Heavy Industries Minister Mahendra Nath Pandey on Wednesday urged the domestic industry to work in the direction of increasing the manufacturing sector's share in the country's GDP. He said steps like the production-linked incentive (PLI) schemes would help in boosting domestic manufacturing. Share of manufacturing in GDP should be increased to 20-25 per cent, he said at an Assocham webinar. Manufacturing sector's share in India's GDP is estimated at around 17 per cent currently. The minister added that the government is taking steps towards promoting ease of doing business and enhancing the quality and standards of products. "Use of new technologies like robotics and 3D printing will help in improving quality in the manufacturing sector," Pandey said. He added that a PLI scheme for the auto sector is under consideration. The government has announced PLI schemes worth USD 26 billion for 13 sectors for enhancing India's manufacturing capabilities and exports. The sectors include advanced chemistry cell (ACC) battery, electronics/technology products, pharmaceuticals, telecom and networking products, food items, speciality steel and white goods.
Source: Economic Times
India recently overtook the United States to become the second-most sought-after global manufacturing destination, driven primarily by cost competitiveness, according to real estate consultant Cushman & Wakefield, which said China tops the list. The company recently released its 2021 Global Manufacturing Risk Index, which assessed the most advantageous locations for global manufacturing among 47 countries. The US is at the third position, followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland, Cushman and Wakefield said in a statement. Last year, the United States was at the second position while India ranked third.The consultant said that this indicates the growing interest shown by manufacturers in India as a preferred manufacturing hub over other countries. "The growing focus on India can be attributed to India''s operating conditions and cost competitiveness. Also, the country''s proven success in meeting outsourcing requirements has led to the increase in the ranking year-on-year," the statement said. The rankings in the report are determined based on four key parameters: the country's capability to restart manufacturing, business environment (availability of talent/labour, access to markets), operating costs, and the risks (political, economic and environmental). The baseline ranking for top manufacturing destinations is determined on the basis of a country''s operating conditions and cost effectiveness. "This switch in ranking is attributed to the plant relocations from China to other parts of Asia due to an already established base in pharma, chemicals and engineering sectors, that continue to be at the centre of the US-China trade tensions," the company added.
Source: Fibre2fashion
Textiles Ministry on Wednesday said that more than 1,500 artisans have been benefitted by training in 63 Samarth Training Centres. The Ministry is implementing the Samarth Scheme for Capacity Building in Textile Sector. The objective of the scheme is to provide demand driven, placement oriented skilling programmes to supplement the efforts of the industry in creating employment in textile and related sectors. The Ministry has adopted 65 clusters for overall development of artisans in a time-bound manner by ensuring self-sustainment of the artisans of these clusters. The upskilling of the handicrafts artisans are being done through providing technical and soft skill trainings under SAMARTH scheme to enable sustainable livelihood.
Source : PIB
PATNA: Bihar’s industries minister Syed Shahnawaz Hussain on Wednesday met Union food, public distribution and textiles minister Piyush Goyal in Delhi.
Hussain demanded that ethanol units of Bihar also should get benefits of the Centre’s subsidy scheme and the financing scheme of banks, in addition to the seven-year tripartite agreement among ethanol units, banks and oil marketing companies (OMC) for 100% buy-back of ethanol. During his meeting with Goyal, which was held at the Udyog Bhawan in Delhi, Hussain also made demands for two textile parks in Bihar. Hussain said at the meeting that under the government of India’s Mega Textiles Park Scheme, a minimum 1,000 acres of land is required. However, for an agriculture dominated state like Bihar, it would be difficult to arrange 1,000 acres of land at one place. He said that the government of Bihar has two land parcels of 200 acres each for textile parks and if the Centre accepts the demand of Bihar then immediately two textile parks could be developed in the state. After his meeting with Goyal, Hussain told TOI over phone that the meeting was very fruitful. There was a positive response from the union minister on the demand of two textile parks of 200 acres each for Bihar, he said. “For ethanol units, the Centre had come out with an Interest Subvention Scheme for setting up ethanol plants across India for which applications were accepted for a 30 days period starting from January 14, 2021. However, the Ethanol Production Promotion Policy of the government of Bihar was launched in March, 2021. It is important to note that eligibility for financing SOPs introduced by banks was restricted to those units which have approval under the scheme dated January 14, 2021. Thus, most of the proposed ethanol projects of Bihar are not able to avail the benefit under Interest subvention scheme of the Centre nor they are able to get benefit under financing SOPs of banks,” Bihar minister told Goyal.
Source : Times of India
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman reviewed the performance of the Public Sector Banks (PSBs) with their Chief Executives in Mumbai today. The review noted that the Government’s 4R strategy of Recognition, Resolution, Recapitalization and Reform as a response to the situation prevailing in 2014 had led to dramatic improvements at PSBs in 2020-21 on various parameters of profitability, capital adequacy, NPA reduction, checks on occurrence of fraud and mobilisation of funds from the market. Impact of 4R approach – Snapshot of Public Sector Banks in 2020-21 • Net profits of Rs. 31,820 crorehighest in five years • Gross NPAs at 9.1% (14.58% - March 2018) • Net NPA at 3.1% (7.97% - March 2018) • Provision Coverage Ratio at 84% (62.7% - March 2018) • 14.04% Capital Adequacy (Prescribed minimum – 10.875%) • Rs. 58,697 croreraised as debt and equity, of which Rs. 10,543 crore as equity alone As part of the interaction with MDs of PSBs, the Finance Minister highlighted the need for a sharper focus on customer service, credit growth to support MSMEs and underserved segments, as well as credit for national initiatives for infrastructure, PLI scheme and exports. Smt. Sitharaman particularly emphasised the necessity of making co-lending work for enhancing the reach of affordable credit especially to MSME and retail. Alongside, continued efforts were needed in recovery and in technology particularly in digital lending and innovation. The push towards financial inclusion had led to substantial gains but these efforts need to be sustained especially in the context of increasing use of technology. The Finance Minister exhorted PSBs to constantly strive towards ensuring that all Government announcements benefit the last man and woman on the street. Smt. Sitharaman directed banks to interact with export promotion agencies as well as with bodies of industry and commerce so that the requirements of exporters can be timely addressed. The banks were directed to interact regularly with the Federation of Indian Exporters Organisation (FIEO) so the exporters don't have to shuttle between various bankers. The Finance Minister highlighted that with the current changed times, industries now have the option of raising funds even from outside the banking sector. Banks themselves are raising funds through various avenues. These new aspects need to be studied to target credit where it is needed, She said. Smt. Sitharaman also highlighted that banks can play a crucial role by hand-holding industries from a particular sector to enable them to become an exporter and thereby play an important role in assisting the One District One Product scheme. Smt. Sitharaman pointed out that as suggested by Prime Minister Shri Narendra Modi, banks need to cater to the demands of the organic fruit sector of the North-East. Regarding the North-East region of the country in particular, the Finance Minister said that the logistics and export needs of North-Eastern states need to be looked after individually. The Finance Minister added that CASA deposits are piling up in Eastern States and that banks should provide a facility of greater credit expansion in that region. Overall, Smt. Sitharaman asked banks to work closely with State Governments to ensure credit reaches those in need of it. Regarding credit outreach, the Finance Minister said that between October 2019 and March 2021, banks had conducted an outreach programme and had distributed Rs 4.94 lakh crore of loans, and exhorted public sector banks to conduct a similar exercise this year as well. The outperformance of PSBs has continued in the April - June quarter 2021 as well. Overall profits in this quarter have been at Rs 14,012 crore and operational profits, fee income as well as treasury income has continued to see robust growth. This performance by PSBs is despite wide-spread disruptions caused by COVID-19 pandemic. Faith of markets in PSBs has become stronger with over Rs. 7,800 crore being raised as equity in the first five months of this year, as against Rs. 10,543 crore in all of last year. Amalgamations have happened and the benefits are coming through in terms of greater efficiency, more professionalism, lower cost and stronger capital buffers. At PSBs, the improvement in customer service and reach of PSBs has been enabled by adoption of digital banking, digital lending, feature-rich Mobile and Internet banking, more customer-friendly features and regional language customerinterface. Digital retail loan request initiation through digital channels has been enabled in larger PSBs, with retail disbursements from loan requests so initiated in the FY2020-21 amounting to Rs. 40,819 crore. Customer-need-driven, analytics-based credit offers have been given an impetus, resulting in Rs. 49,777 crore of fresh retail loan disbursements by the seven larger PSBs in FY2020-21. As a result, nearly 72% of financial transactions of PSBs are now done through digital channels, with doubling of customers active on digital channels from 3.4 crore in FY2019-20 to 7.6 crore in FY2020-21. During the pandemic, PSBs, private banks and NBFCs supported over 1.16 crore borrowers through the Emergency Credit Line Guarantee Scheme (ECLGS) alone. The success of ECLGS led to the Government increasing the ECLGS to Rs. 4.5 lakh crore as part of the announcements made on June 28, 2021. Alongside, there have been other initiatives such as the Guarantee Scheme for MFIs and for Capital Expenditure (CAPEX) in the health sector. The MFI scheme, for instance, has already sanctioned almost Rs. 1,000 crore just last week, the “Ubharte Sitare Scheme” was launched for identifying potential Mid sized and Small companies as our new champions in exports. At the PSBs review, the Finance Minister also launched the Enhanced Access and Service Excellence (EASE) 4.0 Reforms Agenda for FY2021-22 and released the Annual Report for EASE 3.0 (FY2020-21).
Source: PIB
Jharkhand is all set to launch its very own industrial and investment promotion policy to revive business opportunities in the State and transform the image of Jharkhand from a State of mines and minerals to a State full of opportunities across multiple sectors. The Government-led by Chief Minister Hemant Soren has been working tirelessly to attract investment in Jharkhand and to create a vast range of business opportunities in the state. The CM envisions establishing the State as one of the first and foremost investment destinations in the country. The CM will launch Jharkhand Industrial and Investment Promotion Policy 2021 at the Investor’s meet to be organised on August 27 and 28 in New Delhi. The investor’s meet will also include business to Government meetings with interested investors. During B2G, the Chief Minister will hold one on one meetings with all such stakeholders/ representatives from different business houses from across the country, where he will listen to the proposals and requisitions of investors for required interventions. With the launch of JIIPP 2021, the State Government is looking towards promoting business opportunities in the field of Textile and Apparels, Automobile, AutoComponents and Electric Vehicles, Food and Meat Processing, Pharma, Electronic System Design and Manufacturing, Tourism, Health, IT & ITeS, Renewable Energy, Breweries and Distilleries, Startup and Incubation centres, Education and Technical Institutes and other MSMEs. To establish the State as a hub of electronic manufacturing & system design, a dedicated Adityapur Electronic Manufacturing Cluster has been established near Jamshedpur under the aegis of Adityapur Electronic Manufacturing Cluster Limited, a special purpose company for the smooth functioning of EMC. Aditypur EMC is a greenfield project spread across 82 acres of land. The campus has 92 flatted factory units ready with plug & play facility. An area of 49 acres has been booked for open infra, which is ready to be allocated for 51 electronic manufacturing units. The Government aims to attract an investment of up to Rs 1,00,000 crore through JIIPP 2021. To attract a large number of investors the Government has proposed many attractive incentive provisions. The proposed Jharkhand Industrial and Investment Promotion policy promises investors up to 100 per cent relief from SGST for up to 9 Years whereas 75 per cent for large scale industries which is again for up to 12 Years. The policy incentivises investors up to Rs 25 crore as a comprehensive investment project subsidy with an additional 5 per cent incentive provision for SC/ST/Women/Specially abled investors. Apart from these, the policy has provisions for Early Bird Subsidy, Anchor Subsidy, Interest Subsidy, Power Subsidy and many more. Jharkhand is one of the largest producers of Tasar silk in India, 2nd Largest producer of Horticulture crops, ranked 5 th in Ease of Doing Business. 33 National Highways pass through Jharkhand, the state has excellent Rail, Road, Air and Port connectivity. Also, India’s 2nd multi-model water port has been made in the state of Jharkhand on the river Ganges, which opens up industries established in Jharkhand to the global market. It creates an excellent opportunity for the investors to connect to the markets of Indo-NepalBangladesh and North-East through waterways. The Government strives for industrial development in the State. To achieve desired results the Government is planning to attract new investments but also wants to revive ill/sick industrial units. The government has marked industrial units which can be revived and turned into production units, such industrial units will be restarted under the beneficial provisions of JIIPP 2021.
Source: Daily Pioneer
Many companies go beyond and tackle problems of the environment and of social underdevelopment. They become a draw for ethical investors. A Crisil study finds that India Inc’s cumulative corporate socialresponsibility (CSR) spending since 2014 has crossed the ₹1 lakh crore milestone. This is not a mean achievement, although 40% of the spending over the last two years has been on account of companies counting Covid relief measures as CSR. Companies are mandated to spend 2% of average net profit over the past three years on CSR and non-compliance attracts a penalty (thankfully, the offence has been decriminalised). When multiple entities attempt the same task in discrete efforts, there are multiple inefficiencies, ranging from absent economies of scale to diversion of funds to publicity, administration and duplication. The larger the spending on CSR, the greater the wastage. To avoid this, the government must scrap mandated CSR and let companies go back to voluntary CSR. Companies that are good at carrying out CSR would do it by themselves. Already, investment that takes into consideration environmental, social and governance (ESG) practices creates an incentive for many companies to carry out voluntary CSR. It would be less wasteful than mandatory CSR, making the case for the government to scrap mandated CSR compelling. Soap makers promoting handwashing and manufacturers spending good money on developing shop floor skills are good examples of CSR that add to, rather than taking away from, the bottomline and benefiting society at large. Profitable companies contribute a lot to society, just by being what they are. They generate jobs and incomes, meet social needs, pay taxes and allow people’s savings to be converted into capital that generates returns for capital providers. These firms also nurture the common good by advancing the frontiers of creativity and innovation. Many companies go beyond and tackle problems of the environment and of social underdevelopment. They become a draw for ethical investors. It helps improve their valuations. Finally, mandating CSR is akin to levying an additional tax and asking the companies to spend the proceeds themselves.
Source: Economic Times
The Indian retail sector has its own uniqueness and the country is one of the most exciting markets worldwide that is poised to grow to over a trillion dollars by 2025, according to Walmart Inc. president and CEO Doug McMillon. Addressing the Converge@Walmart event, McMillon said that given the diversity of the Indian market, the company has to "think local and execute locally". "India is such a diverse market, it's not one country in some ways and so we have to think local and execute locally, and it has its own rules, and so, we've got to comply with those rules," he said. McMillon added that currently, Walmart is not permitted to make an FDI in multibrand retail and so, the company operates in a different way. "I do think we have seen and will see generation skipping in India, which will be exciting and some of that learnings, we will bring back to other markets that we have," he said. The top executive highlighted that India is one of the top three markets, along with the US and China. The Converge@Walmart event is the flagship event of Walmart Global Tech India. "We think the future is very bright, and we are going to see a market that is North of trillion USD by 2025, I believe. And the way that it is evolving is common in some ways with what we see in other countries, but has its own uniqueness, which makes it exciting," McMillon said.
Source: The Hindu
Delhi-based Sowtex Network, founded in 2017 by Sonil Jain, is a B2B sourcing platform for textile buyers and sellers. It offers 46 categories of items on its platform including fabrics, motifs, laces, badges, apparel machines, testing equipment, neck patches, and much more. The Indian textile tradition is one of the oldest in the world. Beautiful fabrics from the region are popular worldwide, providing a uniqueness to India’s culture and heritage. However, the reality behind the industry is not so smooth as the market suffers from a highly unorganised and fragmented way of working. In addition, the presence of several middlemen in the value chain also makes it difficult for a buyer to get a fair price. However, change is on the horizon. There are now numerous business-to-business (B2B) platforms in the country - IndiaMart, Yarn Bazaar, Fashioniza, and more, are digitising and streamlining this industry. Adding another name to this list is Delhi-based Sowtex Network, a B2B sourcing platform for textile buyers and sellers, founded by Sonil Jain, who SMBStory spoke to this week. Sowtex offers 46 categories of items on its platform including fabrics, motifs, laces, badges, apparel machines, testing equipment, neck patches, buttons, threads, interlinings, yarns, zippers, and much more. Even though the company is yet to report a breakthrough in terms of revenue numbers, it claims to have facilitated business worth Rs 20 crore since its inception in 2017. Digitising the textiles industry After working as a banker in Australia, Sonil Jain returned to India in the year 2000, and joined his family business of textiles soon after. Working in the family business as well as launching his own fashion label in 2006 gave Sonil enough exposure into the workings of the industry. One challenge that he constantly faced was finding or discovering the right sources for raw materials as well as other products needed in this industry. “This gap was constant and at one point, I felt that it could never be fulfilled,” recalls Sonil. This thought turned out to be a turning point in Sonil’s journey as he realised that he needs to take the reins. In 2017, Sonil launched Sowtex as an online platform where buyers and sellers belonging to fashion and textile industries could gather together and engage according to their requirements. Sonil claims the first 1000 merchants came on the platform within the first six months of the launch of the business. Sowtex’s growth story Until a few years ago, and probably even now, it is largely unfathomable that two people can join hands to start a business without meeting each other even once. But, thanks to digitisation, this is increasingly becoming a reality. Sonil, however, admits that the initial years were not easy, and one of the main challenges initially was convincing people to get on board the platform. “I would often tell people that if Amazon can sell so many things online then why can’t the B2B community go online?” But, what worked enormously for Sowtex is maintaining visibility and transparency. “We constantly engage with the users to understand their set of requirements,” he says, adding, “We give out detailed information regarding pricing, delivery time and more to the buyer.” When a deal closes, Sowtex makes it a point to circle back to the buyer to understand if his requirements are fulfilled. This feedback also gives an understanding of the seriousness of the seller, and helps in verifying him for future closures. Apart from providing ready stock, another key element in Sowtex’s business model is stock liquidation. “The biggest challenge for a manufacturer is dealing with the stock it ends up accumulating at the end of a particular season. Since they have limited resources, it makes it difficult for them to find buyers within their immediate reach.” To solve this, Sowtex has built a stock library especially for this purpose, and such that it helps manufacturers upload and list their stocks. The buyers can use filters according to design, colour, etc, and buy these stocks as per their requirements. This platform transcends geographies, clusters and other barriers, and is a win-win for both entities, says Sonil. The intention behind starting Sowtex was to bring the industry closer and eliminate the role of middlemen, which it has largely accomplished. The seller gets a good price for his produce whereas the buyer can get a price which is 5 to 25 percent cheaper, Sonil claims.
Source: Your Story
• The Northern Key Economic Region of Vietnam has emerged as an important investment destination offering potential opportunities for foreign investment.
• Each city and province in the region has different strengths and factors to be considered, especially for investors looking to relocate and complement their China manufacturing operations in Vietnam.
• Vietnam Briefing explores the Northern Key Economic Region and highlights the economic performance of each city and province in the region.
Vietnam has emerged as an important investment destination for foreign investors. With a strong GDP and ideal investment conditions, choosing the right location for your operations is an important factor when planning a relocation. Vietnam can be divided into four key economic regions (KERs): Northern, Central, Southern, and Mekong Delta regions. These four KERs consist of 24 provinces and municipalities, playing an extremely important role in promoting Vietnam’s economic growth. In this article, we will look at and focus on the Northern KER. Overview of the Northern KER The Northern KER comprises seven cities and provinces, including Hanoi, Hai Phong, Quang Ninh, Vinh Phuc, Bac Ninh, Hai Duong, and Hung Yen. As a whole, it contributes to more than 32 percent of the national GDP (ranked second after the Southern KER) and accounts for 26 percent of the total FDI capital of the country. In the 2016-2018 period, the Northern KER’s average GRDP growth rate was 9.08 percent, making it the fastest-growing region in all four KERs. The region’s GRPD per capita in 2018 was US$4,813, which was 1.6 times higher than the national average. The average export growth rate of the Northern KER in the 2016-2018 period reached 25.6 percent and made up 32 percent of Vietnam’s export. The region’s export turnover in the period of 2016-2020 also increased by 57 percent, which is much higher than the national growth rate of 38 percent. In 2020, all seven cities and provinces of the Northern KER had positive GRPD growth rates. In particular, Hai Phong and Quang Ninh respectively ranked second and third in terms of having the fastest GRDP growth rate nationwide. The Northern KER’s economic structure has been gradually shifting towards industrialization. The industry and construction sector continues to be the growth pillar of the region, contributing 40 percent to the country’s GDP in the 2016-2018 period. The key sectors include electronics, electricity, automobile, shipbuilding, textiles, and supporting industries.
Foreign Direct Investment (FDI)
Following Resolution No. 128/NP-CP by the Government on tasks and solutions to promote the development of key economic regions, the Northern KER focuses on attracting investments from high-tech industries and high-tech services, financial banking, specialized medical and supporting industries. With its proximity to China, competitive labor costs, and the manufacturing and processing industry, the Northern KER has positioned itself as an ideal location for China plus one manufacturing. According to the MPI, as of 2020, the Northern KER received a total registered investment capital of US$101 billion with more than 10,000 projects across seven cities and provinces. Major foreign investors are mainly from South Korea, Japan, the US, Taiwan, and the EU. The region is home to large FDI enterprises with high export value, playing an extremely key role in the country’s export growth. The long lists include large multinational foreign firms such as Samsung, LG, Fujico, Denso, Microsoft, Canon, Bridgestone, Chevron, Pegatron, and so on. The FDI firms in the Northern KER account for more than 80 percent of the region’s total exports. Large-scale industrial zones attracting significant FDI investments are concentrated in major cities and provinces such as Hanoi, Hai Phong, and Bac Ninh. Nevertheless, while all seven cities and provinces of the Northern KER are developing towards electronics and hardware industries, most of the activities are low-value add such as hardware assembling; research and development of high-tech products is still very limited. Similarly, software and digital content industries are mostly concentrated in Hanoi, but are of small scale and low competitiveness.
Infrastructure
Multiple major infrastructure and transportation networks are increasingly upgraded to improve connectivity between localities within the region. One of the most important projects of the Northern KER, for example, is the construction of the Van Don – Mong Cai Expressway in Quang Ninh, which upon completion this year will connect the Hanoi – Hai Phong, Hai Phong – Ha Long, and Ha Long – Van Don highways to create the longest highway in Vietnam. It is expected to reduce transportation time and costs, promoting cross-border transit trade between Vietnam and China and other ASEAN countries. The improvement and expansion of major international ports for container traffic in the Northern KER have contributed to the development of the logistics industry and enhanced the region’s competitiveness with the Southern KER. According to the Ministry of Planning and Investment (MPI), the Northern KER has 27 logistics centers, accounting for 55 percent of the total number of logistic centers in the country (14 centers in Bac Ninh, 11 in Hanoi, and two in Hai Phong). Each city or province in the Northern KER has its own advantages and key economic sectors with a different economic policy and development. We explore these below.
Overview
Hanoi is the capital of Vietnam and also the largest economy of the Northern KER. It is home to 8.25 million people, making it the second-largest city in Vietnam, only after Ho Chi Minh City. It is also the city that has the highest percentage of trained labor force in Vietnam at 48.5 percent. In 2020, according to the Hanoi Department of Planning and Investment, the city’s GRDP was worth US$45 billion, and GRDP per capita was US$5,420, which was 1.5 times higher than that of 2015. As the second-largest economy of the country, Hanoi contributed to more than 16 percent of the national GDP, 18.5 percent of the state budget, and 8.6 percent of the total import and export turnover of Vietnam.
Economic sectors
As opposed to other cities and provinces in the Northern KER, the service sector accounted for the highest share of the city’s output at 62.79 percent, followed by the industry and construction sectors at 23.67 percent. The processing and manufacturing industry currently accounts for about 91 percent of industrial output. Hanoi’s industry sector is gradually shifting towards developing hightech industries with great export value, such as digital control, automation, robotics, nano, plasma, laser, and biotechnology. In 2020, there were about 11,000 IT companies in Hanoi with total annual revenue of US$10 billion, and accounting for more than 20 percent of the export turnover of the city.
FDI performanceUp until 2020, Hanoi ranked second in attracting foreign investment with a total registered capital of US$35.9 billion for 6,384 licensed projects. It is considered one of the cities in Vietnam that has the most favorable investment environment for high-tech investors. For example, the Hoa Lac Hi-Tech Park, which is the first and largest hi-tech park in Vietnam with a total area of 1,586 hectares, enjoys various investment incentives regarding corporate income tax and preferential tariffs. Hai Phong Overview Hai Phong, the biggest port city in the Northern region and the third-largest city in Vietnam is home to more than two million people. Being close to Hanoi and the only city in the North that has five modes of transportation: railways, roadways, airways, inland waterways, and maritime, it is an indispensable player in promoting the economic development of the region. Economy Since 2018, Hai Phong has consecutively ranked second in terms of GRDP development, maintaining a growth rate above 10 percent annually. In comparison with 2019, the Index of Industrial Production (IPP) of Hai Phong in 2020 increased by 14.6 percent, ranking second after Bac Giang. The industry and construction sectors have the highest share of the city’s GDP at 49.73 percent, followed by the services sector at 39.51 percent. The agriculture, forestry, and fisheries sectors only accounted for 4.6 percent. Despite the impact of COVID-19, in 2020 the manufacturing industry of Hai Phong such as the manufacturing of automatic equipment, mobile components, electric motorcycles, and automobiles for example, still managed to maintain high growth rates. FDI As of 2020, Hai Phong received a total registered investment capital of US$20.20 billion, becoming the six-largest FDI recipient of the country. The city is popular with investors from Japan, South Korea, China, the EU, the US, and Taiwan. Leading FDI projects include Samsung (South Korea), Bridgestone (Japan), and Pegatron (Taiwan). With its geographical location, improved infrastructure, and numerous government incentives to attract FDI, Hai Phong is an ideal investment location for foreign investors considering the China plus one strategy operation in Vietnam. Quang Ninh Overview Located in the northeast region of the country, Quang Ninh is the only locality in Vietnam that shares both land and sea borders with China. Quang Ninh together with Hanoi and Hai Phong create the economic triangle in the North. It is also home to the UNESCO World Heritage Site Ha Long Bay. Economy Quang Ninh’s economy has received a lot of attention for its outstanding achievements. In 2020, Quang Ninh was in the top three fastest GRDP growing localities, only after Bac Giang and Hai Phong. The province also has the highest GRDP per capita of the Northern KER at US$6,700. Since 2017, Quang Ninh has consistently ranked first in the Provincial Competitiveness Index (PCI) for four years in a row. The IPP growth rate in 2020 of Quang Ninh was at 8.9 percent, coming third after Bac Giang and Hai Phong. The industry and construction sectors continue to dominate with 51.82 percent share of the province’s GDP. The service sector comes second at 29.91 percent, followed by agriculture at 6.06 percent. Quang Ninh is well known for many advantages in natural resources, especially coal. As long as the demand for fossil fuels continues to rise, the energy industry in Quang Ninh has potential. The sector has, therefore, attracted a great deal of attention from the government and foreign investors. Other mineral resources such as limestone, clay, and kaolin are also available in large quantities, serving the needs for raw construction materials of the domestic market and even exports. FDI Until June 2021, Quang Ninh lured around 150 FDI projects with total registered investment capital of more than US$7.5 billion. FDI projects in Quang Ninh mainly focus on real estate business (infrastructure of industrial zones, or factories for lease), textiles, mechanical engineering, electrical and electronic equipment assembling, and food processing.
Source: Vietnam Briefing
Apparel exporters and spinners in Bangladesh have set an upper ceiling on the price of count 30-single yarn to prevent any unusual price hike of the item in the domestic market. Following a continuous rise in yarn prices in the last 30 days, leaders of textile and garment associations met recently and set the maximum price of 30-count yarn. The meeting convened by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) decided the upper ceiling of the 30s cotton carded yarn at $4.20 a kilogram and 30s cotton combed yarn at $4.50 a kg. Readymade garment exporters in the country had been requesting the government for the last few weeks to make yarn import open through all land ports, alleging that the price of the item had increased by 50-60 per cent in the domestic market compared to that in the international market, according to Bangla media reports. Exporters alleged that the unusual price hike of yarn in the local market eroded their competitive edge on the global export market. If the global cotton index exceeds 100 points, an upward revision of the yarn price will take place in the local market and if the index goes down below 85 points, the price will be reduced, BTMA president Mohammad Ali Khokon was quoted as saying.
Source: Fibre 2 Fashion
Professor Parik Goswami hopes to strengthen the links between the University of Huddersfield and the fashion and textile industry after becoming the first academic to be appointed to the board of the UK Fashion and Textile Association (UKFT). Head of the Department of Fashion and Textiles and Director of the University’s Technical Textiles Research Centre (TTRC), Professor Goswami will help the UKFT to look at innovation, R&D and sustainability in the industry. He is already on the advisory board of Textiles 2030 that is led by WRAP, a global NGO based in the UK that advises on improved use of natural resources in fashion and textiles. “We want to associate ourselves with industrial organisations and initiatives like UKFT and Textiles 2030 so we can bring that knowledge to our students,” says Professor Goswami. “At the same time, we want to bring cutting-edge knowledge to the industry for the economic development of this important industry. “We want our students to know the theory of what we teach, but we also want them to understand the micro-environment they work with. That means understanding the challenges of working with the industry and what its future may be, so they can strategically learn what they need to work in the industry over the next few decades.#“I am delighted to join the board and I am looking forward to work with my colleagues in a meaningful way for the betterment of the UK fashion and textiles ecosystem. UKFT plays a very important role in this ecosystem, and we want our industries to have access to cutting-edge knowledge and a framework for commercialising state-of-art concepts and technology.” UKFT works across a wide range of projects to help the UK industry take full advantage of these new technologies and markets and to help change the future landscape of the textile industry in the UK into one where circularity and environmentally sustainable supply chains are the new normal. Most recently, UKFT has started working with IBM, Tech Data and the Future Fashion Factory to design, prototype and pilot a new technology platform to help the UK fashion and textile industry to drive sustainability and profitability through increased transparency within the supply chain. Retailers Next, H&M (COS brand), N Brown, New Look and yarn manufacturer Laxtons will be part of the initial pilot. The University’s alliance with UKFT also taps into the decades of tradition of the fashion and textile industry in and around Huddersfield. “We have heritage but we know how to blend heritage with cutting edge so we are leading our industry rather than following it,” adds Professor Goswami. Adam Mansell, CEO of UKFT, said: “We are delighted to welcome Professor Goswami to the UKFT board to strengthen our links with academia and help shape our work on innovation, R&D and sustainability. “Parik brings a fantastic insight into the technical textile sector and has also been instrumental in driving forward the fashion and textile courses at Huddersfield. “We believe these areas will be critical for the UK fashion and textile industry’s economic recovery and growth in the years to come.”
Source: Retail Times
The government has lost about P1.6 billion in revenue to tax credit certificates (TCCs) given to six unqualified textile makers, the Department of Finance said. The DOF yesterday said the TCCs were granted to the textile firms from 2008 to 2014 despite failing to meet the requirements for securing such incentives. These tax perks were now invalidated by the Commission on Audit (COA). According to the DOF, the tax credits were handed to Capital Roll Knit Corp. (CRC), UniGlory’s Knitting Corp. (UKC), Primeknit Manufacturing Corp. (PMC), Tai-Cheng Integrated Resource Inc. (TICIRI), Miskhu Industrial Corp. (MIC) and Universal Pacific Knitting Mills Inc. (UPKM). The COA, in its report submitted to the DOF, said it issued notices of disallowance to these firms for getting P1.19 billion in TCCs in the first quarter. In the next quarter, the COA flagged another P389.27 million in tax perks that failed to comply with requirements. The COA added the firms obtained the TCCs from the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center between 2008 and 2014. The tax credits, state auditors said, should be nullified as the violating firms were either not engaged in export trade, or they fell short of the criteria set by regulators. CRC tops the list of illegal TCCs acquired at P664.92 million, followed by UKC’s P241.68 million and PMC’s P214.31 million. Also, TICIRI amassed P198.81 million worth of tax perks, while MIC and UPKM obtained P136.98 million and P127.81 million in TCCs from the government. The DOF said several officials and employees working for the agency, Board of Investments, Bureau of Customs and the one-stop shop were held liable by the COA for approving the TCCs given to the textile companies. Exporters and manufacturers can apply for tax credits for duties that they owe the government, then they can use the savings to comply with similar liabilities due to authorities. However, the DOF said some firms abuse this practice by selling the TCCs to fellow enterprises. As such, the buyer of the TCCs will use the tax credit to reduce their dues to the government. In the process, the economy loses revenue on leakages that could have been collected if only the TCCs were used as intended.
Source: Philstar
Intertek, a leading Total Quality Assurance provider to industries worldwide, is pleased to announce that it has been accredited by the ANSI National Accreditation Board as an approved certification body for the Global Organic Textile Standard (GOTS). GOTS is the world’s leading processing standard for textiles made from organic fibers. It defines highlevel environmental and social criteria along the processing and manufacturing of the organic textiles supply chain. GOTS aims to harmonise organic cotton standards to achieve international recognition. GOTS sets worldwide requirements for environmentally friendly production systems and social accountability in the organic textile sector. GOTS, along with Textile Exchange’s OCS (Organic Content Standard), provide an impetus for increasing global organic cotton production and is a trusted tool to for companies to verify and communicate organically grown content claims to the industry. The GOTS requirements draws on the advice of, and input from, other relevant international stakeholder organisations and experts for regular standard updates.
Intertek is accredited for GOTS to certify in three scopes: Mechanical textile processing and manufacturing operations and their products Wet processing and finishing operations and their products Trading operations and related products Customers using Intertek for GOTS certifications as well as Textile Exchange certifications (GRS, RCS, OCS), will also have access to Intertek SourceClear. SourceClear brings visibility and traceability in supply chain relationships together with independent validation of product sustainability claims such as recycled content, organic materials, good environmental and social practices where products are manufactured and accurate labelling of products. Calin Moldovean, Intertek President of Business Assurance and Food Services, said: “With consumers making decisions based on brands’ sustainability goals, it is important that companies can show their customers the choices they make across their supply chain. We are proud to expand on our other Textile Exchange accreditations for sustainable material claims and to now provide GOTS certification and SourceClear to our customers, enabling greater traceability across the supply chain so that our customers can demonstrate their sustainability commitments with total confidence, while helping conscious consumers make better informed product choices towards a more sustainable future.”
Source: Openpr
