INTERNATIONAL
Textile Raw Material Price 2016-04-19
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1048.31 |
USD/Ton |
0% |
4/19/2016 |
|
VSF |
2091.98 |
USD/Ton |
0% |
4/19/2016 |
|
ASF |
1945.31 |
USD/Ton |
0% |
4/19/2016 |
|
Polyester POY |
1038.27 |
USD/Ton |
0% |
4/19/2016 |
|
Nylon FDY |
2346.73 |
USD/Ton |
0% |
4/19/2016 |
|
40D Spandex |
4477.31 |
USD/Ton |
0% |
4/19/2016 |
|
Nylon DTY |
5757.20 |
USD/Ton |
0% |
4/19/2016 |
|
Viscose Long Filament |
1266.00 |
USD/Ton |
0% |
4/19/2016 |
|
Polyester DTY |
2153.74 |
USD/Ton |
0% |
4/19/2016 |
|
Nylon POY |
2122.86 |
USD/Ton |
0% |
4/19/2016 |
|
Acrylic Top 3D |
1211.96 |
USD/Ton |
6.80% |
4/19/2016 |
|
Polyester FDY |
2547.44 |
USD/Ton |
0% |
4/19/2016 |
|
30S Spun Rayon Yarn |
2840.78 |
USD/Ton |
-0.54% |
4/19/2016 |
|
32S Polyester Yarn |
1698.29 |
USD/Ton |
0% |
4/19/2016 |
|
45S T/C Yarn |
2470.24 |
USD/Ton |
0% |
4/19/2016 |
|
45S Polyester Yarn |
2130.58 |
USD/Ton |
0% |
4/19/2016 |
|
T/C Yarn 65/35 32S |
3010.61 |
USD/Ton |
0% |
4/19/2016 |
|
40S Rayon Yarn |
2284.97 |
USD/Ton |
0% |
4/19/2016 |
|
T/R Yarn 65/35 32S |
1837.24 |
USD/Ton |
0% |
4/19/2016 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
4/19/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
-2.67% |
4/19/2016 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
1.41% |
4/19/2016 |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
2.26% |
4/19/2016 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
4/19/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15439 USD dtd 20/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In order to boost the handloom industry, the government is working out a strategy, which includes increasing wages of skilled weavers to Rs 500 per day and boost exports. "We are working with a vision to increase the wages of skilled handloom weavers to the level of Rs 500 per day.”Our major interventions will be to cover five lakh weavers in MUDRA Scheme in the next three years and also to take up 300 more block level clusters for development. We are also aiming to enhance handloom exports from about Rs 2,500 crore to Rs 4,500 crore in the next three years," Textiles Minister Santosh Kumar Gangwar said. He said this during the first meeting of All India Handloom Board here. The minister is chairman of the board. The minister conveyed to the board members that the government is implementing a newly chalked out strategy for revival and resurgence of the handloom industry. Gangwar said: "The new strategy for revival of the industry has the core objective of increasing the earnings of handloom weavers through skill upgradation, loom upgradation, availability of good quality raw material at cheaper rates, availability of adequate credit facilities, product design and development and branding for effective marketing." The new strategy is also demand-driven, so that production can be made according to consumer preferences.
An important initiative include launching of 'India Handloom' Brand, which aimed at regaining consumer confidence, through quality endorsement in terms of authenticity, azo-free dyes, and fast colours. He said the Budget utilisation for the sector in 2015-16 was Rs 591 crore, which is 25 per cent higher than the previous year. Speaking on the initiatives taken to improve managerial skills in the sector, Gangwar highlighted the introduction of four-year course in handloom technology, at Indian Institute of Handloom Technology (IIHT), Salem and launching of handloom entrepreneur course at IIHTs at Bargarh, Varanasi and Salem. He also said the government has come out with a new model of credit for handloom sector and this has been done by combining elements of concessional credit such as margin money, interest subvention and credit guarantee cover with the innovative features of MUDRA scheme. "A pilot project has been successfully implemented in Odisha and Uttar Pradesh, and is being extended to seven other clusters," he said adding it has been decided to implement the scheme all over India, for which he sought cooperation of state governments. Further life and health insurance benefits to handloom weavers will also be now provided through national social security schemes.
SOURCE: The Economic Times
The Tirupur Exporters' Association (TEA) urged the Centre to repeal an amendment to the Povident Fund withdrawal norms saying the agitation in Bengaluru against this could spread to Tirupur. In a letter to Union Minister of State for Labour Bandaru Dattatreya, TEA reminded the minister of earlier warnings that the notification has created a lot of ripples in Tirupur. The cluster employs around 400,000 workers. There are reports of unrest at three factories and migrant workers protested against the management. It was a herculean task for managements to calm workers. Employment in the sector is next only to agriculture, and a lot of people would be affected if there are any untoward incidents. "We are more concerned about the meeting of delivery schedule as per the commitment given to buyers and any deviation from this will not only affect the financial side but also credibility and there is a possibility of losing future orders," he said. The association requested the minister to act immediately to withdraw the amendment instead of deferring implementation for three months.
SOURCE: The Business Standard
Expressing serious concern over declining shipments, exporters body FIEO today demanded that the government announce steps to contain the fall in exports and boost out-bound shipments. The Federation of Indian Export Organisations (FIEO) said it has become even more serious that the fall in exports during the last quarter of 2015-16 (January-March) was on a low base. It called for steps like declaring exports as a priority sector for the lending purpose and restoration of interest subsidy to all exporters. "Investment-linked benefit should also be announced for MSME exporters, line of credit or buyers' credit to boost exports and setting up an Export Development Fund," it said in a statement. The continuous slowdown in demand in global markets and liquidity problem are primarily responsible for the drop in out-bound shipments in 2015-16, it said. "Almost all major sectors, including engineering, petroleum, leather and textiles, have shown either a negative growth or a declining trend during the last three months," it added. These sectors together account for well over two-thirds of India's exports. "Moreover, uncertainty on the policy front, ease of doing business and high cost of credit did play a smaller role in the decline," it added. Declining for the 16th straight month in March, exports contracted by 5.47 per cent to USD 22.71 billion as shipments of petroleum and engineering products contracted sharply due to tepid global demand. For the whole of 2015-16, exports declined by 15.8 per cent to a 5-year low of USD 261.13 billion due to fragile global demand and low commodity prices.
SOURCE: The Economic Times
India's exports shrank 16 per cent in 2015-16, and going ahead, it is unlikely to improve in a hurry due to its close correlation with global imports, a DBS report says. According to the global financial services major, weak global demand weighed on India's exports. Moreover, falling commodity receipts and the real rupee strength played their part. "Looking ahead, India's exports are unlikely to improve in a hurry due to its close correlation with global imports," DBS said in a research note. Meanwhile, the World Bank and the IMF have downgraded their global growth outlook, with most of India's key trading partners facing sluggish growth at home. "More measures to support the trade sector are on the cards. Though they might provide short-term relief to the external sector, they are no panacea," the report added.
Exports dipped 5.47 per cent in March to USD 22.71 billion, registering the 16th consecutive month of decline amid contraction in shipments of petroleum and engineering goods with a tepid global demand. Trade deficit also fell to USD 5.07 billion last month as imports too contracted by 21.56 per cent to USD 27.78 billion. The trade gap - the difference between imports and exports - was USD 11.39 billion in March 2015. While the country's overall GDP growth has been robust and even FDI inflows have been consistently growing, exports have been its Achilles' heel for several months now. Finance Minister Arun Jaitley also said in Washington this weekend that "there are concerns about export growth, which is declining consecutively for more than a year due to slowdown in global demand".
SOURCE: The Economic Times
The protest march of garment industry workers against the recent amendments to the Employees Provident Fund (EPF) withdrawals turned violent on Tuesday. Protesters set fire on buses, cars and two wheelers, a police station in Hebbagodi and Peenya in west Bengaluru were attacked and massive traffic jams were reported across the city. Police have deployed 52 platoons in the city and were seen with rifles, tear gas guns and batons to control the mobs. The policemen were ordered to control the protesters by bursting tear gas shells and were ordered to fire in the air if they were surrounded. Tuesday’s protest in Bengaluru saw massive traffic disruptions on Hosur, Mysuru and Tumukuru roads where most of the garment manufacturing units are based. Hosur Road is home to Infosys and Biocon while the country’s largest small industrial estate is located on Tumukuru Road. The State government and police department officials told reporters that they were caught unawares by the intensity of protests by the unorganised garment industry workers. Karnataka Home Minister Parameshwara appealed to the protesters not to destroy public property and resort to violence. “The police in Bengaluru are handling the situation with restraint,” he said. Chief Minister Siddaramaiah in a press release said he would be deputing the State Labour Minister to discuss the PF issue with the union Labour Ministry.
Garment industry workers were protesting over the new amendments to EPF, wherein employees are allowed to withdraw only their contribution to their provident fund accounts. They will be able to withdraw the employer’s contribution only after they reach 58 years. Aam Aadmi Party (AAP) Karnataka said it supported the demands of factory workers of revoking the revised age requirement for provident fund withdrawals. “A large section of our country works hard, and despite that, barely manages to make a living. Considering the high cost of living in urban areas, they are struggling to make ends meet. Under such conditions, the draconian policy of revising the PF withdrawal age limit to 58 years (retirement age) is harsh for such workers who often need to tap into their life-time savings for a myriad of essential needs,” said Shivakumar Chengalaraya, State Co-Convenor, AAP. He, however, condemned the violence unleashed by the garment workers.
SOURCE: The Hindu Business line
Union Commerce Minister Nirmala Sitharaman today asked institutes like IIFT to meaningfully contribute to the debate over free trade agreements and also suggest ways to enhance India's trade competitiveness. Speaking at the 50th convocation of the Indian Institute of Foreign Trade (IIFT), the minister said it is time now for such centres to be far more proactive, assertive and contribute in trade-related matters. "Give inputs to the existing narrative of what is happening in the global trade or international business... get into the details and see what we can do in the next few years. Tell us how India is positioned and how Indian industry is positioned in terms of linking with the global value chains," she said. The minister requested the faculty and the students to contribute more on these issues. "Activities of IIFT or the Centre for WTO Studies, Centre for SMEs should make a proactive contribution... it is this which is critical to policy-making and with due respect, it is this which I find somewhat absent," she added. The remarks assume significance as the country's exports slumped to a 5-year low of $261 billion in 2015-16. The exports have been in the negative zone since December 2014. The commerce ministry has recently held a brain-storming session with experts and academicians on exports and free trade agreements.
Sitharaman clarified that the country's exports are falling in value terms, not in volume. "The narrative is constantly that why exports are falling for 15th or 16th month consecutively. Demand is slowing, as a result our exports are falling, but can this narrative be more mature... what exactly is contributing to the quantum fall?" she wondered. "Can we look at why the FTAs are really not contributing to India... the narrative is going on without much of a substance... MBAs and PhD (students) should add to the debate," the minister added. For 2015-16, exports fell 15.8 per cent to a 5-year low of $261.13 billion due to weak global demand and low commodity prices. Imports went down by 15.28 per cent to $379.6 billion in 2015-16, leaving a trade deficit of $118.45 billion. The trade gap stood at $137.69 billion in 2014-15.
SOURCE: The Economic Times
A combination of a slump in petroleum prices and the continuing slowdown in global growth has wreaked havoc with India’s merchandise exports. Merchandise export earnings slumped 16 per cent in fiscal year 2015-16 to $261.14 billion. Exports have shrunk for 16 successive months, while earnings from petroleum product exports collapsed 47 per cent in the last fiscal year to $30.2 billion. Also, the share of petroleum products in India’s export basket contracted to just about 12 per cent, from over 18 per cent a year ago. Such devastation was not seen even in the midst of an economic slowdown in 2009-10 triggered by the financial crisis of 2008, when petroleum prices slumped from the peak of over $140 a barrel to about $32. India’s exports had contracted a mere 3.5 per cent in 2009-10. But this time it’s different. The world is drowning in surplus oil with the US becoming a major oil producer thanks to shale oil, and Iran returning to the global oil market following the lifting of sanctions. The slowdown in China has also led to a softening of demand for other commodities, including iron and steel.
Oil production is expected to remain in surplus for some time more, at least till many nations find production unviable at prevailing prices. The low oil prices are widely expected to force many producing nations to cut output, which is then expected to trigger some increase in prices. But that recovery in oil prices is unlikely to lead to anything like the 40 per cent jump in export earnings witnessed in 2011-12. Also, it is not petroleum products alone that are dragging down India’s exports. Gems and jewellery, iron and steel, apparels and yarns, all are earning India fewer dollars than a year ago. Even basmati rice has not managed to escape the slowdown.
There are no ready solutions to ensure a turnaround in India’s exports. Diversifying to new markets is unlikely to yield increased earnings, given the structure of India’s export basket. Exporters lament that the Centre and the Reserve Bank of India have not done enough to make India’s exports more competitive. They want the RBI to depreciate the rupee, like China has done with its currency, to gain more markets. But RBI governor Raghuram Rajan is unwilling to go down that path, and has turned down the commerce ministry’s plea to do so. He is right in his stance that devaluing the rupee is not a good strategy to help exporters. While a cheaper rupee will provide temporary respite to exporters, it will create another problem that neither the Centre nor the RBI would want to deal with — costlier imports putting upward pressure on prices. A sounder and more long-term strategy would be to focus on becoming more competitive and quality conscious, and strategically rework India’s trade agreements, particularly in view of the mega trade pacts due to come into play shortly.
SOURCE: The Hindu Business Line
Finance Minister Arun Jaitley has virtually rebutted RBI Governor Raghuram Rajan’s remarks that India is ‘one-eyed king in the land of blind’ saying compared to the rest of the world, the Indian economy was growing much faster and, in fact, the fastest. At 7.5 per cent growth rate any other country in the world would be celebrating but it is a tribute to India’s growth story that at this rate “we are still impatient because we know that our potential is to do distinctively better”, he said. Jaitley was reacting to a question by CNBC TV18 on Rajan’s remarks last week that at 7.5 per cent growth rate India seemed to be ‘one eyed king in the land of blind’. “Compared to the rest of the world we are growing much faster, in fact the fastest. Compared to our own potential, we can do better,” he said. On the potential to do distinctively better, Jaitley said, “I see a couple of variables (like good monsoon and reforms) — if they work to our advantage, we can do much better.” “Assuming we have a moderate monsoon or a good monsoon, I am sure we will improve upon our growth rates but I see no difficulty in maintaining the present one because of the thrust on the kind of economic activity going on in India, public investment, foreign direct investment, increased demand,” he said.
As regards reforms, he said that the momentum must continue and expressed hope that Goods and Services Tax (GST) will get through with numbers changing for the better in the Rajya Sabha. “So, if legislations like bankruptcy, legislations like GST, we are able to see-through and our ability to impact on investor confidence will also increase,” Jaitley said. He parried questions on government planning to give extension to Rajan whose term is coming to an end in September but did mention that RBI has done fairly well. In last one and half year, RBI has reduced interest rate by 1.50 per cent and the rates can come down further if there is good monsoon and inflation remains under control. “Once the prices came under control, I think it was incumbent and this was a national expectation that the rates should go down... I am sure if this trend of containing inflation continues, we can hope for a better interest rate regime which in turn will have a spiral effect on improving upon India’s productivity and generate more activity,” he said.
SOURCE: The Business Standard
Economy is leading the way in the relationship between India and China, Finance Minister Arun Jaitley said as he stressed that the two largest economies in the region are seeing an uptick in investment and trade issues are being sorted out. "As far as the economic relationship (between India and China) is concerned, that is significantly improving almost by the day," Jaitley said in response to a question on the India-China economic relationship following his address at the Asia Society here yesterday. "You have two very large economies in the region where trade is picking up, trade issues are sorted out, investments are taking places," he said after his talk on 'Make in India - The New Deal' presented by CII in partnership with the Asia Society Policy Institute. Jaitley emphasised that Indian industry has set up establishments in China and Chinese investments have also come into India in "a big way". "Economy is leading the way as far as the relationship between the two countries is concerned," he said.
On the need for improving air connectivity between New Delhi and Beijing, Jaitley said there are several private and state airlines operating in India and China and anyone of these airlines "will now have to take the initiative" to expand services between the two nations. He cited the example of India's direct connectivity with Australia, Japan and the US west coast, adding that "it is only a matter of time before" more direct flights between India and China come up instead of just one or two operating services between the two.
SOURCE: The Economic Times
To increase the volume of bi-lateral trade from 104 billion dollars now to 500 billion dollars, a goal set by US President Barak Obama, both India and the US need to work overtime, said Deputy Chief of Mission of the US Embassy, Micheal Pelletier. He was addressing the inaugural session on 'Investing, Trading, and Travelling to the Unites States', organised by the Confederation of Indian Industry in collaboration with the US Embassy at CII headquarters in Chandigarh. To accomplish full-time rapid growth investment by both countries is very important, he said. Indian- owned companies in the US employ 44,000 people and contribute 2 billion dollars to US exports, he highlighted. "The fact that the second largest delegation at the SelectUS summit was from India last year was a very encouraging sign and the number will increase when the summit is held this year in June," Pelletier said. "Around 69% of H1B and 29% of H1N1 visas were given to Indians and the US Government is working towards enhancing facilities to grant early visas for Indians. Last year, 1 million visa applications of Indian applicants were processed for US."
CII Chandigarh Council Chairman, Dr Dinesh Dua, said "As per a survey-based report of CII 'Indian Roots American Soil' on Capitol Hill which showed that 100 Indian companies have made cumulative tangible investments of $15.3 billion in the US with an average of $433 million per state. Almost 20 US states Texas , Pennsylvania Minnesota, New York and New Jersey received more than $100 million in investments from Indian companies. However, there are several sectors where US companies can invest in India. The Infrastructure sector presents a trillion dollar opportunity for US companies in critical areas such as development of highways, airports and ports etc. The two countries can cooperate is in the area of infrastructure, financing, the Railways sector, Renewable Energy sector, the Urban development/Smart Cities sectors, Indian defense market, For Digital India, the Bharatnet mission, etc." "CII lauds the fact that some states are recognizing the barriers to business this poses, which is evident through the withdrawal of the Buy America bill in Maryland in 2013. Indian Industry believes that the US-India strategic partnership goes beyond the merely transactional and must strive to achieve a balance between a sustainable and long term strategic partnership and the comparatively short term goals," he added.
Addressing session on 'Promoting India-US Partnership in Business & Industry, Paul Frost, Commercial Officer, US Embassy, said, "Commercial services offered by the US Embassy include match-making services for US and Indian businessmen on the lines of increasing bilateral cooperation as well as working towards better trade relationships. The US Embassy developed the USA to Go outreach programme owing to significant growth of commercial and personal ties between the two nations. Non-immigrant visa applications to the US continue to increase every year, from 8,60,000 in 2013, to more than 1,100,000 in 2015. India is behind only to China in sending the most students in the United States, at nearly 1,33,000. Nearly 1 million Indian tourists visited the United States in 2015 and spent over $9 billion. India is among the fastest growing sources of foreign direct investment into the United States, with roughly $11 billion. The US government has specific programs to promote and facilitate each of these activities: Select USA and the International Buyer Program promote investment and trade; Education USA facilitates education; and Brand USA is a public-private partnership to promote travel and tourism to the United States. Through USA to Go, the US Embassy aims to create awareness among leaders throughout North India about opportunities for engagement in the US. CII and the US Embassy are grateful for the support of Western Union, United Airlines, Brand USA, Make My Trip, Sannam S4 and Vibrant Networking Forum to make this event possible.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 38.76 per barrel (bbl) on 18.04.2016. This was lower than the price of US$ 40.21 per bbl on previous publishing day of 15.04.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2584.28 per bbl on 18.04.2016 as compared to Rs 2671.41 per bbl on 15.04.2016. Rupee closed at Rs 66.67 per US$ on 18.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 18, 2016 (Previous trading day i.e. 15.04.2016) |
Pricing Fortnight for 16.04.2016 (30 Mar to 12 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
38.76 (40.21) |
36.98 |
|
(Rs/bbl |
2584.28 (2671.41) |
2455.84 |
|
|
Exchange Rate |
(Rs/$) |
66.67 |
66.41 |
SOURCE: PIB
Turkey's plan to impose anti-dumping duties on U.S. cotton imports will drive up costs for its own textile producers, hurting the competitiveness of their exports, the head of an industry group said on Tuesday. Ankara has decided to place 3 percent duties on U.S. cotton imports, saying in an announcement on Sunday that imports were hurting domestic cotton production. U.S. cotton farmers have said they will fight the decision through the World Trade Organization and Turkish courts. The spat is likely to put strain on trade relations between one of the world's top fibre growers and one of its biggest customers at a time of weak global prices and demand. "This is a decision that will increase raw material costs of textile producers by 2-3 percent and will somewhat affect price competitiveness of Turkish exports," Ismail Gulle, head of the Istanbul Textile and Raw Materials Exporters Union, whose members account for 70 percent of Turkish textile exports. "U.S. cotton has specialty uses, it is not something we could give up using, the industry will shoulder the costs."
Turkey is the second-biggest buyer of U.S. cotton, with shipments ranging from 1.5 million to 2 million bales per year. Turkey exported $17 billion worth of garments and ready-to-wear clothing last year, and $8 billion of textiles and raw materials, according to industry data. The move had been widely expected since February, when Turkey's economy ministry said U.S. cotton was hurting the domestic cotton industry. "It was determined that the material damage to local production branch has been the result of dumping in imports," the government said in its official gazette on Sunday, announcing the move.
SOURCE: The Daily Mail
Vietnam is emerging as a potential new world production center of textile products, as major global apparel makers are expanding their production in the Southeast Asian country. Avery Dennison RBIS, a U.S. manufacturer of apparel labels and tags, and South Korean clothing maker Panko are building new plants in Vietnam, which is part of the Trans-Pacific Partnership trade liberalization pact among 12 Pacific Rim countries, including the U.S. and Japan. In addition to low labor costs, expected cuts in tariffs under the agreement are drawing textile companies to the emerging country. According to one estimate, Vietnam's textile exports will double in the decade from 2015 to 6 trillion yen ($55 billion).
New kid on the block
At Avery's brand-new plant in Long An Province in southern Vietnam, state-of-the-art label printers are rolling off paper tags for global apparel brands such as Nike and Adidas. The plant, which came onstream in January, can print 10,000 tags per hour containing information like prices and materials used. Its production capacity is twice that of the old plant. The tags are then delivered to factories in the surrounding areas that mainly manufacture sports apparel. Rishi Pardal, the company's vice president in charge of North Asia, says Vietnam will replace China as the principal hub of textile exports to Western and Japanese markets. Panko is building a new plant in Quang Nam Province, central Vietnam, at a cost of $100 million. The company is responding to growing orders from global apparel brands, including Uniqlo. Choi Jae-ho, a director at Panko's local unit, said the company's sales increased 30% last year and the outlook is for a similar expansion this year, too. China is still the dominant player in Asia's apparel business, with a total export value of 30 trillion yen. The figure dwarfs India's annual apparel exports of slightly less than 5 trillion yen, the second largest in Asia. But rising labor costs, which have doubled in five years, are threatening China's status as the regional champion. Textile exports from China fell last year for the first time in six years, signaling that apparel makers are looking to other countries with lower costs.
Vietnam clearly has the potential to become a serious challenger to China's supremacy in textile production and exports. In addition to low labor costs, which are nearly 60% less than in China, the TPP, which is expected to come into force around 2018, will further enhance Vietnam's competitiveness. The trade pact will, for instance, immediately scrap tariffs averaging 20% on 70% of the items Vietnam exports to the U.S. Vietnam's advantage as an exporter will receive an additional boost from its free trade agreement with the EU, which is pending ratification. To gain the most benefits from the tariff cuts under the TPP, a country needs to have both upstream and downstream sectors. In the textile industry, that means Vietnam needs both spinning and dying as well as sewing businesses. Huntsman Textile Effects, a division of Huntsman and a leading manufacturer of textile dyes and chemicals, is seeking to capitalize on new business opportunities in Vietnam created by the trade accord. The company used to transport dyes for yarns and cloths from a warehouse in Thailand to Vietnam, which took two to three weeks to deliver products after receiving orders. But, last year, Huntsman opened its own bonded warehouse in Dong Nai Province in southern Vietnam, which cut delivery times down to as short as four business days.
Getting in on the action
Even though China has not joined the TPP, Chinese textile companies are also expanding their operations in Vietnam. Texhong Textile Group, a major Chinese textile manufacturer, has spent 600 million yuan ($92.6 million) to build new production facilities on 220,000 sq. meters of land it purchased in Quang Ninh Province in northern Vietnam. In partnership with a Hong Kong-based knitwear manufacturer, the company is planning to build up integrated textile manufacturing and sales operations in the country, starting with yarn production. Hong Tianzhu, Texhong's chairman, said his company will seek to be the top player in Vietnam, which he describes as the biggest beneficiary of the TPP. Shoe manufacturers are also expanding in Vietnam. Pou Chen of Taiwan, the world's largest contract manufacturer of footwear, which counts Nike and other major brands among its customers, made 42% of its products in Vietnam as of the end of 2015, compared with 25% in China. Vietnam also accounted for 51% of production by Feng Tay Enterprises, Pou Chen's Taiwanese rival, in the first three months of 2016. But Vietnam is facing tough challenges in its quest to become a global textile giant: Minimum wages in the country are rising at double-digit rates, and its underdeveloped petrochemical industry is limiting production capacity. If it wants to become the world's new textile plant, Vietnam needs to quickly upgrade its industrial structure while its textile exports still maintain price competitiveness. Other Asian countries are also trying to benefit from the TPP. Since the trade deal was truck in October last year, Indonesia, Thailand and the Philippines have announced their intention to join. These countries are clearly feeling pressure to keep up with their neighbors in global competition. Foreign investment in Vietnam's textile industry totaled $5.7 billion in 2014-15, equal to nearly 70% of the accumulated investment over the past 20 years. Such rapid growth cannot be attributed solely to the TPP, but the trade pact has no doubt been a major factor. The situation poses a puzzle for Japanese textile makers operating in countries such as Thailand and Indonesia. They must decide whether to expand into Vietnam now or wait for its neighbors to join the TPP.
SOURCE: The Asian Review
A 15-member Jordanian business delegation from the Amman Chamber of Commerce (ACC) and the Textile & Ready-Made Clothes Syndicate which visited the first-ever textile-sector specific exhibition 'Texpo', organised by Trade Development Authority of Pakistan (TDAP), has been impressed with the quality and prices of the textile products in the exhibition. The delegation was led by ACC board member Marwan Ghaith, and Sultan Allan, the syndicate's president. “The Jordanian businessmen were very impressed with the quality and prices of the textile products in the exhibition and it was beyond their expectations,” Allan said according to an ACC press release. He also mentioned that it was the first-time that the businessmen, who were large importers of textile products from China, Turkey, Egypt, South Korea and India, got the opportunity to explore this dynamic market in Pakistan. The visit provided the Jordanian businessmen with a first-hand experience of Pakistan's dynamic textile sector, besides giving them a chance to meet many major Pakistani textile exporters at the exhibition, the statement said.
SOURCE: Fibre2fashion
