Shri Piyush Goyal, India’s Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution and Textiles and The Hon Dan Tehan MP, Minister for Trade, Tourism and Investment, Government of Australia have announced reaching an understanding on the Interim agreement and finalizing it in the next 30 days. The IndiaAustralia Comprehensive Economic Cooperation Agreement (CECA) is expected to be concluded in 12 months thereafter. Shri Goyal and Mr. Tehan were addressing a joint press conference after conclusion of the 3-day talks in New Delhi today. Speaking on the occasion Shri Goyal recalled watching the classic movie ‘Dil Chahta Hai’, which was partially shot in Australia, and portrayed a strong bond of friendship among friends. He said expanding India-Australia relationship also exhibits a similar strong bond. CECA FTA is like a ‘Dil Chahta Hai FTA’, which represents the hope, aspiration & ambition of the people of our two great nations. The two nations are expected to sign the Interim Agreement in March 2022.The areas covered under the interim agreement should include goods, services, rules of origin, sanitary and phytosanitary measures, Customs procedure, and Legal and Institutional issues. Speaking on the occasion, Shri Piyush Goyal said that he had very fruitful discussions with his Australian counterpart and significant progress has been made in advancing the FTA between the two nations. Shri Goyal said that India and Australia were natural partners and complemented each other in a variety of ways. The Minister said that discussions between the two nations happened with openness and concern and sensitivity for the issues on both sides. Terming the negotiations as a watershed moment in India-Australia bilateral relationship, Shri Goyal expressed his gratitude to the Prime Ministers of both nations, Shri Narendra Modi and The Hon Scott Morrison for their leadership, guidance and support. He also complimented officers from both sides who worked proactively to build a comprehensive economic partnership which will be a win-win for both, opening up huge opportunities for people of India and Australia. The Minister exhorted that India and Australia are linked by the great Indian Ocean; connected by history, shared inheritances and deeply interlinked destinies. The CECA would be a substantial opportunity for both of economies and a significant moment in the India-Australia bilateral relationship. Both Ministers agreed on the need for a balanced trade agreement that encourages expanded trade and investment flows to the benefit of both of the economies, and reflects a shared commitment to the rules-based international trading system. Ministers also agreed to expeditiously resolve tax-related issues faced by Indian software firms in Australia. Responding to a question, Shri Goyal said that Quad has brought the four countries, viz. USA, India, Australia and Japan closer and this had also enabled India and Australia to come closer to each other in economic relations as well. Mr. Dan Tehan also announced that on 21st February, Australia would be open to travelers from all over the world and extended his invitation to Indians to visit Australia. The Minister opined that as a result of MoU, the tourism flows between the two countries will continue to grow and that the education relationship between the two nations would also flourish. We are looking at mutual recognition of qualifications in Australia so that students can now study in both nations, he said. Mr. Tehan expressed confidence that the interim agreement would be a significant milestone in relationship between our two countries. He said that the warmth of the relationship between the two nations and the honesty and transparency with which the negotiations happened would certainly help build a very strong and robust economic ties.
Source: PIB
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal has said technology can play a very big role in taking prosperity to the remotest corners of India. Technology, he said, can really help us democratize basic amenities, such as Healthcare through Telemedicine, Education through EdTech. “For example, why are we making the ONDC, the Open Network for Digital Commerce? The idea is that the small retailers should be protected also. We are OK with the large eCommerce also contributing to the nation’s economy and working their way through. But should the small retailers be allowed to become extinct like in the Western world, where Mom & Pop stores are almost gone or should we not protect livelihoods,” said Shri Goyal, interacting with students after addressing the Policy Conclave 2022 today, organised by IIT Kanpur. Shri Goyal said the Prime Minister Shri Narendra Modi, thinking about the welfare of 135 crore citizens, has given us a vision for India @2047, which is called the Amrit Kaal. “Unless you have ambitious targets, unless you dream big, unless you have significantly large hopes, aspirations, desires, you can never achieve greatness. There was a time when our population was considered a curse, but Prime Minister Modi has converted that entire thinking to talking about our young population as our biggest strength. Our demographic dividend gives us huge opportunities, opens the doors to a very bright future for the country! And therefore we need a holistic vision which envisions growth in all sectors, makes it easier to do business, promotes innovation, research, development, modernity and yet also respects family values, our culture, makes it easier to live, that we call Ease of Living for every single citizen,” he said earlier during his address. Shri Goyal said India’s tryst with destiny must not merely remain a wishful rendezvous but must transform into prosperity, progress & development. “And in that journey, IITKanpur and all the IITs will be at the forefront, I have no doubt in that,” he said. Shri Goyal gave a Five Point Action Plan for IIT students to unleash India’s golden era: • In all your ventures, make Scale, Quality, & Job Creation the focal point • Provide innovative solutions for farmers, artisans & weavers, small retailers, etc & help realise the goals of Aatmanirbhar Bharat & Make in India for the World • Study digital platforms (e.g. Single Window, PM GatiShakti, ONDC) & give ideas to enhance facilities • Help set the agenda/themes for India’s G20 presidency starting in Dec’22 • Make Seva & Samarpan your guiding philosophy & give back to the nation Shri Goyal said IIT-K is the pride of India and the world from being the 1st institute in India to offer Computer Science stream to being home to distinguished alumni like Mr. Narayana Murthy (Founder, Infosys), Arvind Krishna (CEO, IBM) & Mukesh Bansal (Founder, Myntra & CEO Cure.fit) to name a few. Shri Goyal said the Satellite city of Kanpur is rich in history and culture. “From inspiring Maharishi Valmiki to write ‘The Ramayana’ to creating world class engineers, Kanpur is integral to India’s progress,” he said.
Source: PIB
Due to the gradual decrease in the impact of Covid-19’s third wave, the textile demand is expected to speed up in FY23 as per the India Ratings and Research (Ind-Ra). Reduction in logistics problems for export demand will help in maintaining vigorous demand, said the rating agency. After seeing a slight dip in 1QFY22, the domestic demand for all the textile sub-sectors has continued to improve from 2QFY22, which also increased the realisation along with the increased demand momentum and supply chain issues, were the key findings Moreover, it said that demand for MMF (man-made fibre) has continued to increase, mainly due to the rise in cotton prices, leading to a shift of demand from cotton to MMF, to an extent. It also highlighted that due to improved consumer spending the demand momentum sustained for home textiles in the domestic market. With regards to textile exporters in the cotton yarn segment continued to witness an improvement during 7MFY22 with volumes exceeding 47 per cent YoY over FY21, the agency cited. In view of an increasing demand for Indian yarn, the rating firm expects export volumes to remain higher for FY22 over FY20 and FY21.
Source: KNN India
"FM Smt @nsitharaman (Nirmala Sitharaman) and Minister Mr @DanTehanWannon (Dan Tehan) highlighted the importance of an early resolution of ongoing issue of taxation of off-shore income of Indian firms in Australia," the Ministry of Finance said in a tweet. Union Finance Minister Nirmala Sitharaman on Friday met Australian Minister of Trade, Tourism and Investment Dan Tehan and called for early resolution of taxation issues faced by the Indian firms in Australia. "FM Smt @nsitharaman (Nirmala Sitharaman) and Minister Mr @DanTehanWannon (Dan Tehan) highlighted the importance of an early resolution of ongoing issue of taxation of off-shore income of Indian firms in Australia," the Ministry of Finance said in a tweet. During the meeting, the two leaders "acknowledged the noteworthy development between India-Australia ties which have seen an upward trajectory over the past few years. "Both, India and Australia, attach great importance to the wide-ranging engagements by the two sides," the Finance Ministry said.
Source: Economic Times
In absolute terms, the general index level of the Index of Industrial Production (IIP) was higher than pre-pandemic levels seen in December 2019, but experts cautioned that the full impact of the restrictions in view of the Omicron variant of the Covid-19 pandemic may get reflected in the industrial output data next month. Industrial output slumped to a 10-month low of 0.4 per cent in December, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released Friday by the National Statistical Office (NSO). In absolute terms, the general index level of the Index of Industrial Production (IIP) was higher than pre-pandemic levels seen in December 2019, but experts cautioned that the full impact of the restrictions in view of the Omicron variant of the Covid-19 pandemic may get reflected in the industrial output data next month. The IIP had registered a growth of 1.3 per cent a month ago and 2.2 per cent in December 2020. The biggest drag for the industrial output in December came from the 0.1 per cent contraction in manufacturing output, which accounts for 77.6 per cent of the weight of the IIP. Manufacturing output had grown 0.8 per cent in the previous month and 2.7 per cent a year ago. Wait until March IIP growth in Dec 2021 is the lowest in 10 months, with manufacturing continuing to be a major drag. The full impact of the recent curbs may get reflected only in the industrial output data next month. Weak consumption and investment also weighed on the industrial output. Capital goods, an indicator of investment, contracted 4.6 per cent in December as against a contraction of 2.0 per cent a month ago and 2.2 per cent growth a year ago. Consumer durables output contracted 2.7 per cent in December as against 5.4 per cent contraction a month ago and 6.5 per cent growth a year ago, while consumer non-durables output contracted 0.6 per cent compared with 0.5 per cent growth a month ago and 1.9 per cent growth a year ago. Mining output grew 2.6 per cent in December as against a growth of 4.9 per cent a month ago and 3 per cent contraction a year ago. Electricity output recorded a growth of 2.8 per cent in December compared with 2.1 per cent a month ago and 5.1 per cent a year ago. During April-December this fiscal, the IIP grew 15.2 per cent against a 13.3 per cent contraction in the same period last year. “The short-lived Omicron wave and mobility restrictions could impair industrial output further in January. However, rapid control of new infections, and the removal of activity curbs means the economic recovery could resume from February onward,” Rahul Bajoria, Chief India Economist, Barclays said. Successive monthly data of industrial output is making it abundantly clear that consumption demand will need policy makers’ attention much more than hitherto being given if recovery is to become a sustainable one, India Ratings said. “Also the continued weakness in capital goods does not augur well. Although there are indications that finally private corporate investment is picking up but the same has yet to find a reflection in the IIP data,” Sunil Kumar Sinha, Principal Economist, India Ratings and Research said. Economists said the weakness in industrial output on the back of contraction in capital goods, consumer durables and consumer non-durables add heft to the MPC’s decision to remain growth supportive in light of the incomplete recovery. “Capital goods contracted in YoY terms, as well as relative to the pre-Covid level, highlighting the tentativeness in the investment cycle. In line with our expectation, the recent RBI release indicates a capacity utilisation of 68% in Q2 FY2022, which we expect will improve to 71-72% in the ongoing quarter despite the third wave, but not be enough to trigger a pickup in the private capex cycle,” Aditi Nayar, Chief Economist, ICRA said. The Reserve Bank of India, in its monetary policy Thursday, had kept the key policy rates unchanged citing “an accommodative stance as long as necessary to revive and sustain growth on a durable basis” and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.
Source: Indian Express
Stating that Andhra Pradesh is blessed with abundant natural resources, mineral wealth, industries minister Mekapati Gautham Reddy has said that the state offers a low-risk and easy environment for businesses to grow. He said that AP is best destination to invest in any sector as the state government is offering one of the best industry friendly policies in the country. Mekapati along with UAE minister of state for foreign trade, Dr Thani Bin Ahmed Al Zeyoudi and UAE Ambassador to India, Dr Ahmed Abdul Rahman Albanna inaugurated AP stall at Dubai Expo on Friday. AP has set up a dedicated stall in India floor at the expo by highlighting various advantages in investing in AP. Speaking on the occasion, Mekapati said that India and UAE share a rich history together and our relationship extends across many centuries. “Chief minister YS Jagan Mohan Reddy is re-defining governance by delivering public services through village and ward secretariats, doorstep delivery of civil supplies, Rythu Bharosa Kendra (One stop solution for farmers) and more such forward looking initiatives,” said Mekapati. He said that Andhra Pradesh has strong governance, strategic locational advantages, robust infrastructure, thriving industrial and business ecosystem, skilled manpower, and the immense potential for growth across sectors. Minister said that AP is a leader in agricultural, horticulture, dairy and seafood production. He said that AP second in freshwater fish production with 35 lakh tonnes of fish which includes 28 lakh inland fish. Minister said that AP is largest producer of shrimp among coastal states with 4 lakh tonnes produced from which 2.55 lakh tonnes of it was exported. He said that state is top in Egg production with 5 crore eggs production per day and second in meat production in the country as its production touched 443 thousand metric tons of poultry meat per year. He said that AP is third in milk production with 6 lakh litres per day. "State has enormous potential for investment in Electric Mobility, Battery manufacturing, Electronics manufacturing, Emerging technologies in IT, Technical Textiles, Pharmaceuticals, Petrochemicals and Food processing among others,” said Mekapati. Indian ambassador Dr. Sunjay Sudhir, advisor to CM and Special representative to Middle East and Far east, Zulfi Ravdjee, APIIC chairman M. Govinda Reddy, MLA Abdul Hafeez Khan and APEDB CEO JVN Subramanyam were also present.
Source: Times of India
MSMEs suffered as a result of the pandemic. To address the challenges, the MSME ministry has launched a slew of initiatives aimed at boosting MSMEs’ growth. According to a survey report presented in parliament by MSME Minister Narayan Rane, two-thirds of Micro, Small and Medium Enterprises (MSMEs), or 67 per cent, in India were temporarily closed for three months or more in FY21, and more than half of all MSMEs saw a revenue decline of more than 25 per cent. This report was created by the Small Industries Development Bank of India (SIDBI) after surveying 1,029 businesses. Following that, Minister Rane outnumbered a few recent initiatives under the Aatma Nirbhar Bharat Abhiyan to mitigate the negative impact of Covid-19 on the country’s small businesses and improve their financial and market access. The initiatives include: Rs. 20,000 crores Subordinate Debt for stressed MSMEs. Rs.3 lakh crores Emergency Credit Line Guarantee Scheme (ECLGS) for Businesses, including MSMEs (which has subsequently been increased to Rs. 5 lakh crore, as announced in Budget 2022-23). Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund. New Revised criteria of classification of MSMEs. New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business and, No global tenders for procurement up to Rs. 200 crores. Sequentially, to support the MSMEs during the pandemic, a special component of “Virtual Trade Fairs” has been introduced under the existing Procurement & Marketing Support (PMS) scheme of this Ministry to enhance market access of MSMEs. Also, from 2nd July 2021, the government has included Retail and Wholesale Traders as MSMEs. They are allowed to be registered on the Udyam Registration Portal and avail benefits of Priority Sector Lending. Additionally, to support MSMEs reach out to customers across the world, the Ministry is implementing the International Cooperation Scheme (IC) facilitating the participation of the MSMEs in International Exhibitions, Trade Fairs, Buyer-seller meets, etc. MSMEs through their Development Institutes (DIs) situated in all States, facilitate MSMEs to export from Domestic Tariff Area (DTA) and Special Economic Zones (SEZ). 52 Export Facilitation Centres (EFCs) have been established to provide hand-holding support to MSMEs as well as creating linkages with Export Promotion Councils, Commodity Boards, etc, for this purpose. Further, a comprehensive B2B Portal- MSME mart.com is being operated by the National Small Industries Corporation (NSIC) as a one-stop digital solution to all business needs of MSMEs and provide next-generation services to MSMEs to make them competitive in the global market. The Ministry has also established Enterprise Development Centres (EDCs) to build a network of entrepreneurial leaders by providing professional mentoring and handholding support services to existing as well as aspiring entrepreneurs. So far, 102 EDCs have been established all across the country. Additionally, various other schemes are being implemented by the Ministry to help MSMEs expand their business in the global market by providing them assistance for technology up-gradation, skill development, quality certification etc. Besides, the Directorate General of Foreign Trade (DGFT) is implementing schemes like the Niryat Bandhu Scheme (NBS) for mentoring new and potential entrepreneurs about the intricacies of foreign trade. India has over 6.3 crore MSMEs, according to data from the MSME Ministry, as of November 26, 2021, the Udyam Registration portal registered 5,767,734 MSMEs, replacing the former process of filing for a Udyog Aadhaar Memorandum (UAM). (Source: IBEF) The Government of India has envisioned doubling the Indian economy to US$ 5 trillion in five years. To achieve these targets, the government should invest in providing more back-end services to improve the performance of the MSME sector as it supplies goods and services to big industrial enterprises.
Source: SME Futures,
The government has already held industry consultations to set goals for 2024, 2030 and 2047 and identify focal points in technology, sunrise and futuristic areas. The sectoral groups of secretaries on Vision India @2047 will present their plans to the cabinet secretary later this week and share their strategies to make India a leading player across products and services by the country's 100th year of Independence. The government has already held industry consultations to set goals for 2024, 2030 and 2047 and identify focal points in technology, sunrise and futuristic areas. "The groups will present their plans to the cabinet secretary this week. One group has suggested ways of making India a $40 trillion economy by 2047," said a government official. The government had set up some sectoral groups of secretaries to finalise the blueprint for the plan. India's nominal gross domestic product in FY22 is estimated at Rs 232.1 lakh crore, just over $3.1 trillion, well short of $5 trillion by FY25. The ministries of commerce and industry, and textiles have discussed with exporters and industry benchmarking India's regulations and key socio-economic indicators across all sectors to international standards, and a gap analysis between domestic and advanced international capabilities. "We have discussed ways to develop both private and public Indian companies as global leaders by improving competitiveness and capacity," said a textile industry representative. As per another industry representative, the intent of the exercise is to brainstorm and ideate ways to develop institutional expertise including government process re-engineering, and propose a framework to position India as a leader in such a sector within a decade. One such aim is to become energy-independent by 2047. The groups' strategies also touch upon devising systems for institutional collaboration with foreign governments, international agencies and institutions in the field of technology. "We have been asked to chalk out a roadmap to develop academic and research institutions, think tanks and companies as global leaders," said a representative of an export promotion council. Similar industry consultations have been done by the tourism ministry.
Source: Economic Times
Indonesia’s PT Asia Pacific Fibers Tbk, a leading integrated global polyester player has become the first manufacturer in Indonesia to have achieved the UV STANDARD 801 certification considering its polyester woven fabric for awnings. Expert in polyester production, it can cater to the ever-changing demands in apparel, furnishing and industrial textiles. This achievement provides high confidence to compete in the global market for the best awnings with the beneficial advantage of UV protection, as stated in a press by TESTEX, a globally operating, independent Swiss testing and certification organisation with a focus on textile and leather testing. The UV STANDARD 801 is a certification system for clothing and shading textiles. It provides reliable sun protection for consumers and has the world’s strictest testing standard for sun protective garments and textiles. The testing procedure determines the ultraviolet protection factor (UPF) of textiles. The UV STANDARD 801 also ensures that textiles are tested in both, a new and used condition to represent their realistic use (stretched, wet, mechanical wear and tear and laundering). The Indonesia-based integrated polyester player manufactures and markets polyester chips, staple fibres, filament yarns and fleece fabrics along with captive purified terephthalic acid (PTA). They have evolved into Indonesia’s most progressive, flexible, and fully integrated polyester producer, ranking among some of the best in the world.
Source: Fibre2 Fashion
With the revision of Japanese Industrial Standards JIS L0204-2 ‘Textile Term - Part 2: Chemical Fibre’ in November 2020, an amendment to the composition label of the ‘Textile Product Quality Labelling Regulations’ has been made. The amendment is related to the generic name for polyacrylonitrile synthetic fibres that are used in textile product labeling. The designated term ‘acrylic’ has been changed to ‘Modacrylic’ for a mass ratio of acrylonitrile of 85 per cent or less. This was previously designated under ‘Others’ in the regulation. Therefore, from now on, polyacrylonitrile synthetic fibre with a mass ratio of acrylonitrile of 85 per cent or more is classified as ‘acrylic’, and others are classified as ‘Modacrylic’, SGS said in a press release. The revision was approved and became effective on January 1, 2022, and a grace period will be provided until December 31, 2022. For inventories that are already in circulation in markets, it is not necessary to collect the products and change the label. Products containing the specified fibre pending distribution must be labeled with the new term on or after January 1, 2023.
Source: Fibre2 Fashion
Ministry is keen to improve the system of services provided to exporters and importers by committing to implementing the latest international regulations and rules. Minister of Trade and Industry Nevine Gamea stated that the ministry is keen to improve the system of services provided to exporters and importers by committing to implementing the latest international regulations and rules in procedures for the examination and release of shipments. Gamea said that these services contribute to facilitating the movement of trade between Egypt and various global markets. She noted that the ministry is working to develop a system of procedures in branches of the General Organisation for Export and Import Control (GOEIC), which contributes to accelerating the pace of examination and releasing shipments and not accumulating products in Egyptian ports. She further pointed out that the government of Egypt exerts great efforts to govern all border crossings and develop customs departments to reduce customs release time and facilitate procedures. During the inauguration of the new building of the testing laboratories at the GOEIC in Alexandria, Gamea said that the ministry has raised the efficiency of the infrastructure of the authority’s laboratories in Dekheila Port. The GOEIC built a new building for chemical and industrial laboratories to examine incoming goods to the ports of Alexandria and Dekheila, she explained, noting that the new building includes 29 laboratories covering all fields of traditional examination and a number of new fields, which are present for the first time in Egypt and the Middle East. Four laboratories specialised in new areas were established, including polymers, biodegradable plastics, and the examination of detergents and soap, in addition to the examination of wood, building materials, and textile quality tests. The GOEIC is also working on developing food and chemical laboratories and providing them with the latest laboratory equipment to expand the scope of examination and increase laboratory capacity, with the aim of obtaining the best results as soon as possible and then absorbing imports and promoting and supporting exports, the minister concluded.
Source: Zawya
Since the beginning of the new year, many enterprises have accelerated production to meet the delivery schedule. Along with that, units have been striving to connect with supply chains to increase the source of raw materials. Good signal from FDI enterprises According to a report of the Ministry of Industry and Trade (MoIT), the group of commodities with a strong increase in export turnover since the beginning of the year was agriculture, forestry, and fishery, with US$2.67 billion, up 21.4 percent over the same period in 2021. Processed industrial products also brought in $24.95 billion, up 0.2 percent over the same period, accounting for 86 percent of total export turnover. Items with export turnover of over $1 billion included phones and components with $4 billion; computers, electronic products, and components with $3.5 billion; textiles and garments with $3.3 billion. The above items are mainly produced by FDI enterprises. Explaining this, Mr. Hirai Shinji, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, said that the free trade agreements (FTAs) that Vietnam had signed created large advantages for products manufactured and exported from Vietnam. A survey of 1,041 Japanese enterprises shows that the average export per sales ratio of Japanese enterprises in Vietnam is 50.9 percent. In which, the rate of using FTA/EPA (Economic Partnership Agreement) of Japanese enterprises in Vietnam is 59.7 percent. The FTA advantages that Japanese enterprises use the most are the Vietnam – Japan and the ASEAN - EU FTAs. Currently, up to 74.3 percent of manufacturing enterprises and 62.2 percent of Japanese non-manufacturing enterprises have increased their revenue, thanks to the expansion of export and local markets. Moreover, when being asked about revenue forecast in 2022, up to 44.5 percent of businesses confirmed that it would increase. According to the representative of JETRO, more than 60 percent of Japanese enterprises want to invest in new or expand investment in Vietnam. Many of them have switched from investing in outsourcing some simple stages of products to producing finished products with high added value and the ability to export directly to third countries. From another perspective, Mr. Nguyen Ngoc Hoa, Vice Chairman of HCMC Union of Business Association, said that the export turnover accelerated because orders had been constrained for a long time due to the Covid-19 pandemic. Currently, the pandemic situation in the country has been controlled, production has gradually stabilized, and Vietnamese enterprises can fulfill large orders, helping import partners promptly replenish supplies that are short in the global supply chain. Therefore, import partners tend to shift their orders from China to Vietnam. In the coming time, the number of orders received by domestic enterprises is expected to climb sharply, leading to a rapid increase in export turnover. The US continues to maintain its position as the largest import market of Vietnam, with an estimated turnover of $9 billion, followed by China, the EU, South Korea, the ASEAN, and Japan. Domestic enterprises worry However, besides positive signals from the export market, many domestic enterprises, especially those that only focus on developing their domestic market share, are concerned about the export-import trade balance. For example, in January 2022 alone, Vietnam had a trade deficit of $5 billion from China, up 11.7 percent; $3.8 billion from South Korea, up 28.9 percent; $1.2 billion from the ASEAN, up 69.2 percent; $600 million from Japan. In January 2022, four imported items had an import turnover of over $1 billion, accounting for 46.8 percent of the total import turnover. Especially, the rate of trade deficit from the Chinese market increased rapidly, from $34 billion in 2019 to $54 billion in 2021. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association said that China has many advantages in supplying raw materials for production. Accordingly, low labor costs, a large production scale, and quick application of modern production technologies have helped China to have cheap raw materials that are enough to meet the needs of businesses globally, including Vietnam. In the textile and garment industry alone, up to 60 percent of fabric raw materials must be imported, mainly from China. For the plastic industry, Mr. Tran Viet Anh, CEO of Nam Thai Son Import-Export Joint Stock Company, said that 60 percent of raw materials for plastic production were also imported, mainly from the Middle East and Asia. Currently, the tension and escalation of oil prices trigger the risk of pushing up plastic raw material prices. Last year, the prices of plastic raw materials had a sudden increase of 30-300 percent depending on the type, causing great difficulties for businesses. And with the establishment of a new price level in 2022, enterprises can hardly recover and speed up production. According to many experts, the rapid growth of the trade deficit rate easily leads to consequences for the stable development of the economy. The first is the dependence on imported raw materials. Next, there are no favorable opportunities to promote investment attraction in the production of domestic raw materials. Therefore, along with solutions to strongly attract foreign investment into Vietnam, relevant authorities need to consider industries to prioritize investment attraction. Especially, it is necessary to have support policies of capital, taxes, and land rental costs to encourage enterprises to invest in raw material production to serve key export industries, reducing dependence on imported raw materials.
Source: SGGP News
Cites tourism, e-commerce, auto and pharma as potential areas of cooperation The business community of Pakistan should play its due role in promoting trade and investment in the Association of Southeast Asian Nations (Asean) markets such as Indonesia, said Indonesian Ambassador Adam Mulawarman Tugio. Talking to a delegation of the Rawalpindi Chamber of Commerce and Industry (RCCI) on Thursday, he pointed out that there were ample opportunities for the Pakistani business community in the $1 trillion market of Indonesia. He stressed that the strengthening of bilateral trade and investment could benefit the business communities of both countries. “The two nations have immense potential for cooperation in diverse fields including tourism, trade, e-commerce, textile, automobile, pharmaceutical and defence,” he mentioned. The envoy pointed out that Indonesia had a rich culture of tourism and hospitality and its government wanted to fetch 10% of the annual national income from that sector alone but due to the ongoing Covid-19 wave, it was unable to achieve the objective. “There are many avenues for people going to Indonesia from Pakistan for tourism purposes.” He noted that Bali and other islands held an important place in the world of tourism. “Indonesia can also share its experience in the tourism sector with the Pakistanis as new avenues of cooperation can be unlocked between the two countries,” he said. The ambassador emphasised that the automobile sector of Indonesia was making significant progress in car production and had begun export of automobiles as well.
Source: Tribune
Shipping lines in Bangladesh have expressed concern over some provisions in the recently published policy for private inland container depots (ICDs), citing that certain measures may cause adversities in running operations. The National Board of Revenue (NBR) issued a gazette on the "Private Inland Container Depot and Container Freight Station Policy-2021" on December 19 last year, setting guidelines for the establishment and operation of private ICDs. The Bangladesh Container Shipping Association (BCSA), a group of major shipping lines working in the country, expressed its concern over the new policy through a letter to the NBR issued yesterday. BCSA members include the local agents and branch offices of numerous global shipping lines, including Maersk Line, CMA CGM, Hapag Lloyd, Orient Overseas Container Line (OOCL), Cosco Shipping, Samudera Shipping Line, Mediterranean Shipping Company (MSC), Ocean Network Express (One), and HMM. In the letter, Captain AS Chowdhury, general secretary of the BCSA, said the provision for consignees and shippers to stipulate the names of ICDs as the "port of delivery" or "port of shipment" in letters of credit (LCs) and bills of lading (BLs) would have wide-ranging implications on the shipping process. According to the NBR policy, importers and exporters need to state an ICD's name in the LC or BL respectively if they intend to take import delivery or stuff export cargo at the ICDs. Mentioning that in case of imports, this would mean the carrier responsibility would end at the ICD while for exports the carrier would start handling containers from the ICDs, the BCSA opined that the inland haulage charge that was once the merchant charge would turn into shipping lines' charge.
Source: The Daily Star
Minister of Commerce Pan Sorasak has asked Canada to explore the possibility of establishing a bilateral free trade agreement (FTA) with the Kingdom as soon as practicable to improve trade flows between the two countries. Trade between the two countries has risen significantly, with $954.82 million worth of Cambodian goods entering Canada last year, benefitting from the North American country’s duty-free and quota-free scheme, he underlined at a meeting with Canadian ambassador to Cambodia Sarah Taylor last week. Sorasak expressed the country’s desire for Ottawa to arrange trade meetings with Canadian investors who are active in Thailand and Laos, and equip them to take advantage of the potential opportunities offered by Cambodia’s FTAs with China and South Korea, as well as the Kingdom’s membership in the Regional Comprehensive Economic Partnership (RCEP). He also made the case that Cambodia has seen some substantial reforms that ensure a conducive business environment, with the new Law on Investment as a predominant highlight. The local community by and large supports Canadian investors and affiliates doing business in Cambodia, Sorasak said. He pointed out insurance firm Manulife and ABA Bank as prime examples, the latter of which he noted has become the third leading bank in the country. The minister also asked Ottawa to extend technical assistance under the Canadian Trade and Investment Framework (CTIF) in areas such as small- and medium-sized enterprise (SME) capacity building, as well as trade and investment matching events and exhibitions that focus on the two countries. The ambassador said Canada would pursue negotiations for an ASEAN-Canada FTA and look into conducting a feasibility study on a similar trade deal with Cambodia, which she said would conform to trade policy under Canada’s new administration – which began on November 22 – that seeks to increase trade with the Asia-Pacific region. The launch of formal talks for the ASEAN-Canada FTA was announced on November 17 at the 10th ASEAN Economic Ministers – Canada Consultation, according to the ASEAN Secretariat. Taylor said she would discuss the minister’s proposals of the Ministry of Commerce with relevant institutions and encourage officials to work more closely with Cambodia to bring and develop specific projects under CTIF cooperation. Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on February 13 that Canada was a major buyer of finished textiles from the Kingdom. He said a bilateral FTA, coupled with the many benefits provided by the new investment law, would draw in more Canadian investors to the Kingdom. “Cambodia also has a skilled production force and reasonable labour costs,” Vanak said. In January-October 2021, Cambodian exports to Canada stood at $790 million, up 31 per cent year-on-year from $604 million, and imports were worth $32 million, down 33 per cent year-on-year from $48 million, according to commerce ministry data.
Source: Zawya,
