|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1046.08 |
USD/Ton |
-1.87% |
3/28/2016 |
|
VSF |
2095.23 |
USD/Ton |
0% |
3/28/2016 |
|
ASF |
1922.16 |
USD/Ton |
0.60% |
3/28/2016 |
|
Polyester POY |
1056.80 |
USD/Ton |
-1.22% |
3/28/2016 |
|
Nylon FDY |
2274.43 |
USD/Ton |
0% |
3/28/2016 |
|
40D Spandex |
4518.22 |
USD/Ton |
0% |
3/28/2016 |
|
Nylon DTY |
5708.27 |
USD/Ton |
0% |
3/28/2016 |
|
Viscose Long Filament |
1278.89 |
USD/Ton |
0% |
3/28/2016 |
|
Polyester DTY |
2105.95 |
USD/Ton |
0.36% |
3/28/2016 |
|
Nylon POY |
2105.95 |
USD/Ton |
0.55% |
3/28/2016 |
|
Acrylic Top 3D |
1148.70 |
USD/Ton |
-1.32% |
3/28/2016 |
|
Polyester FDY |
2511.82 |
USD/Ton |
0% |
3/28/2016 |
|
30S Spun Rayon Yarn |
2848.78 |
USD/Ton |
0% |
3/28/2016 |
|
32S Polyester Yarn |
1730.71 |
USD/Ton |
-0.88% |
3/28/2016 |
|
45S T/C Yarn |
2450.56 |
USD/Ton |
0% |
3/28/2016 |
|
45S Polyester Yarn |
2986.62 |
USD/Ton |
0% |
3/28/2016 |
|
T/C Yarn 65/35 32S |
2450.56 |
USD/Ton |
0% |
3/28/2016 |
|
40S Rayon Yarn |
1853.24 |
USD/Ton |
0% |
3/28/2016 |
|
T/R Yarn 65/35 32S |
2113.61 |
USD/Ton |
0% |
3/28/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0% |
3/28/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
3/28/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
3/28/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
3/28/2016 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
3/28/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15316 USD dtd 28/03/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India's merchandise exports have been contracting for the last 15 months. India's 40% of the total exports are handled by the MSME sector which feels that it's the country's trade agreements which are not helping them much for competing globally. The textile exporters have been seeking review of India’s trade agreements like the Free Trade Agreements (FTAs) and Preferential trade Agreements (PTAs) to check decline. Experts opine that India has signed many trade pacts, more for geo-political reasons rather than commercial reasons. KNN spoke to MD of Neetee Clothing, Animesh Saxena, who said that although the teaxtile and garment exporters did not suffer as much as the other sectors in the past few months, still there is a “policy paralysis” from the government side. “Our internal costs are very high. Also, the trade agreements are against us. Bangladesh and other countries have free access to European market but our materials are 10-12% costlier than theirs,” Saxena said. He said that Vietnam is India’s competitor now. “India should finalize its stuck treaties. The government should also bring down the internal transaction costs and port charges to make Indian exporters competitive,” he said.
According to a media report, industry body Assocham recently said that, “One case is the South Asian Free Trade Agreement, which has not resulted in any significant export gains. India's trade deficit has widened with the ASEAN. Further, most of India's PTAs are shallow in terms of product coverage. For example, the India-Mercosur PTA doesn't include textiles and apparel items, which face prohibitive import duties of up to 35 per cent.” India's trade pacts have exacerbated inverted duty structure – high import duties on raw materials and intermediates, and lower duties on finished goods – that discourage the production and export of value-added items. Thus, apparel can be imported into India duty free while its raw material –manmade fibres attract an import duty of 10 percent. Meanwhile, Arvind Sinha, President of the Textile Association (India) told KNN that the falling exports could be blamed on the global slowdown. “We cannot blame government for everything. Government is formulating new policies. We have to expand our capacities now,” Sinha said. In India's merchandise exports, the top 20 categories account for four-fifth of the total exports. Even in top export categories like textiles, India is exporting low value commodities such as cotton yarn or apparel rather than technical textiles, say industry experts.
SOURCE: The KNN India
Garment sector stakeholders are upset over the new notification in the Employees Provident Fund Scheme, 1952, that incorporated an amendment which fixed the age limit of 58 years for withdrawing employer’s contribution from the provident fund account. Sakthivel, president of Tirupur Exporters’ Association, said the notification would have a cascading effect on the knitwear cluster when it comes to getting migrant workers.
Notification
“The Union Government should re-examine the notification and the workers should be allowed to get both his and employer’s contribution from the provident fund account when resigns from a particular company”, he added. Entrepreneurs who have brought young women workers for employment in Tirupur knitwear cluster with the assurance that they would be able to get a certain amount from the provident fund before they quit either for marriage or for delivery, have expressed shock over the sudden issuance of the notification. “Another major setback for Tirupur knitwear industry is that many of the present-day owners of the textile units have been workers one day and they used the provident fund as the initial capital for starting their units. “But with the new notification, such an opportunity will be lost”, said R. Nambirajan, director of Network Clothing Company.
SOURCE: The Hindu
Raymond Textiles, a part of fabric manufacturer and apparel maker Raymond Ltd, is targeting a seven-eight per cent growth in its suitings business next fiscal. Suitings refer to fabrics used for making blazers, coats, jackets, suits and trousers. Apart from suitings, the other segments under the textiles division include shirtings (fabrics for making shirts), made-to-measure garments and exports. The growth will come organically, including new product ranges. Over the last one year, the company explored new offerings focussing on functionality. “We are expecting a 7-8 per cent growth in FY-17 mostly from the suitings business. This year, we hope to close at a turnover of around Rs. 2,300 crore,” Ram Bhatnagar, Vice-President, Head Sales & Distribution – Textile, Raymond Ltd, told reporters on the sidelines of the launch of its ‘technosmart’ brand of fabrics. The fabric, Raymond claims, is targeted at corporate travellers with focus on ‘functionality’, which means the fabric will see less creases (wrinkles), UV-protection and so on. Technosmart, he said, is expected to bring in Rs. 100 crore over the next one year. Interestingly, sources claim this focus on functionality has been Raymond’s strategy to beat a slump in the fabrics market. Over the last one year, at least four new sub-brands such as Ibex, Qivuut, Beaver, Cool Wool and so on have been launched. Raymond, currently, has nearly 60 per cent market share in the Rs. 18,000-crore suitings segment and a 90 per cent share in the mid-to-premium range (for fabrics priced upwards of Rs. 600 per metre), Bhatnagar said.
SOURCE: The Hindu Business Line
Madhu Jain known as a textile conservationist and craft revivalist rather than fashion designer to celebrate 29 years of persistent commitment to traditional textiles and handlooms by holding a trade fair in the city Mumbai on April 7. Her latest collection will a line of her new Uzbek-inspired ikkats, alongside a retrospective of her signature Andhra Pradesh and Odisha Ikkats. She has infused the Buddhist Mandala design from the textile traditions of Thailand into the latter. India and Uzbekistan, she says, share much in common when it comes to weaving. The socio-cultural-historical relationship between Uzbekistan and India can be traced back to the 11th century. There, the cotton or silk ikkat coats were often created as robes of honour and as formal gifts. They were worn only by the nobility and rich merchants. The colour palette is rich — reds, golden-yellows and incandescent purples. The word ikkat comes from the Malaysian word 'mengikat', or 'to tie', because the loose threads are tied into bundles using wax-treated cotton to specify where the dye is able to sink in and colour the thread. Ikkat weaving is a mathematical woven wonder, because they are woven with such precision. The weaver has to figure where on the loose threads the dye should (and shouldn't) go, in order for it to form the proper pattern. It's like a logic puzzle, said Jain, whose client list includes Union Cabinet Minister for Women & Child Development Maneka Gandhi and actor Milind Soman.
On the other hand, ikkat from Andhra, produced on pit looms, are used in the preparation of warp and weft. Here, the design sensibility leans towards geometricals. In Odisha, ikkat is inspired by temple motifs and also by nature. So, you will notice parrots, flowers, elephants and deer, Jain said. Jain’s Nakshi Kantha line, for which she worked closely with the Bangladesh Rural Advancement Committee, one of the world's largest NGOs that works at reviving the gossamer-like Dhaka muslin and the intricate art of Nakshi Kantha in 1996. Katha or kantha is a style of hand embroidery that comes from Bolpur-Shantiniketan in West Bengal. Several layers of used or worn out materials such as saris, lungis and dhotis are stitched together to make a single kantha. Kantha needlework is a spontaneous folk expression of personal desire and emotion of the rural woman belonging to different regional, ethnic, and religious groups. Thus, no two kantha pieces are alike. Althought weavers are reluctant to change aeons-old patterns, but today to stay ahead and to save their livelihood they have realized that innovation in design and weave is the key.
SOURCE: Yarns&Fibers
The newly constituted Board of Trade (BoT), a top advisory body on external commerce, is expected to meet on April 6 to discuss on the ways to boost exports. The BoT, which has been reconstituted recently, is expected to deliberate on ways to improve exports in the meeting, an official said. The board is headed by Commerce and Industry Minister Nirmala Sitharaman while the members include Apollo Tyres CMD Onkar Kanwar, Hero MotoCorpBSE 0.62 % MD Pawan Munjal, ICICI Bank Ltd MD and CEO Chanda Kochhar, Biocon MD Kiran Majumdar Shaw, Dr Reddy's MD Satish Reddy, HCL Technologies Chairman Shiv Nadar, Mahindra Group MD Anand Mahindra, ITC Chairman Y C Deveshwar and Ashok LeylandBSE 0.62 % MD R Seshasayee. The 31 ex-officio members include president of chambers like CII and Ficci, chairman of export promotion councils and commodity boards. Secretaries of 13 departments including Revenue, Commerce and External Affairs are official members of the board. The terms of reference of the BoT includes reviewing export performance of various sectors, identify constraints and suggest industry specific measures to optimize export earnings. It also includes advising the government on policy measures for preparation and implementation of both short and long term plans for increasing exports in the light of emerging national and international economic scenarios. Falling for the 15th month in a row, exports dipped 5.66 per cent in February to $20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid global demand.
SOURCE: The Economic Times
As West Bengal is getting deeper into election process, the priority one activity of nation's democratic arena, it is making life tougher for thousands of Indian citizens, the indirect beneficiaries of bilateral trade between Bhutan and Bangladesh. Being landlocked, Bhutan maintains lion's share of its around USD 30 million worth exim with its one of the largest trade partners Bangladesh mainly through Indian land in Dooars region in northern West Bengal. Four major trade points of Bhutan in IndoBhutan border, at northern side of Dooars, are linked with 4 trade gates of Bangladesh at southern side of Dooars in IndoBangladesh border. "Though the issue involves Bhutan and Bangladesh, lion's share of this bilateral trade is handled by Indian agents, transporters or packers in Dooars region. They are also major victims of the situation," said K. Pradhan, a transporter of Indian town Jaigaon, adjacent to Bhutan's largest trade point Phuentsholling. According to him, around 10,000 Indians are indirect beneficiaries of Bhutan Bangladesh trade at different sectors. "Trouble in the connecting routes between these paired BhutanBangladesh tradepoints is a common thing due to political turmoil in the region. But the situation gets further complicated during election time in Bengal," said a leading exporter from Bhutan. "Already the frequency of security checking of vehicles enroute within West Bengal has gone up increasing shipment time significantly. Naturally, trading perishable items has become tougher," he added. In addition "The pace of our trade related paper processing has also gone down at Government offices where election works are now first priority. Next, transporters will start facing shortage of vehicles due to large scale seizure including trucks from road for election duties. That will further increase our trouble," said D. Mandal, a shipment agent. However, when asked, a senior administrative official, reluctant to speak on the issue said, "Things may cause some temporary small inconveniences for few people. But we must fulfill our election related duties flawlessly. We are trying to keep things as hassle free as possible for everyone."
SOURCE: The Economic Times
Prime Minister Narendra Modi is expected to raise the issue of increasing non-tariff barriers on Indian exports to European markets during his summit-level meetings with European Commission President Jean-Claude Juncker and European Council President Donald Tusk. “This is an issue that has been bothering India for quite some time now. This issue has impacted Indian exports to that market, especially from sectors such as pharmaceuticals, engineering and electronics,” a top official told BusinessLine. This will be Modi’s maiden visit to Brussels. He will be attending the 13th India-EU Summit on March 30 and discuss a wide range of bilateral issues. The EU’s imposition of several non-tariff barriers such as stringent trademark norms, labelling, usage of logos on consignments, sanitary and phytosanitary measures on Indian shipments, especially on generic drug exports, have made a dent on bilateral ties for almost a decade now, the official said. “EU seizing India’s consignments, even in transit through their borders, has become a common practice. Both sides now have to find a mechanism to put an end to this,” the official added.
Discussions will also be held on the resumption of negotiations on the India-EU Broadbased Trade and Investment Agreement (BTIA), increasing investments and expansion of strategic partnership. Meanwhile, during a press conference on Monday, Nandini Singla, Joint Secretary (Europe West), at the Ministry of External Affairs said that after the India-EU Summit both sides will release a document that will lay down a roadmap on the future strategy for India-EU trade and business ties. Indian exports have been plummeting steadily for the last 15 months, mainly on account of weaker demand in Europe, which is its largest trading partner.
Other stops
On March 31 Modi will be attending the Nuclear Summit in Washington DC. “The summit will help bolster nuclear cooperation among countries,” said Amandeep Singh Gill, Joint Secretary (Disarmament and International Security Affairs), Ministry of External Affairs. The Prime Minister will conclude his three-nation tour with a visit to Riyadh on April 2-3, where he will seek to strengthen energy ties with India. He will also visit the premises of Indian firms, including TCS and L&T, operating there.
SOURCE: The Hindu Business line
The key labour reform proposals closely linked to Prime Minister Narendra Modi’s ‘Make in India’ initiative are not likely to be implemented anytime soon, sources in the labour ministry said. This is because the code on industrial relations, which is considered the main law on which the other labour reforms are dependent, is yet to be sent for approval of the Cabinet. It can be tabled in Parliament only after the Cabinet’s nod. The code on industrial relations makes it tougher to form trade unions and prohibits politicians from becoming union leaders in organised sector establishments. It also proposes to allow employers with up to 300 workers to go for retrenchment, lay-off and closure without government permission from the current 100 employees. Labour ministry officials remain tightlipped when asked whether the code on industrial relations has any chance of being put up for passage in the second leg of the Budget session that starts on April 25. The code on wages, which would allow states to fix minimum wages and make national wage mandatory, however, has been sent for the Cabinet’s approval, sources said, adding that the Small Factories Bill has also been sent for the nod of the government’s highest decision-making body.
The Cabinet note for Employees’ Provident Fund & Miscellaneous Provisions Bill is yet to be circulated and is still being vetted by the law ministry. The EPF Bill seeks to provide subscribers of the retirement fund body an option of choosing between EPF and the New Pension System (NPS). In the winter session, the Payment of Bonus (Amendment) Bill, 2015 was passed that enhances pay eligibility limit of an employee for bonus to `21,000 per month from `10,000, and the monthly bonus calculation ceiling to `7,000 per month from `3,500 a month earlier. Immediately after taking over, the new government had itemised labour reforms as an important agenda. It decided to do away with some of the 44 extant central labour laws or merge them, with just four codes aimed at ensuring ease of doing business, where India ranks poorly in the world. The proposed reforms are tipped to be the biggest labour reforms since Independence.
SOURCE: The Financial Express
Justifying slashing of interest rate on small saving instruments like PPF, Finance Minister Arun Jaitley today said interest rates in India are "extraordinarily" high and the country risks becoming the most sluggish economy if lending rates continue to rule high. The existing taxfree interest rate of up to 8.7 per cent on small saving instruments translates into an effective interest of 1213 per cent on deposits. Correspondingly, the lending rate, which is always a notch above deposits rate, would be 1415 per cent, he told PTI in an interview here. "On small savings, India's interest rates are extraordinarily high. And high interest rate prevents growth," he said. Citing the example of 8.7 per cent tax free interest on Public Provident Fund (PPF) investments, he said this translates into an interest rate of 12.5 per cent or 13 per cent including tax benefit. "Where in the world you get 12.5 per cent return of interest? So if deposit rates become 12.5 per cent, then what should lending rates be, 14 to 15 per cent? You will become the most sluggish economy in the world, if lending rates are 14 to 15 per cent," he said. Jaitley said no country can have "a system where lending rates are low but deposit rates are high. The two are interlinked". The government had on March 18 announced cut in interest rate on PPF to 8.1 per cent, on Kisan Vikas Patra (KVP) to 7.8 per cent from 8.7 per cent, on girlchild saving, Sukanya Samriddhi Account to 8.6 per cent from 9.2 per cent and senior citizen savings scheme to 8.6 per cent from 9.3 per cent with effect from April 1.
Asked whether the government had taken an unpopular decision, Finance Minister said, "It would be most unpopular decision if India's lending rates were 14 to 15 per cent. To destroy India's economy would be the most unpopular thing to do. Low interest rate in the long run will help everybody." When a borrower goes to bank for availing home loan, "he should get it at 9 per cent or 15 per cent? Which decision will be unpopular", he asked. Jaitley said India must have multiple products, giving a range of interest rates. "Even at 8.1 per cent rate is a very good rate of returns, much better than you get anywhere in the world because it is tax free. 8.1 per cent tax free is 12.2 per cent. It's not a small rate of interest. The government, he said, has to create a mechanism where interest rate become more reasonable and those are transmitted by the banks. "And also don't forget, the additional argument that you earned 8.7 per cent when inflation was at 11 per cent. When inflation is below 5 per cent, so actually the real rate of interest has gone up," he said. Jaitley said the move to tax 60 per cent of withdrawals from Employees Provident Fund.
(EPF) was aimed at discouraging people from making lump sum withdrawals and spending all the money and it was instead aimed at encouraging them to invest in taxfree pension plans to make India a pensioned society. The proposal was however withdrawal after widespread criticism. "As India is growing, standards of social security have to increase. And one important component of social security is to make India into a pensioned society," he said. He said the original proposal to tax withdrawals from EPF was to converge Employees Provident Fund Organisation (EPFO) and National Pension Scheme (NPS) "into a system where you contribute during your earning period, you get a tax rebate (and) when you retire, you get a big lump sum for your social commitments, tax free and the rest becomes an annuity, the 60 per cent becomes an annuity, which is also tax free." "The inheritance to your heirs will also be tax free. The only change I made was to discourage people from spending this entire amount in one go. So if you want to spend the entire amount in one go, as a disincentive you pay tax on the 60 per cent (of it)," he said. While EPF withdrawals have been made taxfree, the same has now been extended to NPS as well. "And I do believe that more and more people should continue to switch over to NPS, which means its a system like in any developed country where during your earning career, you contribute, upon retirement you get a lump sum and then you get a monthly pension. "I do believe retired people should take care of their monthly pension, to that extent I have no regret even about the EPF scheme," he said. The minister said many people have told him that it was actually a good scheme. "After a year I will disclose of how many people have switched over to NPS. And mind you, NPS gives the best returns as compared to any government scheme does," he said.
SOURCE: The Economic Times
The Aam Aadmi Party government on Monday presented a "tax-free" budget and rationalised the VAT structure which may reduce the cost of products such as readymade garments, shoes, watches and electric and hybrid vehicles in the national capital. Deputy chief minister Manish Sisodia presented a Rs 46,600 crore annual budget for 2016-17, pegging plan outlay at Rs 20,600 crore. Expectedly, education, health and transport sectors got the lion's share of the total allocation. The budget also proposed to provide drinking water to all authorized and unauthorized colonies by December 2017 through pipelines. Sisodia set aside an amount of Rs 676 crore in this regard. Rs 10,690 crore was earmarked for education, a rise of 8.68 per cent over last year. Of this, Rs 4,645 crore is for plan expenditure (23 per cent), highest among all the heads. "21 new school buildings have been constructed while 8,000 new classrooms are being built. It equals to the infrastructure of 200 schools. Every classroom will have CCTV cameras installed for which Rs 100 crore has been set aside," Sisodia said. "The government is committed to reducing tax arbitrage and will attempt to keep a uniform rate with neighbouring states. In several items such as sweets - namkeen, watches, readymade garments, lower tax rate in neighbouring states was causing erosion in the same. We have made efforts to remove such imbalances in our VAT structure," he said.
Elaborating on its three-tier public health roadmap, the government allotted Rs 5,250 crore which forms 16 per cent of the total expenditure, against last year's allocation of Rs 4787 crore. The transport sector emerged as another priority area with around Rs 1,735 crore being allocated. Rs 10 crore has been alloted for the construction of Aam Aadmi Canteens. This man should become the PM. He will run the country professionally and reduce tax burdens of people. Really he is thr man to take India forward into the future. Rs 1,068 crore has been alloted to the area of women safety, security and empowerment and a plan outlay of Rs 1,381 crore for social security and welfare schemes. Extending the Mohalla Sabha Scheme to all the Constituencies, Sisodia announced Rs 350 crore allocation in 2016-17 for the Citizen Local Area Development (CLAD) scheme.
SOURCE: The Times of India
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$ 37.10 per barrel (bbl) on 25.03.2016. This was lower than the price of US$ 38.15 per bbl on 23.03.2016.
In rupee terms, the price of Indian Basket decreased to Rs 2480.63 per bbl on 25.03.2016 as compared to Rs 2550.80 per bbl on 23.03.2016. Rupee closed at Rs 66.86 per US$ on 23.03.2016. (RBI reference rate for 24.03.2016 and 25.03.2016 are not available. Therefore, reference rate of 23.03.2016 has been considered.) The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 25, 2016 (Previous trading day i.e. 23.03.2016) |
Pricing Fortnight for 16.03.2016 (26 Feb to 11 Mar, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
37.10* (38.15) |
34.82 |
|
(Rs/bbl |
2480.63 (2550.80) |
2356.62 |
|
|
Exchange Rate |
(Rs/$) |
66.86 |
67.68 |
SOURCE: PIB
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT) have inked a Memorandum of Understanding (MoU) to promote and expand cooperation between Pakistan and Chinese textile and apparel companies. The MoU signing ceremony was held during China Asia Textile Forum 2016 in Shanghai on Monday. PRGMEA Chief Coordinator Ijaz Khokhar inked the MoU on behalf of Pakistan Readymade Garments Manufacturers & Exporters Association while China Chamber of Commerce for Import and Export of Textile and Apparel was represented by its Chairman Jiang Hui. Ijaz Khokhar, who was the guest speaker from the Pakistan side also made presentation on Pakistan’ textile and apparel sector on the occasion of China Asia Textile Forum. The forum was attended by major apparel associations and many leading Chinese garment companies. It is the first time that a Pakistani garment sector body signed such an agreement with the overseas stakeholders for strengthening mutual trade of garment and textile. As per the MoU, PRGMEA will provide visa assistance to Chinese companies through invitation letters.
In the first phase, CCCT delegation is visiting Pakistan to attend Texpo Fair being held for the first time in Pakistan from April 7 to 10. PRGMEA will arrange factory visits for Chinese delegation, and B2B meetings with its members. PRGMEA also plans to arrange a trade delegation to visit China by the end of this year. It is expected that Chinese companies will establish their units at CPEC Economic zones through joint ventures of the local companies, with PRGMEA playing leading role after striking this deal with CCCT. PRGMEA and CCCT have also agreed to deal with managing business contacts, seminars, business meetings, presentations, exhibitions, fairs holdings and other arrangements to make potential partners and export possibilities available in the two countries. The PRGMEA and CCCT will assist each other in small and medium size business development, provide technical assistance, search for partners for trade and joint ventures, as well as render other services of interest for business entities of both parties. In his presentation, PRGMEA chief coordinator Ijaz Khokhar, highlighted the overall situation and development trend of Pakistan’s garment sector and textile industry. He said that CCCT as part of the Ministry of Commerce is the largest textile and apparel trade agency both in China and the world. CCCT member companies, totaling more than 12,000 and operating in 34 provinces across the country, engage in the production and export and import of textile fibers, yarns, fabrics, clothing, home textiles, industrial textiles and accessories. Its member companies comprise the majority of Chinese textile and apparel enterprises incorporating export and import enterprises, the trade volume of which accounts for 70% of the total export and import volume of Chinese textile and apparel industry as a whole. Ijaz Khokhar said that China is not a traditional market and can offer a lot of opportunities for Pakistani merchandise. He said that MoU between the PRGMEA and CCCT would go a long way and help Pakistani value-added garments goods to find their way in the Chinese market.
SOURCE: The Pakistan Today
The Trans-Pacific Partnership (TPP) is hoped to bring more opportunities for Vietnam’s textile and garment sector in expanding markets and export, however, enterprises and policy-makers must quickly remove current obstacles as well as have synchronous measures. According to the Vietnam Textile and Apparel Association (VITAS)’s figure, turnover of textile and garment reached US$27 billion in 2015 yet the value of import was quite great and the sector still imported much Chinese commodities. After Vietnam joins the TPP, the tax will be gradually reduced to 0%. With the original rules encouraging the use of the materials from the TPP block, in the long term, Vietnam will invest in the production of materials, specifically fibers and dyes. Importantly, the textile and garment industry will have more opportunities to build an auxiliary sector for itself. When Vietnam becomes a TPP member, it will be in the same block with the United States and the American consumers will get benefits because Vietnamese garment exports will enjoy a preferential tax rate. The current problem is that the textile and garment industry of Vietnam still largely depends on imported materials and accessories. VITAS Deputy Chairwoman of the Vietnam Textile and Apparel Association (Vitas) Dang Phuong Dung said that Vietnam had not exploited much on tax incentive. Moreover, most common challenges in the sector are market, technique and waste treatment methodologies. In addition, local governments of the southern provinces of Vung Tau, Dong Nai and Binh Duong refused to open door for foreign textile enterprises though Vietnam is trying to attract foreign direct investment (FDI). Furthermore, Vietnamese textile companies should increase its value by paying more attention to design because many fashion shows have been held individually showing a loose combination between textile companies and designers. Most of all, enterprises should focus on building its brand names and developing distribution networks.
Meantime, KPMG Vietnam Company Deputy General Director Nguyen Cong Ai said that most Vietnamese textile companies do outwork (processing) following overseas companies’ orders hence to get low profits. Meanwhile TPP requires textile companies themselves make production materials not import commodities from nations which are not TPPs members. Currently, domestically-made materials just meet 40-50 percent of the demand. Chairman of Garmex Sai Gon Company’s Managing Board Le Quang Hung said that as per the international organizations, Vietnamese textile and garment will reach US$30 billion by 2010 and US$50 billion by 2050 only when material suppliers can develop equally. He stressed the need of incentives for those operating in the supporting industry or else the above-mentioned forecast will not come true. In addition, the investment in supporting industry will help enterprises to increase competitiveness and actively control production quality. The government can help by asking related agencies to analyze products for export from which to forecast demand of every material for future manufacturing, said Mr. Hung.
SOURCE: The Saigon Daily
Even as Vietnam's textile industry seeks to derive the maximum advantage from the Trans Pacific Partnership (TPP), the sector is grappling with low labour productivity and a serious shortage of textile and dyeing materials. According to one estimate, the dyeing sector needs a massive investment of $15 billion. Le Tien Truong, general director of the Vietnam Textile and Garment Group (Vinatex) pointed out that in 2015, Vietnam exported $27.5 billion of garment-textile products but it had to spend $14 billion to import raw materials. “Thus, Vietnam needs to overcome the problem of input raw materials," Truong said at a seminar on Vietnam's garment industry at Ho Chi Minh City. The Vinatex CEO also highlighted the massive difference in investments in different branches of the textile industry in Vietnam. He pointed out that only $3,000 is needed to invest in a position of garment worker (people and technology) but up to $200,000 for a fibre or dye worker. That makes it extremely difficult for small and medium enterprises to invest in the textile and dyeing industry. Vietnam needs up to $15 billion of investment in the industry, he said. "This figure is really a challenge for local businesses. So when the market opens, the arrival of foreign investors is unavoidable. So, to ensure healthy competition, the State needs to manage the market properly, with strict legal institutions in both technology and environmental protection,” Truong said. He also urged local businesses to work closely together to create an overall value chain.Professor Hansjörg Herr from the Berlin School of Economics said Vietnam should create an environment for coordination between the authorities and enterprises to enable enterprises to have quick access to creative economy.
SOURCE: Fibre2fashion
Many textile & garment companies are leaving the market because of the state’s unstable policies,” said Truong Van Cam, deputy secretary general of the Vietnam Textile and Apparel Association (Vitas) at a workshop held by the World Bank (WB) and the Vietnam Chamber of Commerce and Industry (VCCI). “A garment company wanted to import a printer to make products for export and it took the company’s owner six months to obtain the import license,” he said, citing an example to show how current policies cause difficulties for enterprises. “This was because the Decree 60 stipulated that business owners must have junior college’s degree to be able to import printers,” he said on Thoi Bao Kinh Te Saigon. A business in Nam Dinh province, which employs 2,000 workers, said it has to pay VND40-50 billion additionally every month because of the required higher minimum wage and trade union fee. “The State’s policies need to be designed in a way to encourage investors to do business and stay in the market,” he commented.
An analyst said that the government seems to be too optimistic about opportunities to be brought to the textile and garment sector by TPP. He said in 2015, Vietnam exported $27 billion worth of textile and garment products, 60 percent of which went to TPP member countries. However, foreign invested enterprises (FIEs) pocketed most of the money. He went on to say that with the TPP’s strict requirements on origin of products, Vietnam would not be able to get benefits from TPP. “Vietnam imports 10 percent of yarn and 5.3 percent of cloth from TPP countries. This means that it imports most of materials needed from non-TPP countries. Meanwhile, the products with non-TPP origin won’t be able to enjoy preferential tariffs,” he explained. Pham Xuan Hong, chair of the HCMC Textile, Garment, Knitting and Embroidery Association, also said on Nguoi Lao Dong that the profits earned by Vietnamese enterprises are modest because they mostly do outsourcing for foreign partners, while 60-70 percent of materials needed are imports, mostly from China. A report showed that Vietnam now has 6,000 textile & garment companies, of which garment companies account for 70 percent. Of the number, only 17 percent are textile enterprises, 6 percent spinning, 4 percent dying enterprises and 3 percent makers of input materials and accessories. Seventy percent of enterprises now make products under the mode of cutting – assembling – trimming. This means that Vietnamese are proficient in the last phases of the production chain, but less so in dyeing and weaving.
SOURCE: VietNamNet.
The National Federation of Thai Textile Industries has reported that Japanese investors are keenly interested in new investments that would result in manufacture of innovative products, such as medical textiles in Thailand. The Federation chairman, Somsak Srisuponvanit has confirmed that the partnership proposed between Thai companies and their Japanese counterparts with high technological capabilities, would make Thailand the regional hub of medical equipment and special textiles needed for the healthcare sector. Srisuponvanit feels that the new investment promotion policy of the Government, based on clusters, would lift the Thai industries to next level with specific focus on product innovation that adds value. Under the new policy, the textile sector would shift to value added products, such as disinfected bed sheets used in hospitals. The Federation has discussed various ideas with the Japanese firms as well as the ministry concerned. As the competition has become intense in lower market for textiles, due to the cost advantage enjoyed by low wage countries such as Vietnam and Myanmar, Thailand is planning to enter upper market with its advantage of innovation, as well as the limited number of rivals in this market. Apart from the emerging partnership with Japanese firms, the Thai garment sector is also looking for partnership with Sri Lankan companies. Recently Lankan authorities helped 25 garment firms from that country, to meet their counterparts in Thailand, to promote new investments. As Thailand is emerging as Centre of Asean, with surging demand for textiles, Sri Lanka is keen on exploring this opportunity.
SOURCE: The EThailand
