The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 06 JULY, 2021

 

NATIONAL

INTERNATIONAL

Govt extends deadline for submission of inputs on new draft ecommerce rules

The initial timeline to receive suggestions was July 6. The government has extended the deadline for submitting stakeholder inputs on the new draft e-commerce rules to July 21. The initial timeline to receive suggestions was July 6. The draft norms issued by the consumer affairs ministry late last month attempt to bar ecommerce entities from organising flash sale of goods or services offered on their platforms. They also proposed that the related parties and associated enterprises of ecommerce entities should not be enlisted as sellers for sale to consumers directly among a host of other amendments. Experts said that the rules, if implemented, are likely to increase the compliance requirements of e-commerce companies and have the potential to stunt the business growth of the firms as the proposed amendments attempt to curb broad discounts, restrict the expansion of private labels, strategies companies often bank on to get more users. The development comes two days after e-commerce companies met representatives of the government raising concerns over some of the proposed changes and sought extension of the timeline to submit comments. E-commerce companies recorded significant growth amid the pandemic as more consumers took to online shopping. Global majors like Amazon and Walmart that owns a controlling stake in Flikpart have lined up investments worth billions of dollars to expand their business in the country. Analysts at Goldman Sachs estimate Indian e-commerce to reach $112 billion in GMV (gross merchandise value) by FY25, growing at a 29% CAGR over FY20-25.

Source: Financial Express

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Indian exporters to explore opportunities for increased trade with South Africa

Indian Consulate to help industry strategise in high potential areas Opportunities to increase and diversify Indian exports to South Africa, an export market which has grown four times in the last one and a half decades, will be discussed in detail by senior officials from the Indian Consulate in Johannesburg this week in an online interaction with Indian businesses wanting to explore fresh possibilities in the post-Covid scenario. “Exports from India to South Africa, especially automobiles and pharmaceuticals, got a big push during the Pandemic. Similar opportunities exist for other items too. The Consul General of India to Johannesburg will interact with Indian companies this week on such opportunities at a virtual meet organised by exporters’ body FIEO,” a source told BusinessLine. This is part of the Ministry of External Affairs’ initiative started last year to facilitate and promote Indian exports through its Missions and Posts in various countries.

Exports to South Africa

Indian exports to South Africa, which was at $984 million in 2004-05, touched $4 billion in 2019-20, although it dipped marginally to $3.93 billion in 2020-21 due to the Covid19 pandemic at the beginning of the fiscal. Imports, on the other hand, increased 8.6 per cent to $7.5 billion during the fiscal. Despite the slight decline in Indian exports to South Africa in 2020-21, items such as motor vehicles posted a sharp 10.97 per cent growth to $557 million. India, in fact, was the top country of origin for vehicle imports into South Africa despite the lengthy Covid19 lockdowns and overall declines in vehicle sales in 2020, according to the recent Automotive Export Manual report of the Automotive Industry Export Council. “Automobiles and parts exports to South Africa have a great potential for growth as Indian exporters could also use the country as a hub for export to other African countries,” the official said.

Pharmaceuticals

Pharmaceuticals is another area where there are opportunities for accelerated growth in the post-Covid period. India’s exports of pharmaceutical products to South Africa grew 33 per cent to $745 million in 2020-21 and with a focus on demand is likely to rise further, the official added. Apart from pharmaceuticals and vehicles & components, exports from India to South Africa include transport equipment, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice and gems and jewellery. “The key objective of the interactive session is to understand the present economic status of South Africa in view of Covid-19, discuss the commercial opportunities available in the prevailing economic environment and evaluate the future opportunities of various sectors,” according to FIEO. With ties between India and South Africa intensifying not just economically but also strategically, as witnessed in the two countries’ recent collaboration at the WTO on intellectual property flexibilities for Covid-19 medical products, the atmosphere is conducive for more business, the source added. India’s overall goods exports in 2020-21 declined 7.26 per cent to $ 290.63 billion but in the first quarter of the current fiscal the country recorded the highest-ever exports of $95 billion, posting a 85 per cent growth over the first quarter of the previous fiscal.

Source: The Hindu Business Line

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Digital commerce: Govt sets up key panel to set protocols

The idea of an ONDC (open network for digital commerce) was mooted last year to bring some kind of standards and streamline the country’s e-commerce ecosystem. The department for promotion of industry and internal trade (DPIIT) on Monday set up a nine-member panel, including National Health Authority chief executive RS Sharma and Infosys chairman Nandan Nilekani, to suggest measures to design an open network for digital commerce (ONDC) that aims to curb monopolistic tendencies of e-commerce platforms, among others. The ONDC is expected to set standards for onboarding retailers on online market places as well as for the supply and delivery of products through online channels. The idea of an ONDC was mooted last year to bring some kind of standards and streamline the country’s e-commerce ecosystem. Currently, different e-marketplaces have different set of rules, which at times make it difficult for small traders and suppliers to adopt. The move is the latest in a series of changes announced or being planned to be rolled out by the government for the e-commerce sector. Already, the government’s draft ecommerce policy under the consumer protection Act has caused considerable unease among e-tailers for a host of changes, including the ban of “specific flash sales” by ecommerce players. Last week, commerce and industry minister Piyush Goyal said the government could issue a clarification on its foreign direct investment (FDI) policy for ecommerce “very shortly”. Various reports have suggested that the government could tighten the norms that could force players like Amazon and Flipkart to restructure their existing marketing tie-ups. Last year, the DPIIT had asked the Quality Council of India to initiate a pilot project on the ONDC. The panel also comprises Adil Zainulbhai, chairman of the Quality Council of India; Anjali Bansal, chairperson of Avaana Capital; Arvind Gupta, head of Digital India Foundation; Dilip Asbe, MD at National Payments Corporation of India; Suresh Sethi, MD at National Securities Depository Ltd; Praveen Khandelwal, secretary general, Confederation of All India Traders and Kumar Rajagopalan, chief executive at Retailers Association of India. An additional secretary at the DPIIT will be the convenor of the advisory council. Interestingly, the council doesn’t have any member from key e-tailers. “ONDC aims at promoting open networks developed on open sourced methodology, using open specifications and open network protocols independent of any specific platform. ONDC is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers,” the DPIIT said in a notification.

Source: Financial Express

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India's June services PMI at 41.2, the fastest drop in 11 months

This is expected to affect GDP growth rate during April-June quarter India’s services sector activities contracted further in June as the intensification of the Covid crisis and reintroduction of containment measures restricted demand, revealed a monthly survey on Monday. This follows close on the heels of the factory output data registering a sharp decline during the period. The seasonally adjusted India Services Business Activity Index — compiled by IHS Markit — fell from 46.4 in May to 41.2 in June, as new work intake and output contracted at the fastest rate since July 2020, which prompted companies to reduce employment again. In Purchasing Managers’ Index (PMI) parlance, the 50-point mark separates expansion from contraction. “Given the current Covid situation in India, it was expected that the services sector would take a hit. The PMI data for June showed that the quicker declines in new business, output, and employment were sharp, but softer than those recorded in the first lockdown,” said Pollyanna De Lima, economics associate director at IHS Markit. “Uncertainty about the path of the pandemic restricted business confidence among services firms, which were generally neutral in their forecasts for output in the year ahead. The overall level of sentiment slipped to a 10-month low,” she added. She, however, pointed out that with India expanding its vaccine options and the government announcing ambitious plans to immunise the entire adult population by the end of the year, “it is hoped that the pandemic can be brought under control and a sustainable economic recovery can begin”. Services have the maximum share in India’s gross domestic product (GDP), with over 57 per cent contribution. Even the global demand for Indian services deteriorated in June, with new export orders falling for the 16th consecutive month. Meanwhile, the overall level of business sentiment was down for the third month in a row in June, reaching its lowest mark since last August. Private sector companies in India noted a second successive monthly decline in business activity during June, as market conditions remained challenging due to the escalation of the pandemic. The Composite PMI Output Index, which measures the combined services and manufacturing output, fell from 48.1 in May to 43.1 in June, signalling the sharpest rate of reduction since July 2020. Meanwhile, rising prices of edible oils and protein-rich items pushed retail inflation to a six-month high of 6.3 per cent in May, breaching the comfort level of the Reserve Bank of India and thus, rendering a reduction in interest rates a difficult proposition in the near term. Last week, the agency had said the second wave of pandemic, coupled with local lockdown, pushed manufacturing activities in reverse gear as PMI for June dipped to 48.1. Manufacturing has around 17 per cent share in GDP. The numbers of these two sectors are expected to affect GDP growth rate during the April June quarter.

Source: Business Standard

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Permit wind mills aged 20-25 years to bank excess energy generated, says SIMA

The Southern India Mills’ Association (SIMA) has appealed to the Tamil Nadu Generation and Distribution Corporation (Tangedco) to continue to permit wind energy generators to deposit (bank) the excess wind energy generated by windmills aged 20 years or 25 years. In a memorandum to the Tangedco Chairman and Managing Director, the association said that wind mills, especially those installed by wind energy generators for captive power consumption, that are aged 20 to 25 years, were told in May that they would not be allowed to bank the excess energy generated. After the introduction of digital system and recording of the generation and consumption through the Tangedco portal, every consumer having wind energy can deposit the excess generation, after adjusting the current consumption with the generation. When some of the association members tried to enter the data, the excess generation data was shown as lapsed in May, this year. Since 2012, the Tangedco has been emphasising on withdrawal of the banking facility for wind energy generators. In January 28 this year, the Appellate Tribunal for Electricity held that the Tamil Nadu Electricity Regulatory Commission should not change the rules on banking facility without undertaking a study based on proper data. It is also relevant to note that the Wind Tariff Order of the Commission normally have two parts. The first part is with regard to fixation of wind tariff based on several parameters and the second part is related to banking facilities and other charges. “It is relevant to note that the Commission so far arrived at the wind tariff for the wind mills based on the life of the wind mills either at 20 years or 25 years i.e., while fixing the tariff, the Commission considered the life span of wind mills either as 20 years or 25 years,” the association said. There is no correlation between the life of wind mills and banking facility, it added.

Source: The Hindu

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Reliance in talks to buy stake in home fashion brand Portico

Portico is a fast-emerging brand owned by the Creative Group that manufactures and sells bed and bath products through its own stores as well as other online and offline retailers. NSE -0.57 % is close to buying a substantial stake in Portico, a home fashion brand, two people with direct knowledge of the matter said. Portico is a fast-emerging brand owned by the Creative Group that manufactures and sells bed and bath products through its own stores as well as other online and offline retailers. According to both people, Reliance had approached the company for a majority stake In February last year, Reliance had said it would acquire a 37.7% stake in Alok Industries for ₹250 crore, after it bid jointly with JM Financial Asset Reconstruction Co for the bankrupt textile manufacturer. ET could not ascertain the likely valuation of Portico as negotiations are still under way. Reliance and Portico did not respond till press time Monday to emails seeking comment sent in the afternoon. On its website, Portico describes itself as one of the largest players in the home fashion segment. Number 2 player in the country. Its main prowess continues to be in the bed and bath segment, but is rapidly becoming a Portico also has operations in New York, but that entity is not part of the deal negotiations, one of the people said. The talks come at a time when Reliance is on a buying spree in the digital and retail segments, seeking to create an online-offline ecosystem that caters to all major needs of the consumer.

Source: Economic Times

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How this textile entrepreneur started a hyperlocal video commerce platform

If you take the colour of your mangoes or the sound of watermelons when tapped seriously, Hyderabad-based Weedeo promises not to disappoint with their video call features to connect directly with vendors and retailers. In 2017, Sujitha S was busy learning the ropes of her father’s textiles business in Coimbatore, so much so that she never saw herself starting a tech enterprise. But in 2018, Sujitha did just what she never imagined - launch a tech enterprise called Weedeo, offering a simple video-based shopping service that simulates consumers’ offline buying experience. Claiming to be the first hyperlocal video commerce app in the country, the Hyderabadbased platform has an in-built video calling service that allows users to connect with local vendors and markets, and explore everyday essentials to traditional products. Weedeo’s users can choose from a wide catalogue of grocery, pharma and wellness, home and furniture, electronics, books, and stationery, among others. While most retailers have been onboarded manually so far, it hopes to roll out a self-registration process by the end of this month.

The Eureka moment

The Eureka moment Hailing from a business family in Coimbatore, Sujitha holds Bachelor’s degree in Computer Applications and a Master's in International Business from PSG Institute of Management. After working in the textiles industry with her father in 2017, she moved to Hyderabad and founded Weaver’s Soul, along with her friend Shravan Kumar. The brand specialised in manufacturing Ikkat and other traditional fabrics along with rural artisans. However, the duo felt that weavers and the artisans do not get their due credit for their work in the market as customers are unaware of their hard work, and so purchase directly from sellers. That is when the idea for a video-based shopping experience to connect urban customers with rural artisans struck them. “Buying directly from the source not only means half the price available in the market, but weavers can also showcase the manufacturing processes as well,” Sujitha says. They also noticed that many shopkeepers and retailers resisted selling on ecommerce platforms due to the perception that onboarding processes are complicated. This prompted Sujitha and Shravan to found Weedeo, a video-based shopping platform that serves beyond the traditional textiles market and incorporates diverse product categories in the same year.How it works

Once a user signs up on the app, they can navigate through various product categories and choose a retailer in their vicinity. Before adding products to the cart, users can either choose to chat or video call the vendor directly through the app without opening third party apps or share their contact numbers with the vendors. “Although it is a video-first platform, users prefer to have options to chat and view pictures, and proceed to video calling when they are interested in certain products,” she says. Operating on beta mode till the end of July 2021, the startup has over 2,000 downloads, with at least one transaction every three days. The startup claims to be less focused on gaining downloads, and more on ensuring quality products and good retention rate. At present, its daily Gross Merchandise Value (GMV) stands between Rs 10,000 to Rs 20,000.

Bringing vendors online

Despite the rise in digital adoption and online payment infrastructure, the initial challenge for Weedeo was to gain the trust of retailers and vendors. “They would not trust easily and were hesitant about online payments, and whether it will get deposited in their bank accounts,” Sujitha shares. The startup began by manually registering them on the platform one by one, and wordof-mouth helped gain more retailers on board. It will soon roll out a self-registration process by the end of this month. A T-Hub incubatee, Sujitha says the incubator helped Weedeo navigate the tech entrepreneurship space and bolster its sales. The duo are now focused on scaling and entering other major cities this year.

Source: Your Story

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Contemporising heritage weaves for the modern Indian woman

Bangalore-based Label Krishnamani creates a bridge between the past and the future built of rich silks, Benares, heavy borders, embroidery and modern styles. What started out as a personal project with the designer creating her daughter’s wedding lehnga from a Kanjeevaram has now led to a deeper quest of contemporising heritage Indian weaves and motifs into simpler silhouettes that lend themselves effortlessly to the Indian woman’s lifestyle today. This Bangalore-based brand called Krishnamani takes up a weave or a textile from a corner of the country for each of its collections, upcycles them or designs them into newer silhouettes and transforms them into pieces that blend fashion with heritage. Their latest collection using Kanjeevaram and intricate zari detailing on jackets, skirts, kurtas and trousers is conceived to honour the cultural identity of the age-old weave as well as make it sustainable from the business point of view. In a candid chat, designer Krishnamani Ballal tells us more: How did your journey of restoring heritage saris begin? I have always been intrigued by the story in the history and traditions held in old weaves. I first designed a lehnga using a rich Kanjeevaram sari for my daughter’s wedding, five years ago. The stories it held, the lost motifs that belonged to families and dynasties adorned her on her big day and personified how we can carry our heritage on with us through evolving fashion. What made you transform that into contemporary wear? Beginning with the wedding lehnga, I followed with dinner jackets — a trousseau collection steeped in heritage. Indian weaves lend themselves into contemporary sensibilities easily. It’s a tale as old as time. It’s not the same as new styles coming in and out of our minds. I knew what I wanted to do was design across generations for generations to come. How do you strike the balance between designing contemporary silhouettes with Indian textiles and craft cultures? My anchor is to ensure I understand what I mean by contemporary. Contemporary, to me, is unique to your time but also timeless. The modern Indian woman has the confidence and ability to walk into a future that is truly hers and is aware of her roots. I design for that woman that makes striking the balance a relatively easy task. I don’t think of what’s trending or styles that will fade tomorrow, I think of the person first. How do you honour craft communities and how do you balance business with that? I source my fabric from artisans all over the country. Especially from weavers who have worked in the textile industry for generations. From a business point of view, I learn so much from them and their method of keeping motifs alive that it inspires my new collections and hence provides a continuity for business. What is the USP of your label and what do you think sets it apart from the others in the market? Inspired by weaves and motifs of yesteryear royal traditions, the ensembles in the collection are elegant silhouettes for the discerning woman — a bridge between the past and the future built of rich silks, Benares, heavy borders, embroidery and modern styles. This is what sets us apart.

Source: The telegraph

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Bangladesh: Exports on way to rebound backed by RMG recovery

Despite the double-digit growth, however, RMG export was still 6.89% below the annual target of $33.78 billion Exports in Bangladesh made a strong comeback in the 2020-21 fiscal year with a 15.1% year-on-year growth, hitting $38.75 billion. According to the latest Export Promotion Bureau (EPB) data published on Monday, the growth of exports soared thanks to RMG export recovery which earned $31.45 billion in FY21 — a 12.55% growth. Selim Raihan, executive director of South Asian Network on Economic Modeling (SANEM) said that in the last quarter of the 2019-20 financial year, exports declined at a significant rate due to the outbreak of the Covid-19 pandemic. “The growth of exports is encouraging from the shaky situation of FY20. Although export earnings are yet to return to normal, the growth that has taken place shows that our export sector is turning around,” he also said. Selim said that the RMG and other export-oriented industries that were outside of the lockdown have contributed a lot to this growth. “However, the fear has not yet subsided. If we can overcome the effects of the second wave, hopefully, we will be able to move towards normalcy,” he added. Despite the double-digit growth in RMG exports, however, the figure was still 6.89% below the annual target of $33.78 billion. According to the EPB data, knitwear items drew $16.96 billion, recording a strong 21.94% year-on-year growth. Woven products also posted a 3.24% positive growth, which was in the negative territory over the last one and a half years, reaching $14.49 billion at the end of the last fiscal year. The demand for both knitwear and home textile items soared globally as people stayed at homes for a long time due to lockdown and the pandemic, exporters said. SM Mannan Kochi, senior vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the exports were severely disrupted last year due to the pandemic. Compared to that, export has increased but it has yet to return to normalcy or the prepandemic levels, he added. Exports in FY21 were less than the pre-pandemic fiscal year of 2018-19, which was $40.53 billion. “Buyers' stores were closed due to the pandemic, many of them canceled orders or shipments were delayed. As the situation normalized, our entrepreneurs worked together to retain the buyers,” he added. He also said that keeping the factories open in accordance with health directives and the government’s incentives also helped the sector in turning around. “If all our demands from the government are fulfilled, we will be able to continue this growing trend of export and will soon be able to return to normalcy,” he added. He also said that the RMG entrepreneurs are always trying to keep the wheel of the country's economy moving by taking the RMG sector — dubbed the lifeline of the economy of Bangladesh — forward. Besides RMG, jute and jute goods, home textiles, and agricultural products are three other sectors to have crossed the $1 billion mark, the EPB data said. Jute and jute goods earned $1.16 billion in FY21, fetching a 31.63% growth, up from $882.35 million in FY20. Home textile also showed a very positive export growth by reaching the $1 billion mark for the first time. In the last fiscal year, earnings from home textile grew by 49.17% to reach $1.13 billion, according to EPB data. Agricultural products earned $1.02 billion fetching 19.27% growth in FY21. The earnings from this sector were $862.06 million in FY20. Moreover, leather and leather goods — another top export item of Bangladesh — posted an 18.06% growth earning $941.67 million in FY21, which was $797.6 million in FY20. The figure of total export earnings marked $33.67 billion in FY20.

Source: Dhaka Tribune

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Vietnam: Trade deficit nears $ 1.5 Bln

Vietnam had a H1 2021 trade deficit of $1.47 billion, compared with a surplus of $5.86 billion in the same period last year. The Ministry of Industry and Trade had reported a trade deficit of $1 billion in June, the second straight month that a deficit was recorded. Between January and June, local firms posted a trade deficit of over $15 billion, while foreign-invested enterprises secured a trade surplus of $13.64 billion. Production expansion after three waves of Covid-19 before April resulted in increased import of materials by local firms, the ministry explained. Local firms often import more materials in the first half of a year, but this is reduced in the second half, while export intensifies, the ministry said. Exports of such products to big markets, including the U.S., China and the European Union saw high growth in the first half of this year. Specifically, Vietnam earned $25.1 billion from exporting phones and their components, a year-on-year rise of over 14 percent; $17 billion from machines, equipment, tools and spare parts, up more than 63 percent; $15.2 billion from garments and textiles, up 14.9 percent; and $10.4 billion from footwear, up nearly 28 percent. The U.S. continued to be Vietnam’s biggest export market with a turnover of over $45 billion, up 43 percent plus, followed by China with $24.6 billion, up 25 percent plus and the European Union with $19.3 billion, up 17.4 percent. Meanwhile, China was Vietnam’s biggest import market with a turnover of nearly $54 billion, surging 53.6 percent year-on-year. Import turnover from South Korea rose 21.6 percent to $25.2 billion, and from ASEAN surged 49 percent to $21 billion. Vietnam is set to export more products, mainly electronics, machines, equipment, woodwork, garments, textiles and seafood in the second half of 2021, the ministry said, noting that the U.S. and European countries were removing lockdowns and global demand for goods was recovering. The country’s imports in the second half of this year is likely to be hit by the ongoing fourth Covid-19 wave in many cities and provinces, especially those with large production and import-export capacity like Bac Giang, Bac Ninh, HCMC, Dong Nai and Binh Duong.

Source: VN Express

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Cambodia: $2.4B in new investments for H1

The Council for the Development of Cambodia (CDC) approved 70 projects with a total capital investment of $2.428 billion in the first half of this year. This is according to calculations by The Post based on CDC statements issued via social media throughout the January-June period. The CDC approved 29 investment projects in textiles, garments, footwear and travel products with a capital investment of $194.71 million. The council also greenlit 12 electrical and bicycle components factories with a capital investment of $116.5 million, as well as four furniture plants with a capital investment of $55.6 million. Meanwhile, the CDC has approved three major projects in the energy sector, including a 700MW coal-fired power plant project in Sihanoukville Special Economic Zone, in Preah Sihanouk province’s Stung Hav district, with a capital investment of $1.283 billion. The other two projects were a $17.6 million 20MW solar farm in Monorom commune’s Monorom village in Svay Rieng province’s Svay Tiep district and a $7.8 million solar panel factory in Koh Kong province’s Kirisakor Special Economic Zone. In addition, the CDC has approved a number of projects in the hospitality sector, including a five-star hotel, as well as a food processing plant and an agricultural processing plant. Cambodia Chamber of Commerce vice-president Lim Heng noted that the textile, garment, footwear and travel goods sector accounted for the bulk of the value of the newly-approved investments, followed by electrical components and vehicle parts. He told The Post that new projects in the textile, garment, footwear and travel goods sector intending to produce for export to the EU were still being announced, despite the bloc partially withdrawing its ‘Everything But Arms’ (EBA) scheme last year. And trade benefits provided through the UK’s Generalised Scheme of Preferences (GSP) will encourage more foreign direct investment (FDI) inflows to Cambodia, he said. “The government’s 10-million-vaccinations campaign will also contribute to the growth of investment in Cambodia because investors will not be worried about the impact on their business activities,” Heng claimed. In 2019, investment approvals logged $9.40 billion, of which China invested $2.75 billion, followed by Hong Kong at $912.55 million and Japan at $298.84 million, according to the CDC.

Source: Phnom Penh Post

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Kenya Eyes New Market, Investment Opportunities In Expo Dubai 2020

Kenya is looking to attract new investors and expand its export market during the World Expo Dubai 2020 that was rescheduled for dates starting October 1, 2021, to March 31, 2022. The event was postponed by a year owing to the global outbreak of the coronavirus disease. Kenya Pavilion Director for Expo Dubai 2020 Austin Macheso said the event organizers already created a road map for various exhibitors and traders to hold talks on new market and investment opportunities globally. “We have initiated what we call pro-expo programs where we have already approached the main players within the Gulf Cooperation Council region for us to start discussing and engaging collaborations such as forums to plan how we can engage more,” said Macheso. United Arab Emirates (UAE) is the main market for Kenya in the greater Gulf Cooperation Council (GCC), a market that is comprised of Kuwait, Oman, Qatar, Bahrain, Saudi Arabia and United Arab Emirates The exhibition will also pave way for East Africa’s richest to introduce new products such textile, and honey, which will be showcased in the much-hyped World Expo Dubai 2020. “Traditionally we have been exporting we have been exporting tea and horticulture so we have new products such as textiles and apparels that we look to export to the region and increase the volume of what we are already exporting to the market,” Macheso adds. Macheso was speaking on Sunday during the flag off the 1st batch of the goods worth Sh63million to Dubai by the Kenya Export Promotion and Branding Agency. The Agency is the country’s responsible national authority for the Expo Dubai 2020. The categories of goods flagged off included coffee, tea, textiles, furniture, leather footballs, beauty products, coconut products, soap, sanitizers and assorted handicrafts Africa Freight Systems Limited Logistics head Peter Waweru said the containers are to arrive in Dubai within 2 weeks. “Much of the documentation work happens in Nairobi so its only the loading to the SGR and once in Mombasa the container is loaded to the vessel its shipped to Dubai, 14 days from today,” said Waweru. The six-month multibillion-dollar global innovation fair, set to be the largest such event ever staged in the Arab world, is expected to attract some 24 million visitors. So far, over 60 Kenyan exhibitors have signed up to sell their products through the World Market Initiative, and hope to use the platform to create job opportunities. “There are a lot opportunities because there is branding, marketing innovation which many of the youth can tap into,” said Founder AkinyiOdongo. The Agency said it will also maximize on the Expo 2020 to link Kenyan exporters to other market regions such as the European Market, American and South American Markets. Kenya targets to recruit over 5000 exporters, including SME’s to exhibit during the six months expo.

Source: Capita

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US budget deficit projected to hit $3 trn in fiscal 2021

The US economy is bouncing back from the COVID-19-induced downturn quicker than expected and is on its way to regain all jobs lost during the pandemic by mid next year, partly as a result of enormous federal spending that will push the budget deficit to $3 trillion for fiscal 2020-21 (October 1, 2020-September 30, 2021), the Congressional Budget Office (CBO) announced recently. Despite warnings by many quarters that runaway inflation from all stimulus package spending could cripple the economy, the US administration reinforced its view that inflation poses little threat to the recovery and the budget office predicted that a recent spike in prices for cars, airline tickets and other products would be temporary and start receding this year. Downplaying the deficit projections and focusing on economic growth predictions, government officials reportedly said the strong numbers validate President Joe Biden’s push to douse the economy in stimulus. The budget office predicted the economy would grow by 6.7 per cent for the year, after adjusting for inflation—the fastest annual growth in the country since 1984 and much faster than the independent projections early this year by the budget office and the US administration. The rate of unemployment is also likely to fall below 4 per cent next year and remain historically low for years to come, signaling a significant acceleration in job gains from what the office predicted in February. CBO has then said that unemployment would not fall below 4 per cent until 2026. Budget office officials said the uptick in growth and employment forecasts stemmed in large part from aggressive government stimulus. But the economy is also benefiting from consumers, who are rapidly spending savings they built up during the pandemic.

Source: Fibre2 Fashion

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