INTERNATIONAL
Textile Raw Material Price 2016-03-08
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1093.88 |
USD/Ton |
10.03% |
3/8/2016 |
|
VSF |
2037.42 |
USD/Ton |
0.45% |
3/8/2016 |
|
ASF |
1913.91 |
USD/Ton |
0% |
3/8/2016 |
|
Polyester POY |
1058.60 |
USD/Ton |
3.76% |
3/8/2016 |
|
Nylon FDY |
2209.25 |
USD/Ton |
0% |
3/8/2016 |
|
40D Spandex |
4525.89 |
USD/Ton |
-4.84% |
3/8/2016 |
|
Nylon DTY |
2098.02 |
USD/Ton |
0% |
3/8/2016 |
|
Viscose Long Filament |
1135.31 |
USD/Ton |
3.14% |
3/8/2016 |
|
Polyester DTY |
2470.06 |
USD/Ton |
0% |
3/8/2016 |
|
Nylon POY |
5717.96 |
USD/Ton |
0% |
3/8/2016 |
|
Acrylic Top 3D |
1258.04 |
USD/Ton |
3.14% |
3/8/2016 |
|
Polyester FDY |
2025.14 |
USD/Ton |
0% |
3/8/2016 |
|
30S Spun Rayon Yarn |
2746.22 |
USD/Ton |
0% |
3/8/2016 |
|
32S Polyester Yarn |
1626.25 |
USD/Ton |
0.95% |
3/8/2016 |
|
45S T/C Yarn |
2454.72 |
USD/Ton |
0% |
3/8/2016 |
|
45S Polyester Yarn |
1764.33 |
USD/Ton |
0.88% |
3/8/2016 |
|
T/C Yarn 65/35 32S |
2117.20 |
USD/Ton |
0% |
3/8/2016 |
|
40S Rayon Yarn |
2884.30 |
USD/Ton |
0% |
3/8/2016 |
|
T/R Yarn 65/35 32S |
2424.04 |
USD/Ton |
0% |
3/8/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0% |
3/8/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
3/8/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
3/8/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
3/8/2016 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
3/8/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15342 USD dtd.08/03/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The country's largest man-made fabrics (MMF) wholesale market at Ring Road in Surat which houses more than 165 textile markets and over 65,000 textile shops due to traffic chaos and market congestion, textile traders have started looking for options in other parts of the city. City’s textile markets will be soon getting new alternative address at Saroli. Saroli on Puna-Kumbharia road is fast developing as an alternative for Ring Road where more than 18 major textile market projects have been launched. Market developers said that the textile markets at Saroli have the capacity to accommodate all the 65,000 shops, presently being operated from the 165 textile markets on Ring Road. Every single textile market being built at Saroli is set up on a minimum of 10 lakh square feet area, whereas the markets in Ring Road are in an area of 2 lakh square feet. The textile traders have an opportunity to get shops in the size range of more than 15,000 square feet in the markets at Saroli.
Chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry (SGCCI) Devkishan Manghani said that the new markets coming up in Saroli are state-of-the-art, as far as the design and basic infrastructure are concerned. Each market has more than 50 elevators for loading and unloading of grey and finished fabrics, 50 percent of the market is reserved for parking, which includes container parking, and the road width is 80 feet. It is a perfect location for textile markets as Ring Road is getting congested. If one has to think considering the logistics, Saroli is the best option. Further, as all the dyeing and printing mills located in Kadodara and Palsana, the traders can easily send the fabrics for finishing for lower logistic costs, compared to Ring Road, said Shree Kuberji Developers chairman Naresh Agarwal, who has developed four textile markets in 40 lakh square feet area. Agarwal added that in the next two years, Surat's textile markets will have a new address at Saroli. Many textile traders have started shifting their shops to the textile markets at Saroli.
SOURCE: Yarns&Fibers
It is estimated that for every 1,000 looms, 600 people are employed. Presently, the sector does not have a training system for the 1.2 lakh workers directly employed in the power loom units in the two districts Coimbatore and Tirupur, according to M. Senthil Kumar, chairman of Southern India Mills’ Association. At a meeting held between textile sector skill council with the power loom associations and unit owners in the region on Monday, it has been decided that the power loom units in Coimbatore and Tirupur districts, with more than two lakh looms, is soon planning to have a standardised training system for the workers. The three textile research associations (NITRA, BITRA and SITRA) have developed curriculum for weavers and this would be finalised soon. There are five to six job roles in the weaving sector and a weaver need nearly 300 hours of training (nearly 40 days). The plan is to train the trainers through the council and since the power loom units in the two districts are located in clusters, the trainers can visit the units for developing the skills of the workers. The local power loom associations or individual units should take the village-level initiative. They can also become the manpower providing centres for the power loom units. Depending on the progress of the project, it could be replicated in other power loom clusters in the country too. The employees will get a certificate at the end of the training and this will benefit them when they move to other units for work too.
SOURCE: Yarns&Fibers
Union Textiles Minister Santosh Kumar Gangwar on Tuesday said that a Textile Park would be set up in Haryana at a cost of Rs.181 crore to promote the industry. Speaking at a special session on 'Haryana as Hub of Textiles, Apparel, Accessories and Leatherwear: Marking a Mark in the Global Landscape', on the final day of the two-day Happening Haryana Global Investors Summit here, he said that the government would give Rs.40 crore subsidy for this. A Rs.14 crore Incubation Centre would also be set up in Haryana for skill development of the youth associated with textile sector, said Gangwar, noting that after agriculture, textile was also an important sector to provide employment opportunities. The sector of readymade garments in Haryana is growing at a rate of 25 percent, he said, assuring the full support of his ministry for smooth functioning of textile industry. Skills of 15 lakh youth would be improved for development of this sector in the country, therefore, an Incubation Centre would also be set up in Haryana, said Gangwar, adding that Prime Minister Narendra Modi was also taking interest in the sector's development and had prior to the budget's presentation sanctioned schemes for the promotion of this sector. Others who also spoke on the occasion were Liberty CEO Adesh Gupta, Model Economic Township senior vice president Ajay Nijhawan, Matrix Clothing managing director Gautam Nayar, Shivalik Prints president Narender Aggarwal, DCM Textile managing director Hemant Bharatram, fashion designer Rina Dhaka and Marks and Spencer country manager Nidhi Dua.
SOURCE: The Sify News
If there is any measure that will strengthen the Make in India effort, especially in goods, it is the goods and services tax (GST). There are a number of reasons why this is so: First, it is expected that the total incidence of duty on manufacturing (goods) will come down from the present level of 26.5 per cent (Centre: 14 per cent, state value-added tax: 12.5 per cent). This will happen mainly through a more balanced sharing of the tax burden between the goods and the services sector. Second, it will create a level playing field between imports and domestic manufacturing. Today, the effective central excise duty rate on non-oil domestic manufacturing is nine per cent but the countervailing duty (CVD) neutralisation on the import side is only six per cent, creating a negative protection against domestic industry. This will go away with the introduction of the GST with the phasing out of all exemptions, including CVD exemptions, and the same GST rate will apply to both imports and domestic manufacturing. Third, today the general perception is that it is more profitable to trade than to manufacture. An important reason for this is that the tax burden on trading is much less than on manufacturing, which is compounded by tax leakages in the trading segment of the value chain. Concurrent taxation by the Centre and the states of the same taxable base from raw material to retail will facilitate better compliance verification. This will create a level playing field between domestic manufacturing and trading. Fourth, lower threshold limits for manufacturing under GST will prevent fragmentation of units. Today, a number of medium and large units are masquerading as small units to avail of exemption benefits, because "small" is defined on the basis of turnover rather than ownership. The GST will encourage small units to grow and reap the benefits of scale. Compliant units will benefit from a level playing field.
V S Krishnan: How GST can benefit Make in India While the benefits outlined will help organised industry in India, the advantages of a larger common market would fortify these advantages. The slogan of Make in India by "Making One India" coined in the chief economic advisor's GST report is apt. The making of "One India" is the making of one common market by eliminating inter-state taxes. These include the central sales tax, entry tax not in lieu of octroi and entry tax in lieu of octroi. The benefits will lower logistics costs. For example, one study shows that trucks in India in one day drive just one third of the distance of trucks in the US (280 km vs 800 km). Eliminating checkpoints and other entry barriers would facilitate faster movement of goods as roads are still the preferred mode of transportation in India. Industry can therefore keep inventory costs low by keeping inventory levels down.
The other less discussed advantage is the expansion of the market itself because of the lowering of inter-state barriers. This has happened on the taxation front where procedural simplification like e-registration and e-payment of duty has improved tax collections at the lower end of the taxpayer segment. A historical parallel was the passing of the Interstate Commerce Act of 1887 in the United States. Under this, the federal government appointed a regulator to control the tariffs fixed by railway companies. These companies had used their monopoly position to fix high rail tariffs that adversely affected small traders and small manufacturers, constricting the size of the market. By lowering rail tariffs, this Act helped expand the size of the US market and to a large extent fuelled the economic boom in the last decade of the 19th century (1890-1900). The same will happen in India where a market expansion will take place by lowering of inter-state entry barriers.
The GST will also help industry by easing the cost of doing business. The information burden cast on industry today through multiple documentation and complexities is enormous. The business process re-engineering done in the GST will obviate the need for paper documentation by completely relying on online information furnished in the registration and returns module by the taxpayer. This procedural transformation is captured in the tables given alongside. The greatest advantage of GST for the manufacturer is harmonisation of the best business practices not only between the Centre and the states but among the states too. The GST will not only promote Make in India by "Making One India" but in the process also forge the bonds of fiscal federalism. This will add one more dimension to the vision of cooperative federalism enshrined in our Constitution.
SOURCE: The Business Standard
Eager to shake-off allegations of favouritism towards BJP-ruled States, the Centre has distanced itself completely from the process of ranking States on the ‘ease of doing business’ index this year and instead given the task to the World Bank. “Instead of roping in the World Bank only as technical facilitator, as was done last year, the Department of Industrial Policy & Promotion (DIPP), this year, has engaged it to carry out the entire process of assessment, right from data collection to evaluation and ranking,” a government official told BusinessLine. The Centre has signed a three-year agreement with the World Bank assigning it to carry out the ranking process of States based on the already identified parameters as part of the annual report titled ‘Assessment of State Implementation of Business Reforms’.
Secretarial inputs
“The DIPP will give just secretarial inputs such as help in fixing meetings between State government officials and the World Bank and in organising workshops,” the official said. The ease of business ranking is important for States as it serves as an indicator to investors, both foreign and domestic, on the best States to make their investments in. Last year, the DIPP’s ranking of States, carried out jointly with KPMG and the assistance from World Bank, received flak from a number of Opposition parties and poorly ranked States for alleged favouritism. The main reason for the criticism was that Prime Minister Narendra Modi’s home state Gujarat topped the list and all top five positions were occupied by either BJP-ruled States or its allies. “By assigning the entire exercise to the World Bank, we have left no scope for criticism. Also, ranking of States on ease of doing business is a job best done by the World Bank, which has a lot of experience in this line,” the official added.
Key parameters
This year, the States are being assessed on the basis of 340 parameters, against 100 last year. The key parameters, though, remain the same and include factors such as online single-window system, land availability, property registration timeline, permits and environment clearances, online tax returns filing and a speedy dispute resolution mechanism. States have time till June 30 to submit their responses to the questionnaires given to them. “We hope that the final report will be out by August,” the official said. The DIPP initiated the exercise of ranking States last year as part of its efforts to improve the country’s ranking in the World Bank’s ease of doing business report where it rates 189 countries. India’s efforts paid off as its ranking improved 12 notches to 130 compared to 140 the previous year. It hopes to better its performance this year, the official said.
SOURCE: The Hindu Business Line
The second round of talks on India-Iran-Afghanistan trilateral transit corridor is expected to take place by the end of this month. India plans to expedite the negotiations in an effort to gain greater access to the Central Asian market. The first round of talks was held in Iran last year. “The second round of talks will take place in New Delhi. The idea is to now expedite its conclusion with the lifting of trade sanctions from Iran,” a top official told BusinessLine. Development of Iran’s Chabahar Port, which gives India direct access to Afghanistan and Central Asia, is at the centre of this transit corridor. The idea is to smoothen trade relations with these markets “bypassing Pakistan”, the official said. Under this, India will also develop a rail link between Chabahar in South-East Iran to Zahedan, near the Afghan-Iran border. India also plans to rope in some private players to develop the projects enlisted under the trilateral corridor. However, Iran is not keen on allowing private players from India to become part of the infrastructure projects at this stage. Minister of State for External Affairs VK Singh said in the Lok Sabha that the government had taken measures to improve trade relations with Iran after the lifting of sanctions. “Negotiations on an agreement on India-Iran-Afghanistan Trilateral Transit Corridor have made progress and the next meeting of experts to finalise the clauses will be held in India shortly,” the Minister said.
Recently, during his visit to India, Afghanistan Chief Executive Abdullah Abdullah had also urged Prime Minister Narendra Modi to expedite talks. “Together in a cooperative framework it will lead to higher economic activity with access to newer markets. India will directly be able to access the landlocked Central Asia. So trade and movement of people will substantially increase. In turn, South Asia and Central Asia gets connected and becomes a hub too,” said RU Das, professor, Research and Information System for Developing Countries.
SOURCE: The Hindu Business Line
Italy "believes" in India and it does not have to "prove" anything to establish that it is a "very stable market", a top Italian official said today against the backdrop of the Jat quota stir and a debate over free speech. Italian Trade Commissioner Francesco Pensabene made the remarks while announcing a two-year campaign, 'Italy: The Extraordinary Commonplace', to promote the European country's best of food, fashion and design among others. "We conceived this plan because we believe in India. India does not have to prove anything but India is a very stable market for us. "Just look at the growth rate of India, we push our companies to come over to India. I officially and personally believe that this is a great and stable country to be in," Pensabene said when asked about Italy's views on the ongoing debate over free speech and dissent.
US Ambassador to India Richard Verma, while speaking on the JNU row, had recently said diversity of "thought and speech" was one of India's great hallmarks which will "propel" it forward in the next century. Under the campaign, a series of focused events and activities in each sector will be held across the country to promote Italian lifestyle and businesses in India and to explore new business avenues for Italian companies. "Italy is also a country to invest and is the second largest manufacturer in Europe after Germany. It's not just about pizza and sunshine," Pensabene quipped.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 37.07 per barrel (bbl) on 08.03.2016. This was higher than the price of US$ 36.17 per bbl on previous publishing day of 07.03.2016.
In rupee terms, the price of Indian Basket increased to Rs 2495.94 per bbl on 08.03.2016 as compared to Rs 2433.35 per bbl on 07.03.2016. Rupee closed weaker at Rs 67.34 per US$ on 08.03.2016 as against Rs 67.27 per US$ on 07.03.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 08, 2016 (Previous trading day i.e. 07.03.2016) |
Pricing Fortnight for 01.03.2016 (12 Feb to 25 Feb, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
37.07 (36.17) |
30.61 |
|
(Rs/bbl |
2495.94 (2433.35) |
2096.17 |
|
|
Exchange Rate |
(Rs/$) |
67.34 (67.27) |
68.48 |
SOURCE: PIB
The Korea Trade-Investment Promotion Agency (KOTRA) signed a memorandum of understanding with the Investment and Trade Promotion Centre of HCM City (ITPC) last week to facilitate the exchange of investment and trade information between the two sides. The MoU also aims to boost import and export activities between the two countries, according to a leading Vietnamese daily. Pham Thiet Hoa, ITPC's director, said under the agreement, both sides would cooperate to disseminate information about the free trade agreement between Vietnam and South Korea, and solve obstructions in investment and trade in each other's markets. KOTRA also signed an MOU with the Saigon High-Tech Park to promote investment of South Korea firms in the hi-tech sector in Vietnam and boost co-operation between Vietnamese and South Korean businesses. The two sides also opened the Korean-Vietnam FTA Support Center in HCM city.
Roh Inho, Vice President of KOTRA in charge of ASEAN and Oceania, said the Vietnam and South Korea FTA, which took effect last December, opened opportunities for Vietnam's key export items, including farm produce, aquatic products, garment and textile and footwear to enter the South Korean market. Roh Inho said free trade agreements help attract the investment of enterprises from South Korea to Vietnam's garment market. South Korea has a high demand for tropical fruits like mango and pineapple, making it a promising market for Vietnam, according to the KOTRA official.
With lower tariff duties under the FTA, South Korean firms will have opportunities to boost exports of raw materials and accessories for the garment and textile sector, household equipment, cosmetics and others. In order to increase exports to South Korea, Vietnamese firms need to focus more on improving product quality, design and competitive prices. Speaking at the Korea-Vietnam FTA in HCM City, Park Noh Wan, the South Korean Consul General in HCM City, said more than 2,500 South Korean firms were operating in HCM City and neighbouring localities. Besides investment in labour-intensive industries like garment and textile and footwear, many invested in hi-tech sectors like electricity and electronics, contributing to the development of Vietnam's industrial sector, he said. Nguyen Thi Thu, deputy chairwoman of the HCM City People's Committee, said the city welcomed foreign companies, including those from South Korea, to research investment opportunities in the city.
SOURCE: Fibre2fashion
Global crude oil and gas prices are likely to remain at current lows for several years, with oil dropping to $25 per barrel if Iranian production more than offsets supply cuts elsewhere, Moody's Investors Service said on Tuesday. "Crude oil prices continue the decline that began in June 2014, reaching lows not seen in more than a decade. We currently expect oil and gas prices to remain close to current lows for several years, as excess supply in the market is slowly absorbed," it said. Moody's estimated oil prices to be around $33 per barrel in 2016, which will rise to $38 a barrel in the next and to $43 in 2018. US Henry Hub natural gas will average at $2.25 per million British thermal unit (mBtu) in 2016, rising to $2.50 next year and to $2.75 in 2018. "Moreover, there are downside risks to these assumptions if an increase in Iranian production more than offsets supply cuts elsewhere," it said, adding that oil prices in that scenario may dip to $25 a barrel and gas to $1.75 per mBtu. The main cause of the low oil prices is an "inverse supply shock" as due to technological changes, excess investment in capacity, and geopolitical factors like Opec's lack of agreement on curtailing supply, supply has outpaced demand even as demand has continued to grow, it said. "Increased production now vastly exceeds growth in oil consumption, even with consumption growth by major consumers such as the US, China and India," it said.
Moody's said it expect exposure to low oil prices to shave off 0.8 per cent from real gross domestic product (GDP) growth on average across oil exporting countries in 2016 and to weigh further on the sluggish global growth prospects. "For emerging markets overall, the combination of lower commodity prices, continued capital outflows, spillovers from slower Chinese growth, and country-specific domestic structural challenges have pushed down economic growth forecasts," it said.
SOURCE: The Business Standard
Global economic prospects remain clouded in the near term as emerging markets are losing steam and a coherent policy response is needed to boost overall growth, Paris-based think-tank OECD said today. Noting that India needs to address “a wide range of structural bottlenecks” in order to sustain strong medium-term growth, OECD said there is a severe shortage in public infrastructure in the country. The Organisation for Economic Cooperation and Development (OECD) said policymakers need to deploy broad-based reform plans to stimulate persistently weak demand, re-launch productivity growth, create jobs and build a more inclusive global economy. “Global growth prospects remain clouded in the near term, with emerging market economies losing steam, world trade slowing down and the recovery in advanced economies being dragged down by persistently weak investment,” it said in a report. “Growth slowdown observed among emerging market economies over the past couple of years also raises questions about their capacity to further closing the income gap vis-a-vis most advanced countries.”
Suggesting measures to boost growth, OECD said the case for structural reforms, combined with supporting demand policies, remains strong to sustainably lift productivity and the job creation that would promote improvements in equity. About India, the think-tank said the country needs to address a wide range of structural bottlenecks in order to sustain strong medium-term growth. “The most binding bottlenecks include high labour informality, severe shortages in public infrastructure and low educational attainment,” it added. Further, OECD noted that informal employment is exacerbated by various rigidities affecting the formal labour markets such as onerous labour regulations and stringent employment protection. Besides, there is high administrative and regulatory burden on entrepreneurship, which hinder job creation, it said. The report titled ‘Going for Growth 2016′ offers an assessment of how government policy reforms affect economic performance and their citizens’ well-being apart from identifying new priorities to revive growth. “The worrying slowdown in the global economy calls for an urgent and comprehensive policy response, drawing on all the monetary, fiscal and structural policy levers at governments’ disposal,” OECD Secretary-General Angel Gurria said.
SOURCE: The Financial Express
Vietnam need to tighten regulations on FDI to prevent Chinese FDI projects coming with cheap labor, intensive use of natural resources and destruction of the environment, experts said. Texhong Group is the most notable name among Chinese investors in Vietnam, with a $300 million fiber plant in Quang Ninh Province, which went into operation in 2013. In 2014, Texhong kicked off the project to build the Texhong Hai Ha Industrial Zone, also in Quang Ninh, with a total investment of $215 million and poured $300 million into a chain of textile plants inside its industrial zone. To serve the secondary projects here, Texhong is also preparing to build a 2,000MW thermal power plant. The Chinese group planned to invite about 200 Chinese enterprises to invest in its IZ in Quang Ninh, aiming to turn this IZ into a close textile-garment chain in Vietnam.
According to the Foreign Investment Agency’s statistics, Chinese FDI registered in Vietnam rocketed from $312 million in 2012 to over $2.3 billion in 2013. In January 2016, FDI China ranked third with $179.51 million. Dr. Nguyen Duc Thanh, Director of the Institute of Economic and Policy Research, the Hanoi National University, said that Chinese capital was flowing around the world, not only to Vietnam. As a neighbor of China, the flow is stronger. China has capital but does not have modern technology like Japan and South Korea so its FDI focuses on exploitation of natural resources and cheap labor. Such projects don’t benefit Vietnam. Economist Bui Trinh said that by welcoming Chinese FDI coming with outdated technology and exploitation of natural resources, Vietnam would lose natural resources while the country’s environment would be harmed. The problem has been considered for a long time but it has not been resolved. Dr. Tran Dinh Thien, Director of the Vietnam Institute of Economics said Vietnam was excited about integration and has forgotten the tragedies that can happen later. Vietnam need to tighten regulations on FDI to prevent such projects.
SOURCE: Yarns&Fibers
China's exports in yuan-denominated terms slumped 20.6 percent year on year to 821.8 billion yuan (126.3 billion U.S. dollars ) in February, while imports dropped 8 percent to 612.3 billion yuan, customs data showed on Tuesday. The decline in exports widened from a 6.6 percent decrease in January, but that of imports narrowed from 14.4 percent a month earlier, according to figures from the General Administration of Customs (GAC). The monthly foreign trade surplus shrank by 43.3 percent year on year to 209.5 billion yuan in February, down from 406.2 billion yuan a month earlier. Total foreign trade value in February fell 15.7 percent year on year to 1.43 trillion yuan, a steeper decline than the 9.8-percent contraction seen in January. Trade with China's biggest trade partner, the European Union, dropped 9.7 percent year on year in the first two months of 2016, GAC data showed.
In the same period, trade with the United States, its second biggest trade partner, went down 12.2 percent and that with the Association for Southeast Asian Nations (ASEAN), the third largest trade partner, dipped 14.9 percent. Trade by private firms, which accounted for nearly 40 percent of the country's total, slipped 7.3 percent year on year in the Jan.-Feb. period. State-owned companies fared worse, posting a 21.4-percent plunge in trade. Foreign trade in the first two months was 12.6 percent lower than a year earlier at 3.31 trillion yuan, with exports down 13.1 percent to 1.96 trillion yuan and imports down 11.8 percent to 1.35 trillion yuan. In the first two months of this year, the trade surplus narrowed by 15.9 percent to 615.9 billion yuan. In dollar-denominated terms, China's exports fell 25.4 percent from a year earlier in February, worsening from the 11.2-percent decline in January. Imports dropped 13.8 percent, a milder decrease than 18.8 percent in January.
Source: Xinhua.
Talking to reporters in Hanoi, Hu said although the global economic slowdown continued in 2015, the two countries’ trade still grew stably and fast. Vietnam is currently the second largest ASEAN trade partner of his country, following Malaysia, while China is the biggest exporter to and the fourth largest importer of Vietnam. China’s statistics show that bilateral trade revenue hit 95.8 billion USD in 2015, a year-on-year increase of 14.6 percent. That included 66.1 billion USD in China’s exports to and 29.7 billion USD in its imports from Vietnam, up 3.8 percent and 49.1 percent from 2014 respectively. Vietnam – China trade now accounts for 2.4 percent of China’s total trade turnover, rising by 1.4 percentage points from five years previously. In January 2016, 7.8 billion USD worth of goods were traded between the two neighbours, the counsellor noted. Based on those facts, he forecast they can reach the target trade of 100 billion USD this year, one year ahead of schedule, and turn Vietnam into China’s biggest ASEAN trade partner.
Regarding the imbalance in bilateral trade, Hu said the problem is being improved, citing his country’s data that Vietnam’s deficit in trade with China last year declined 7.4 billion USD from 2014. However, he also admitted that such imbalance cannot be solved in a short period of time. To help their trade develop more sustainably, the nations have employed various measures to re-balance trade, he said, adding that Vietnam has shipped a number of electronic products, machinery and high added-value goods to China, which in turn has boosted imports from Vietnam. The official said cross-border trade is an important part in their trade relationship. The two countries are negotiating a bilateral cross-border trade agreement. The group on border trade cooperation will hold a meeting in China’s Yunnan province on March 23 – 24 during which they will review the agreement and strive to sign it in 2016. Hu considered Vietnam’s revised Law on Investment, announced in July 2015, as relatively flexible. It aims to create an equal, fair and open environment for foreign invested businesses. At present, China ranks ninth among countries and territories pouring direct investment in Vietnam, he added.
Source: VNA.
