and technology. Vietnam has an eco-system for start-ups as well, and investors could also look to invest in these young companies with strong vision, and the Vietnamese embassy in New Delhi has a business-centred approach towards economic diplomacy and is keen to provide all kinds of support to the investor community, he said. Raghu, Director of TATA Coffee Vietnam, said the smooth connectivity between industrial parks and ports is making the supply chain more efficient in the country. He thanked the authorities for providing strong support to his company. Sanjay Jain, CFO & HR head of Wipro Vietnam, said getting young and skilled manpower is never an issue in Vietnam, and his company plans to expand its operations, thanks to the Government’s open and supportive policies. Ravi Vajpeyi, HCL Vietnam resident director, spoke about the rapidly growing information technology sector in Vietnam (worth 11.5 billion USD 2019) and large IT talent pool. “The strong IT talent pool is of the biggest strengths of Vietnam’s IT industry.” Speaking about the garment and textile sector, Selvaraj Gopal of TAP International said, “Vietnam is currently importing 85 per cent of its fabric needs from other countries, and so the scope for producing the same in Vietnam is high.” Vishwas Saraswat, founder and director of Leaps and Bounds Consulting, said: “Given the current COVID situation, the Vietnam government is doing an excellent job and in fact last year the country’s GDP grew by 2.91 percent despite the turmoil in the global economy due to COVID-19. “Vietnam’s open market policy with 14 plus free trade agreements will surely provide bigger markets to investors.

Source: Vietnam Plus

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Support from all sides needed to nurture economic recovery hit by second wave of Covid: RBI governor

The Reserve Bank governor Shaktikanta Das has pitched for policy support from all sides -- fiscal, monetary and sectoral -- to nurture recovery of the economy hit by the second wave of the coronavirus pandemic. The dent on economic activity due to the second wave of the pandemic during April-May necessitated continuation of monetary measures to support the process of economic recovery to make it durable, Das had said while participating in the meeting of the Monetary Policy Committee (MPC) earlier in the month. "Overall, the second wave of Covid-19 has altered the near-term outlook, and policy support from all sides – fiscal, monetary and sectoral – is required to nurture recovery and expedite return to normalcy," Das said, as per the minutes of the meeting released on Friday. Going forward, the governor said the pace of vaccination and the speed with which the second wave can be brought under control will have considerable bearing on the evolving growth as well the inflation trajectory. The Reserve Bank remains committed to undertake pro-active conventional and unconventional measures and to effectively channelling the systemic liquidity to alleviate stress of critical sectors which have borne the brunt of the second wave, he said. Das, and the other five members of the MPC -- Shashanka Bhide, Ashima Goyal, Jayanth R Varma, Mridul K Saggar and Michael Debabrata Patra -- had voted for keeping the policy repo rate unchanged at 4 per cent. RBI deputy governor Patra observed that unlike in the first wave, supply conditions have remained relatively resilient in the second wave, but aggregate demand barring net exports has been dented and needs counter-pandemic policy support. Even the turnaround in net exports is fragile and heavily dependent on the strength of the vaccination propelled revival in external demand, which may be partially offset by the terms of trade loss on account of the rise in international commodity prices, particularly crude oil, he noted. Patra further said the MPC has created the necessary conditions for supporting growth by maintaining the policy rate at its lowest level ever. "The onus is on the Reserve Bank to operationalize the MPC's guidance on an ongoing basis by ensuring congenial financial conditions across the system as well as for specific sectors, instruments and institutions," he said. RBI executive director Mridul K Saggar said the solace is that economic growth has not fallen off the cliff in Q1 as it did a year ago. It is possible that that initial GDP estimates do not provide full visibility and the impact on informal and unorganised economy may be deeper, he said. Also, if the economy does expand by 9.5 per cent this year, the output level in 2021-22 will be just 1.6 per cent higher than in the pre-pandemic year 2019-20, he added. He further said inflation is expected to stay elevated from the target but below the upper tolerance level through the year. The government has tasked the RBI to retain inflation at 4 per cent with a margin of 2 per cent on either side. External MPC member Jayanth R Varma said inflation rates have been consistently well above the mid point of the tolerance zone for an extended period and are forecast to remain elevated for some time. "Moreover, survey data and other indicators show that businesses have no difficulty in passing on cost increases to consumers, and are able to maintain (and even expand) their margins," he said. The only source of comfort is that all the evidence at the moment suggests that inflation is being driven not by domestic demand, but by supply side factors including the global surge in commodity prices, Varma added. Ashima Goyal said the slump in consumer confidence in the second wave is slightly more than that in the first wave. It had, however, recovered to July 2019 levels in January 2021, and may show a similar Vshape this time. "It is not yet clear if higher risk-aversion will dampen consumer demand more now or there will again be a desire to make up for forced abstention. But income and job loss, more indebtedness and impoverishment surely will shrink demand," she said. Goyal further said there is room for a supportive limited counter-cyclical rise in government deficits. This together with visibly better tax performance will prevent spikes in risk premium and help monetary policy keep real interest rates at levels that sustain the growth recovery. Growth rates that exceed the real interest rate bring down debt ratios over time, she said. As per the minutes, Shashanka Bhide said while the uncertainty over the short-term growth prospects has increased, there are also the positive triggers. The improved global demand conditions are expected to support the sustained improvement in export performance. "The focus on improving capital expenditure in the central government budget also provides a stimulus to domestic demand," Bhide said, adding that agriculture is expected to contribute to economic growth based on a favourable monsoon. The member said he was voting in favour of continuing with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continuing to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.

Source: Economic Times

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Dedicated facility to redress traders’ grievances planned

Ministers meet representatives of trade associations Minister for Commercial Taxes and Registration P. Moorthy and Finance Minister P. T. R. P. Thiagarajan conducted a meeting with representatives of trade associations at the Collectorate here on Friday. Mr. Moorthy said that after a gap of 11 years, his department had conducted a meeting with the representatives of trade associations. A dedicated facility would be set up to redress the grievances of traders. The government would ensure that traders and entrepreneurs did not face any problems in conducting their businesses. Mr. Thiagarajan said that ₹9,000 crore had been earmarked from the State’s fund for providing COVID-19 financial assistance of ₹4,000 in two instalments to rice ration card holders. Around ₹1,200 crore had been allocated for facilitating free ride for women and transgenders in government buses. Increasing tax rates on petrol and diesel had a severe impact on poor families. The Union government had imposed around 48% indirect and direct taxes. However, it was not distributed proportionally between the State and Union governments, he added.

Shopkeepers’ plea

Meanwhile, shopkeepers in the city said that closure of textile showrooms and other shops during the complete lockdown had severely affected them. The government must permit them to function with fixed timings so that they could revive their businesses, they said. Tamil Nadu Textile Merchants Association secretary Ashraf Tayub said that there were around 4,000 textile shops in Madurai, including small and big large shops. Madurai, being the textile hub of South Tamil Nadu, the closure of shops for the past one-and-ahalf months had severely impacted their businesses. G. Raja, Manager of Saravana Stores, said this was the peak season for textile shops as they record around 30% of their annual sales. Sales of school uniform materials and clothes for weddings formed a major portion of revenue for textile shops. But the lockdown had deprived everything,” he said. With no income, shopkeepers were struggling to pay electricity charges, rent and staff salary. If the shops were not permitted to open for long, soon many would be forced to down shutters for good, said Mr. Tayub. “Hence, the government must permit the functioning of textile shops for a limited time period with compliance to COVID-19 safety precautions,” he said.

Source: The Hindu

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Haryana announces Rs 5,000 one-time aid for labourers, shopkeepers hit by pandemic

 The Haryana government on Thursday announced a one-time payment of Rs 5,000 each to small shopkeepers, construction workers, auto-rickshaw drivers and unorganised labourers who have faced financial hardship due to the COVID-19 pandemic and lockdown. 3.41 % families who have lost a family member in the 18-50 age group to COVID-19 will be given an ex gratia of Rs 2 lakh each, Chief Minister Manohar Lal Khattar announced at a media briefing here on the occasion of his government completing 600 days in office. The chief minister also announced a host of other benefits, including waiver of property tax and reduction in electricity bill in the first quarter of 2021-22. Predict on IN vs NZ WTC match & g Altogether, these announcements entail a financial package of over Rs 1,100 crore. Giving details, Khattar said a financial aid of Rs 5,000 each will be given to 12 lakh families who are engaged in the unorganised sector such as construction workers and auto-rickshaw drivers. This package is worth Rs 600 crore. The chief minister said to ensure that the labourers of the unorganised sector have easy access to the scheme a portal has been designed and the registrations on the portal will start from June 18 The CM also announced Rs 5,000 each for ASHA workers and those engaged in the National Health Mission. It would entail an expenditure of Rs 11 crore, he said. Similarly, a package of Rs 150 crore was announced for small shopkeepers, he stated. Khattar further said that the government had announced an ex-gratia of Rs 2 lakh each for the BPL families whose. The CM said that the state government is steadfast to provide relief to consumers of electricity during the COVID-19 crisis and the electricity department has decided that surcharge will not be levied on electricity bills till June 30. Apart from this, the state government announced relief to the traders as their business activities are affected due to COVID-19 pandemic. He said the consumers whose average electricity bill for the months of April, May and June is 50 per cent less than the average electricity bill for the months of January, February and March, their fixed charge of Rs 10,000 will be completely waived. Those consumers whose fixed charge ranges from Rs 10,000 to Rs 40,000, they will get a rebate of up to Rs 10,000 and a rebate of 25 per cent will be given on electricity bills having fixed charges of more than Rs 40,000………………

Source: Economic Times

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‘Q2 manufacturing expectations drop’

RBI’s June Industrial Outlook Survey points to adverse economic conditions: Bhide in MPC’s minutes Early results from the RBI’s June Industrial Outlook Survey show that not only has the summary index of current business conditions for the manufacturing sector dropped for the current quarter, but also that the index of expectations for the second quarter of FY2022 has declined, as per observations made by Shashanka Bhide, member of the RBI’s Monetary Policy Committee, at the MPC meeting earlier this month. The RBI on Friday released the minutes of the meeting. “These perceptions of business conditions point to the adverse economic conditions compared to the sentiments at the end of Q4: FY2021,” Dr. Bhide noted. He said while the data on the impact of the second wave of the COVID-19 pandemic was limited, qualitative data from the surveys of households and enterprises suggest ‘significant dent’ in consumer and business sentiment. “The survey of Consumer Confidence conducted by RBI in the last week of April and up to May 10, in 13 major cities... reveals a sharp rise in the percentage of respondents who perceive the current general economic conditions to be worse than a year back, compared to a similar survey conducted two months back,” he added. Importantly, 51.5% of the respondents opined that economic conditions would be worse a year ahead. Observing that the economy’s recovery would hinge on the decline in the spread of the disease, he said, “acceleration in the vaccination program and availability of health care would be a key to boost the confidence of the consumers, workers and producers in the resumption of their economic lives”. Ashima Goyal, another member, cautioned against laying too much store by the latest round of the RBI’s surveys, noting that these were conducted during a “period of highest fear and uncertainty that very likely affected consumer responses” given that the number of fresh cases peaked on May 7. “Robust inferences have to await surveys taken in more normal times,” she suggested.

‘Forecasts less reliable’

Dr. Goyal also noted that the MPC had moved to data-based guidance, given that expectations and forecasts were less reliable in times of ‘such uncertainty’, a view echoed by fellow member Jayanth R. Varma. Prof. Varma said the MPC must be sensitive to the risk that inflation expectations could become entrenched if inflation remains elevated for too long. “Ever since the onset of the pandemic, nowcasts and forecasts of economic growth have not been highly reliable,” Prof. Varma added. He said Indian inflation rates have been consistently well above the mid point of the tolerance zone for an extended period and would remain elevated for some time. “Moreover, survey data and other indicators show that businesses have no difficulty in passing on cost increases to consumers, and are able to maintain (and even expand) their margins. The only source of comfort is that all the evidence at the moment suggests that inflation is being driven not by domestic demand, but by supply side factors including the global surge in commodity prices,” he said. This could change as the recovery gathers steam, and the MPC must be sensitive to the risk that inflation expectations could become entrenched if inflation remains elevated for too long, he added.

Source : The Hindu

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Lockdown-hit Ludhiana hosiery industry looks at revival with easing of restrictions

The pandemic-induced curbs over the last one-and-a-half month spelt losses for the sector as there was no demand from distributors. Reeling under losses for the second consecutive year, Ludhiana’s hosiery and textile industry comprising nearly 14,000 small and medium units is now hoping for revival with easing of Covid-19 restrictions in Punjab and other parts of the country. The pandemic-induced lockdown over the last one-and-a-half month spelt losses for the sector as there was no demand from distributors and fresh orders were hardly placed. The manufactures say there are strong chances of a recovery as shops have been allowed extended timings. “The summer cycle for the hosiery industry starts in February-end and goes on till September. Already three months have elapsed and we are facing up to 20-30% losses. We are now hopeful that the remaining three months will be good,” said Sudershan Jain, president, Knitwear and Apparel Manufacturers Association of Ludhiana. As the majority of apparel manufacturing units in Ludhiana fall in the unorganised sector that relies on cash and credit, smaller players were impacted most by the lockdowns. This, coupled with the shortage of labour in the last month as migrants in large numbers went to their native places dealt a severe blow to the industry. However, the majority of the workers have now returned to the city, said Jain. “Our main distribution market in Delhi was closed and reopened only this week on oddeven basis. With this market closed for over a month, there were no buyers from other parts of the country to whom we catered to. Nearly 90% of our stock has piled up,” said Tarun Jain Bawa, president, Bahadur Ke Textiles and Knitwear Association. Ajay Nayyar, owner of Silver Arc Mall in the city, said as timings were extended till 8pm, the number of customers thronging the garment stores will increase. “More than 80% visiting the malls now want to buy something. In pre-Covid times, this percentage was less as many indulged in window shopping. We appeal to the government to allow us to open on Sundays as well,” he said. Amit Thapar, vice chairman of the Punjab chapter of the Confederation of Indian Industry (CII), and president of Ganga Acrowools, said the sector suffered losses to the tune of 30% due to the lockdown. “But now we are on the path of recovery,” he added. Even as overall sales were down, there was a consistent demand for casual wear as most people stayed home. “We sold pajamas in large volumes during the lockdown,” said Vinod Thapar, chairman, Knitwear Club.

Source: Hindustan Times

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India maintains 43rd rank on IMD's World Competitiveness Index; Switzerland tops chart

 At eighth, Taiwan reached the top-10 for the first time since the ranking began 33 years ago (moving up from 11th last year). The UAE and the USA remain in their same spots as last year (9th and 10th, respectively). The top-performing Asian economies are, in order, Singapore (fifth), Hong Kong (seventh), Taiwan (eighth) and China (16th). India maintained 43rd rank on an annual World Competitiveness Index compiled by the Institute for Management Development (IMD) that examined the impact of COVID-19 on economies around the world this year. The 64-nation list was led by Switzerland, while Sweden has moved up to the second position (from sixth last year), Denmark has lost one place to rank third, the Netherlands has retained its fourth place and Singapore has slipped to the fifth place (from first in 2020). At eighth, Taiwan reached the top-10 for the first time since the ranking began 33 years ago (moving up from 11th last year). The UAE and the USA remain in their same spots as last year (9th and 10th, respectively). The top-performing Asian economies are, in order, Singapore (fifth), Hong Kong (seventh), Taiwan (eighth) and China (16th). The IMD World Competitiveness Ranking ranks 64 economies and assesses the extent to which a country promotes the prosperity of its people by measuring economic well-being through hard data and survey responses from executives. This year, the rankings expose the economic impact of the pandemic across the globe. Among the BRICS nations, India is ranked second after China (16), followed by Russia (45th), Brazil (57th) and South Africa (62th). India has maintained its position for the past three years but this year, it had significant improvements in government efficiency, IMD said. "India's improvements in the government efficiency factor are mostly due to relatively stable public finances (despite difficulties brought by the pandemic, in 2020 the government deficit stayed at 7 per cent) and to the positive feedbacks. to the private companies," IMD said. It, however, added that the short term performance of India's economy will depend on its ability to address the pandemic. The report finds that qualities such as investment in innovation, digitalisation, welfare benefits and leadership, resulting in social cohesion have helped countries better weather the crisis the best and thus ranked higher in competitiveness. The report said top-performing economies are characterised by varying degrees of investment in innovation, diversified economic activities, and supportive public policy, according to the experts at the World Competitiveness Center. "Strength in these areas prior to the pandemic allowed these economies to address the economic implications of the crisis more effectively," the report said. Competitive economies succeeded in transitioning to a remote work routine while also allowing remote learning. Addressing unemployment has been fundamental. Countries that ensured the effectiveness of key public spending, such as public finance, tax policy and business legislation, are seen as essential policies to relieve the pressure on the economies hit by COVID-19, the report said. The ranking, produced annually by the IMD World Competitiveness Center, measures the prosperity and competitiveness of 64 nations by examining four factors -- economic performance, government efficiency, business efficiency, and infrastructure.

Source: Economic Times

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Fashion influencer Roopal Shah extends her support to SMEs by promoting small-scale brands across India

Creating a path of her own, Roopal Shah is rightly setting an example for women of all age groups . Being a lovely wife and a proud mother, she has maintained the right balance between her personal and professional life. According to the influencer, it is essential to step out of the comfort zone and learn various aspects of varied fields. The rising number of small-scale businesses in India are lately getting equipped to social media and digitalization. With many SMEs identifying the potential social media has of connecting with the audience, it has given birth to many influencers from different categories. Fashion remains one of the most sought categories where we have seen an ample number of influencers rising at an exponential rate. One such popular name is Roopal Shah, also known as Rupal Shah. Hailing from Surat, she has played a pivotal role in promoting many small-scale companies on social media. Creating a path of her own, Roopal Shah is rightly setting an example for women of all age groups . Being a lovely wife and a proud mother, she has maintained the right balance between her personal and professional life. According to the influencer, it is essential to step out of the comfort zone and learn various aspects of varied fields. Her popularity and humbleness have undeniably done wonders on social media as the lady enjoys a mammoth fan following from all over Gujarat. By promoting various small-scale brands, Roopal Shah hopes to boost the startup ecosystem across India. While many have a notion that Mrs. Shah does paid collaboration with the small-scale brands, but that is not the case. Speaking about the same, she said, “We all start from scratch. Rather than involving commercials, I believe in building relationships with small-scale brands and startups. If every business manages to perform exceptionally well, many people from our country will become self-employed.” Mrs. Roopal grabbed everyone’s attention for her effortless style statement. The beautiful woman very well understands the latest fashion trends happening in the market. As a fashion influencer, she has been a jury member and a judge at various fashion events and dance shows. Additionally, with Surat being home to textiles, Roopal Shah has an aim to boost the growth of many textile industries of Surat and other adjoining areas on a pan India level. Besides promoting SMEs, Roopal Shah also has collaborated with several well-known brands like Nescafe, Bioderma, Lays, Parle-G, LOQI and many more. For her, earning a good reputation is of utmost importance rather than earning more money. “You can create wealth, but to create goodwill, I feel one must build good ties with almost every brand and business entity from the market”, stated Roopal. As a philanthropist, Roopal has often taken a stand for people in need. However, her donations and contributions have always remained low-key as she does not prefer to reveal about her charitable works. Well, we must say that the work Roopal Shah is doing is not for the betterment of people and their businesses, but for the overall development of the country. Keep doing the great work Mrs. Roopal Shah and keep inspiring everyone with your admirable work.

Source: Newsx

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Most big mall developers may waive rent for recent Covid-19 lockdown

DLF, the country's largest listed developer, has also taken a similar stand. Many big mall developers such as Raheja-owned Inorbit Malls, DLF, and Lake Shore are looking at giving a waiver to retail stores in the lockdown during the second wave of the pandemic. Most of the states in the country have announced a lockdown since April this year after the second wave of the pandemic became evident. “We are considering it. Retailers don’t have money. How will they pay? We have to support them,” said Rajneesh Mahajan, chief executive at Inorbit Malls, which runs malls in Mumbai and Navi Mumbai, among others. Inorbit gave a waiver to ...

Source:  Business Standard

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Niger plans to establish Special Economic Zone in Pakistan

ISLAMABAD, Pakistan: The Niger’s Minister of Industries and Commerce Gado Sabo Muctar has said that the Niger’s government plans to establish a Special Economic Zone (SEZ) for Pakistan to attract investment and manufacturing sector from Pakistan in Niger. In a meeting with the Federal Minister for Industries & Production Khusro Bakhtiar in Islamabad on Friday, the Niger’s minister said that the prime focus is to set up a joint working group for exchange of experience at both policy and operational level for setting up SEZs so that both Countries would establish long-term trade relations. Welcoming the visiting dignitary, Khusro Bakhtiar thanked the government of Niger for extending support of Pakistan on the Kashmir issue. The federal minister said that the government of Pakistan had launched the ‘Look Africa Initiative’ during the tenure of the current government which envisaged various measures to enhance trade with Africa and increase outreach to major African economies. While highlighting the Investment-friendly policies of government, the minister said that Pakistan is willing to tap the huge potential of Niger’s market through bilateral trade cooperation in field of textile, auto industry, mining and agriculture. The federal minister underlined the importance of enhancing economic outreach through formal structure accompanied by the regular high-level contacts, government-togovernment and business-to-business interactions. Khusro Bakhtiar proposed to form working group on industrial cooperation under Joint Ministerial Commission between Niger and Pakistan to embark upon joint ventures related to business and trade.

Source: DND

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Vietnam to protect production at industrial parks

 The fourth wave of COVID-19 has changed the routines of many people working in industrial parks (IPs) in northern Vietnam. s IPs play an important part in the country’s exports and local economic development, the re-emergence of the COVID-19 pandemic could cause disruptions to production and business activities, causing tens of thousands of workers to work alternate shifts or take temporary leave, said experts. To deal with the situation, Bac Ninh Province, which is home to 1,120 companies including big names such as Samsung, Canon, Foxconn and Microsoft, as well as about 450,000 workers in 10 industrial parks and 26 industrial clusters, started the first ever production-residence-combined model in the country to deal with the ongoing outbreaks in the IPs. Vu Ninh, who worked as a manager at Samsung’s vendor at the Yen Phong IP told Việt Nam News: “I was vaccinated against COVID-19 on June 2 and feel thankful and safe for that.” Ninh said: “Now, everything is served at the factory. Instead of going back and forth between Hanoi and Bac Ninh every day like usual, we are working, eating and staying at the factory all the time.” Other IPs in Bac Ninh Province are following similar models. Nguyen Thi Khai, a worker at Bujeon Vietnam Electronics Company in Que Vo IP, said: "I feel peace of mind while I keep my job and income and am protected.” Nguyen Thi Thu, a worker at Yen Phong IP, said: “We get VND100,000 per day and extra each month to call home.” Co-operate to protect the IPs While Bac Ninh Province People's Committee set up teams to inspect, supervise and guide enterprises to implement the work-stay model, local enterprises were also working hard to make sure their staff stay safe. Bujeon Vietnam Electronics rearranged an equipment line, temporarily suspending an expansion project to take advantage of the space for accommodation. Song Yu Hoon, director of the company’s Administration and Human Resources Department, said: “We always ensure the best conditions for workers' accommodation as they need to be safe to maintain stable production.” Choi Joo Ho, general director of Samsung Vietnam, said: “In a short time, equipment has been installed for workers to stay at the factories and at 51 schools in Yen Phong district.” To ensure peace of mind for tens of thousands of employees, the company provides free accommodation, as well as three meals and a snack a day. Bui Hoang Mai, Head of the Provincial IP Management Board, told local media: “The policy of the province has received the consent of enterprises as it is the most practical solution to fulfil the "dual goal" of both economic development and fighting the COVID19 pandemic.” Other IPs to be protected There are 3.8 million people working in 369 industrial zones and border areas nationwide, while some 600,000 people work at industrial clusters. Hanoi, HCM City and Bac Giang Province also suffered from the fourth wave of COVID19. In the top ten exporting localities, valued at US$213 billion, the top four accounted for 51.2 per cent of the volume. HCM City and Hanoi accounted for 40 per cent of the country's GDP. In the fourth wave of the virus since April 29 to June 16 afternoon, Bac Giang reported 4,590 cases, Bac Ninh followed with 1,432, while HCM City and Hanoi reported 1,015 and 464 cases, respectively. With more positive cases reported, HCM City’s factories implemented measures to deal with the pandemic and ensure production. Head of Viet Thang Jean Co. with thousands of workers and vice president of the HCM City Textile, Embroidery and Knitting Association, Pham Van Viet, said: “The textile and garment industry is labour-intensive and works on a chain, so if a worker is isolated for 14-21 days, the enterprise's production plan and the production chain are interrupted.” Viet said: "We are very worried because if we cancel orders, we have to compensate customers, while thousands of workers have to quit or lose their jobs.” As in Bac Ninh, the city’s businesses have prepared plans for on-site production and accommodation. On June 11, the management board of the city’s Hi-Tech Park organised an online scenario when workers stay and work in the factories. Economist Ngo Tri Long said that the fourth wave poses other problems. The first priority was to fight the pandemic, but at the same time keep production chains intact. “In the planning and development strategy of IPs, it is necessary to prepare and respond to the pandemic and limit the spread of the disease. The construction of concentrated accommodation and catering for workers in a closed chain in industrial parks and factories will be a long-term solution. Thus, it is easy for us to stamp out the pandemic, not to spread it in the community.” Long said it was necessary to urgently trace, localise and stamp out new infection clusters, especially outbreaks that have spread to industrial parks and export processing zones, adding that foreign experts working in the IPs need to undergo mandatory isolation. Economist Nguyen Tri Hieu told Việt Nam News: “The local economy has spent the first five months relatively optimistic. Exports grew over the same period last year, foreign trade maintained growth, jobs were restored, and GDP continued to grow. However, from now until the end of the year the situation will be very unpredictable.” He added: “We still have strength in exports. Many markets around the world are being strongly affected by the pandemic, but there is a lot of demand for goods, especially agricultural products. However, the pandemic must be controlled and the production must be maintained.”

Source: Vietnam Net

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Smart clothing will monitor your health

Washable, breathable and stretchable cloths developed at Purdue University are paving the way for battery-free clothes powered by Wi-Fi. First there were smart devices, now comes cloths that will make clothes smart. Engineers from Purdue University have developed a method to transform pieces of cloth into battery-free wearables that won't break down in the laundry. The commercial development of smart garments is currently hindered by significant challenges, such as dependence on batteries, reduced washability and difficult incorporation into existing large-scale textile manufacturing technologies. The cloths the Purdue engineers have developed are powered wirelessly through a flexible, silk-based coil sewn on the textile, the university said. This will pave the way for clothes to become smart. With miniaturized electronic circuits and sensors, these smart cloths will outperform conventional passive garments and will allow a wearer to seamlessly communicate with their phone, computer, car and other machines, according to the university. "This smart clothing will not only make you more productive but also check on your health status and even call for help if you suffer an accident," the university said. One issue that has hindered the widespread deployment of smart clothing is that the fabrication of smart clothing "is quite challenging, as clothes need to be periodically washed--and electronics despise water," according to Purdue. However, "by spray-coating smart clothes with highly hydrophobic molecules, we are able to render them repellent to water, oil and mud," said Ramses Martinez, an assistant engineering professor at Purdue, in a statement. "These smart clothes are almost impossible to stain and can be used underwater and washed in conventional washing machines without damaging the electronic components sewn on their surface." The rigidity of typical waterproof garments and their reduced breathability make them uncomfortable to wear after a few hours, he said. "Thanks to their ultrathin coating, our smart clothes remain as flexible, stretchable and breathable as conventional cotton T-shirts," Martinez said. Unlike common wearables, the Purdue smart clothes do not require batteries for powering. By simply harvesting energy from Wi-Fi or radio waves in the environment, the clothes are capable of powering the circuitry sewn on the textile, he said. For example, a battery-free glove that illuminates its fingertips every time the user is near a live cable warns about the possibility of an electric shock. Another example is a miniaturized cardiac monitoring system sewn on a washable sweatband capable of monitoring the health status of the wearer, according to Martinez. "Such wearable devices, powered by ubiquitous Wi-Fi signals, will make us not only think of clothing as just a garment that keeps us warm but also as wearable tools designed to help us in our daily life, monitor our health and protect us from accidents," Martinez said. Eventually, he said he envisions smart clothes being able to transmit information about the wearer's posture and motion to mobile apps, allowing machines to understand human intent without the need for other interfaces. This will expand "the way we communicate, interact with devices, and play video games." How it works The engineers are using conventional fabrics and wirelessly powering them with omniphobic silk-based coils. OSCs are stretchable and lightweight power-receiving coils that can be easily sewn onto any textile, enabling the safe wireless powering of wearable electronics via magnetic resonance coupling, without compromising the comfort of the user, according to Purdue. OSCs are composed of microfibers made of a novel silk-nanocarbon composite that benefits from the stretchability of silk fibroin and the high conductivity of multiwall carbon nanotubes and chitin carbon nanoflakes, the university said. "OSC-powered e-textiles can be fabricated at a low cost using scalable manufacturing processes, paving the way toward the rapid development and commercialization of machine-washable and battery-free smart clothing and reusable wearable electrophysiological devices," Purdue said.

Source: Tech Republic

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China’s worse-than-Suez ship delays set to widen trade chaos

 The global shipping industry, already exhausted by pandemic shocks that are adding to inflation pressures and delivery delays, faces the biggest test of its stamina yet. When one of China’s busiest ports announced it wouldn’t accept new export containers in late-May because of a Covid-19 outbreak, it was supposed to be up and running again in a few days. But as the partial shutdown drags on, it’s further snarling trade routes and lifting record freight prices even higher. Yantian Port now says it will be back to normal by the end of June, but just as it took several weeks for ship schedules and supply chains to recover from the vessel blocking the Suez Canal in March, it may take months for the cargo backlog in southern China to clear while the fallout ripples to ports worldwide. “The trend is worrying, and unceasing congestion is becoming a global problem,” A.P. Moller-Maersk A/S, the world’s No. 1 container carrier, said in a statement Thursday. The situation in South China is another “in a string of disasters we’ve seen plague the global supply chain,” according to Nerijus Poskus, vice president of ocean strategy and carrier development for Flexport Inc., which makes software that helps companies manage their supply chains. He estimated the congestion in Yantian will take six to eight weeks to clear. That timetable is a problem because it extends the disruptions into the late-summer period of peak demand from the U.S. and Europe, where retailers and other importers restock warehouses ahead of the year-end holiday shopping rush. Usually cheap and invisible to companies and consumers, ocean freight that’s now more expensive than ever has become a double-edged threat to the world economy: by acting as both a drag on commerce and a potential accelerant for inflation. In the U.S. on Wednesday, Federal Reserve policy makers raised their inflation forecasts partly because bottlenecks have formed as supply fails to keep pace with demand. Drewry Shipping data released Thursday showed no let-up as container rates on several routes kept climbing, including an increase to $11,196 for a 40-foot box to Rotterdam from Shanghai. That’s a nearly seven-fold increase from a year ago. Ships Diverted While the situation at the Chinese port is improving, on Wednesday there was still an average waiting time of 16 days, according to a separate statement from Copenhagen-based Maersk, which is diverting most of its ships elsewhere in June. But the rerouting by Maersk and other companies will likely only add to the congestion and delays at nearby ports, the statement said. Some retailers in the U.S. have started informing customers looking to buy new furniture made in China that delivery could take as long as 10 months even if they place an order now, according to Steve Kranig, director of logistics at IM-EX Global Inc. The port congestion in Guangzhou and Shenzhen has also affected assemblers in Southeast Asia, who import raw materials to make armchairs and tables for export to the U.S., he said. “I would expect more delays to come because soon they will compete with cargo that is for the upcoming Christmas season. Since inventories are so low, I expect big retailers to try and ramp up so they can have products to sell in time for the holidays,” Kranig said. Maxed-out Capacity Even without the Suez blockage or port backlogs, the global transportation system would probably still be struggling with maxed-out capacity. Exports from China and other Asian nations are at record highs, as U.S. and European economies reopen and other markets such as India buy medical goods to help with their ongoing outbreaks. China’s trade boom shows no sign of letting up, with exports the thirdlargest on record in May and the third and fourth quarters usually the biggest periods for trade in any given year. “There are still a number of problem spots that will pose challenges to globaltrade and logistics activities in the second half of 2021,” according to Nick Marro, lead analyst for global trade at the Economist Intelligence Unit in Hong Kong. “The biggest risk will be recurring Covid-19 outbreaks, which we can probably see as inevitable owing to the new variants, but this will also include mismatched supply and demand for container space and existing logistical bottlenecks in major Western ports.” Some of the goods that couldn’t leave China through Yantian were diverted to other nearby terminals, such as the one run by Guangzhou Port Co. That’s caused periodic delays there, although the congestion has eased a lot, a worker who only gave a family name of Lin said Thursday. Even so, that’s not been enough to make up for the disruptions at Yantian, which may have affected the equivalent of about 1 million 20-foot containers so far, according to Peter Sand, chief shipping analyst at Bimco. Yantian handles about 13 million a year. “Adding another disruption on top of the current state of emergency is obviously making a stretched supply chain even more fragile,” he said. Anchor Line There are currently 139 container vessels anchored off the coast of China, about 50% more than the average from midApril to early May, according to Bloomberg analysis of vessel data. Some goods have stopped shipping altogether. Chong Junxiong owns a clothing firm called Genesis Group Pte. Ltd. in Singapore, and contracts production to a manufacturer in Dongguan, near Shenzhen. Not only has his supplier been shuttered due to Covid, but he can’t get any deliveries as shipments have also halted. “There are bottlenecks in ports all over the world because of Covid outbreaks -- people are not going to work in the same numbers and aren’t working at the same speed as they did before the pandemic,” says Bjorn Hojgaard, CEO of AngloEastern Univan Group, a company that manages operations for a fleet of 700 ships globally, including everything from tankers to bulk to container ships. “It’s taking longer for shipping to recover than what was expected a few months ago, but I’m hopeful that going into the fourth quarter in 2021 and the first quarter in 2022 we will see the resumption of activity in many parts of the global economy and certainly a normalization of some of the challenges we face in shipping.” — With assistance from Brendan Murray, Kevin Varley, Niu Shuping, Christian Wienberg and Alaric Nightingale.

Source: Bloomberg

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