Cooperative model of development is best suited for the country, says union minister The Central government is working on a proposal to set up two dedicated export houses that will enable cooperatives to brand and export items, said Cooperatives Minister Amit Shah on Monday. Shah said the government plans to enable KRIBHCO and IFFCO to go for seed improvement and Amul, one of India’s largest cooperative, will set up laboratories to certify and test organic products across India. He was speaking at a conference to commemorate the 100th International Day of Cooperatives, Shah said proposed bylaws will ensure that if a primary agriculture cooperative society (PACS) becomes defunct, states will have the power to liquidate it within 180 days and set-up a new one in its place. Shah also said that the cooperative sector can play an important role in making India selfreliant and ensure the economic prosperity of 70 crore poor people. Capitalism and communism are extreme forms of governance and the cooperative model of development is best suited for the country, he said adding that the cooperation ministry is working on various aspects to strengthen the cooperative sector by making them professional and multi-dimensional. A cooperative university will be set up to provide skills training and offer courses in subjects like accounting, marketing and management. The trained manpower can be absorbed in the cooperative societies and this will also eliminate nepotism in appointments. He also said there is a need to change laws as well but stressed self-regulation among cooperatives. There are 8.5 lakh cooperative societies in India and around 12 crore people are linked directly with this sector. While mentioning the contribution of cooperatives in many businesses like milk, fertilisers, sugar, fisheries, agri-credit and procurement of food grains, he pitched for diversification of cooperatives into other sectors.
Source: Business Standard
The council has suggested that rule 96 of the Central GST Rules be amended to provide for transmission of Integrated GST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing. A raft of changes announced by the Goods and Services Tax (GST) Council last week, including the one to expedite refunds to those categorised as “risky exporters”, will certainly help but much depends on their implementations, exporters told FE. The council has suggested that rule 96 of the Central GST Rules be amended to provide for transmission of Integrated GST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing. Prior to this, the refund claims were suspended or withheld where the exporter is identified as risky and authorities will conduct lengthy verifications before deciding to release the amount. The rule change promises to expedite such IGST refund claims. The Council decided that supplies from duty-free shops at international terminal to outgoing international passengers will be considered as exports by such shops. Consequently, refund benefits will be available to them on such supplies. Relevant sections of the extant CGST rules will be scrapped to facilitate this. Suranjan Gupta, executive director at engineering exporters’ body EEPC India, said: “Conceptually, it (move on ‘risky’ exporters) promises great relief to exporters. But we have to see actual implementation to gauge whether the intended benefits are finally coming the exporters’ way or not.” Raja Shanmugham, president of the Tirupur Exporters Association that represents the country’s largest garment cluster, said exporters should not be classified as “risky” arbitrarily by tax authorities, as has been the practice. “Of course, the latest GST council decision will help. But the bigger issue is whether the taxmen should be allowed to brand an exporter ‘risky’ without giving him the opportunity to present his case. They should stop this practice altogether,” he added. While the move to treat supplies from duty-free shops at international terminal to outgoing international passengers as exports, too, is a good decision. However, given the limited volumes, it’s unlikely to have substantial beneficial impact on exports, said exporters. The rule change will come in handy at a time when strong external headwinds have threatened to disrupt the robust momentum in the country’s exports. Given the tangled global supply chains in the aftermath of the Russia-Ukraine war and consequent surge in international shipping costs, Indian exporters will find it difficult to ship out products on time and honour supply commitments in the coming months. Moreover, the country’s key markets, such as the US and the EU, are facing risks of recession. Against this backdrop, the move to expedite refunds for even “risky” exporters will help imporve their cash flow.
Source: Financial Express
This could be the most significant announcement by the government in the new FTP as far as fiscal assistance is concerned, given that most of the other key schemes involving even greater outlays have already been declared. The new foreign trade policy (FTP), which will come into force in October, is likely to provide support of at least Rs 5,000 crore to develop select districts as export hubs, official sources told FE. This could be the most significant announcement by the government in the new FTP as far as fiscal assistance is concerned, given that most of the other key schemes involving even greater outlays have already been declared. The assistance could be in the form of grants to states. The scheme to develop export hubs in various districts may be designed as a centrally-sponsered scheme (CSS) under which the Centre may extend about 60% of the funds and 40% will have to be borne by the states, one of the sources said. Initially, the commerce ministry may run pilot projects in about 50 districts across the country and gradually widen the initiative to cover more districts, he added. “A precise estimate of the assistance is still being worked out by the commerce ministry,” he added. Currently, while states are being encouraged to develop key districts into export hubs, there is no specific central government support for this purpose. The likely aid under the new FTP is expected to encourage states to do their bit as well. The move is part of the commerce ministry’s plan to implement the idea, mooted by Prime Minister Narendra Modi, to develop each district into an export hub. “Commerce and industry minister Piyush Goyal is very keen on making this a reality and is monitoring initiatives for this purpose,” one of the sources said. In the extant FTP, announced in 2015, the government had declared the Merchandise Export from India Scheme (MEIS) by merging five different schemes and sharply raising budgetary allocation for it. It had allocated Rs 39,097 crore for exporters under the MEIS for the pre-pandemic year (FY20). This scheme was replaced with the Remission of Duties and Taxes on Exported Products (RoDTEP) programme from January 2021. The validity of the current FTP, which was to expire in 2020, was extended until September 2022 in the wake of the Covid outbreak. The government has already earmarked Rs 21,340 crore for tax remission schemes for exporters like RoDTEP and RoSCTL in the Budget for FY23. This has substantially reduced the scope for any new big programme, apart from the one for services exporters. As such, Goyal has repeatedly exhorted exporters to shun the crutches of subsidies and instead boost their competitiveness, which would be key to achieving sustainable export growth. Since the FTP is being designed in the aftermath of the Covid-19 outbreak, it would lay stress on ensuring India’s greater integration with the global supply chain and reducing elevated logistics costs. Moreover, the Atmanirbhar Bharat initiative will find a befitting expression in the policy, according to the sources. The new policy will come at a time when exports are facing considerable external headwinds in the wake of the Russia-Ukraine war and the government is seeking to build upon a resurgence in outbound shipments, witnessed in FY22, in the current fiscal. As such, the country is aiming at realising a lofty merchandise export target of $1 trillion by FY28 from a record $422 billion in FY22. Developing key districts into export hubs is a crucial, albeit challenging, initiative in that direction.
Source: Financial Express
After the conclusion of the first round of negotiations for India-EU Trade and Investment Agreements, including the Geographical Indicators (GI), in New Delhi last week, the second round of negotiations will now take place in September 2022 at Brussels. Despite the global disruptions, India-EU bilateral trade showed growth of 43.5 per cent in 2021- 22. The first round of negotiations were held in a hybrid fashion – with some of the teams meeting in Delhi and most officials joining virtually. The round saw altogether 52 technical sessions covering 18 policy areas of FTA and seven sessions on Investment Protection and GIs. India’s bilateral trade with EU amounted to $116.36 billion in 2021-22, registering an impressive annual growth of 43.5 per cent. Currently, EU is India’s second largest trading partner after the US, and the second largest destination for Indian exports. The trade agreement with EU, once finalised and implemented, would help India in further expanding and diversifying its exports of goods and services, including securing the value chains. “Both sides are aiming for the trade negotiations to be broad-based, balanced and comprehensive, based on the principles of fairness and reciprocity,” an official statement said. Out of India’s total apparel exports of $14.825 billion in 2021, the EU accounted for $5.349 billion, according to Fibre2Fashion’s market insight tool TexPro. However, India’s share was mere 2.57 per cent in total European apparel imports of $223.319 billion during 2021. Europe also remained the second largest region for Indian export of home textiles. It imported $2.212 billion worth of home textiles out of total export of $8.830 billion last year. However, India is a very small supplier of home textiles to Europe with only about 6 per cent share out of total imports of $40.132 billion in 2021. India-EU negotiations were launched by Piyush Goyal, India’s minister for commerce & industry and European Commission’s executive vice president Valdis Dombrovskis at Brussels last month. While India is looking at larger penetration in the EU market through the trade agreement, European countries are looking at getting a bigger pie in the world’s fastest growing economy.
Source: Fibre 2 Fashion
ET has gathered that the thrust was on initiating key state-level reforms to increase exports by grabbing the low-skill manufacturing base China is exiting as wages rise there. ET has gathered that the thrust was on initiating key state-level reforms to increase exports by grabbing the low-skill manufacturing base China is exiting as wages rise there. China figured prominently at the recent chief secretaries' conference with at least three presentations focusing on how India must take advantage of the economic space being vacated by China. ET has gathered that the thrust was on initiating key state-level reforms to increase exports by grabbing the low-skill manufacturing base China is exiting as wages rise there. "This is India's Moment. (India can be) a potentially large beneficiary of China + 1 and "friend shoring" as "China (is) vacating low-skilled manufacturing export space," a JP Morgan presentation at the meet on 'India's Growth Imperative and the Role of Exports' said. It listed out apparel, ceramics, footwear, leather, iron and steel, furniture and gems and pearls as areas which China is fast vacating. Vietnam, Indonesia, Bangladesh, Spain, Italy and Germany are among the countries increasing their market share in these sectors as China exits them. It pointed out that demography is in India's favour as 'working age population is to increase even as that of other economies shrink'. JP Morgan made a strong case for a public capex push to boost near-term aggregate demand, increase private sector investment and utilisation levels in areas that are labour intensive and thereby create blue-collar construction jobs that are needed post- pandemic. It cited the example of China and how its focus on 'low skill manufacturing pulled labour out of lowerproductivity agriculture'. "India's endowment/opportunity lies in low skill manufacturing exports, where it is punching much below its weight. Service exports reveal competitive advantage but will impact white collar workers; key is to create more blue-collar jobs," the financial service provider said. It noted that the pandemic has made several "non-tradable services" tradable and India is in prime position to capture post-Covid digitisation opportunity provided due policy reforms are undertaken. Global major Credit Suisse pointed out that 'the next decade is likely to see a significant shift in production out of China' and it is 'India's game to lose'. Talking of opportunities in the 'garments sector', Credit Suisse observed that while the initial shift away from China benefited Bangladesh and Vietnam, there is a lot more that needs to shift. "An additional $50b of apparel exports can shift out of China. India has the skills and upstream value chains. Some of the most populous regions with cheapest labour need hubs", it said in a presentation on the 'Role of States in India's Growth Acceleration'. "Creation of hubs that may be simple to start with, but within a generation innovate to global leadership (e.g., Japan in the 1950s)", it added. It mentioned internal as well as external export opportunities in goods and services and specifically mentioned electronics, garments, consumer durables, specialty chemicals, automotive components (particularly EVs) as sectors that have strong potential going forward. Credit Suisse was emphatic that the next stage of reforms is needed at the state level in urban governance, real estate regulation, agriculture, power distribution, land records modernisation, labour law simplification, pollution control and so on. China also figured big in the presentation made by the then CEO Niti Aayog Amitabh Kant. He noted that while at the eve of Independence, India was richer than China or Korea on a per-capita basis (PPP terms), today incomes in Korea are 5x that of India's and China's 2x of India's. High investment and infrastructure growth have driven high growth in Japan, Korea, China and Singapore with China clocking an average real GDP growth of 10% between 1995-2010.
Source: Economic Times
India's traditional high dependence on crude oil led to its imports soaring 94.2 per cent in June to $20.7 billion India’s merchandise trade deficit surged to a new high of $25.6 billion in June amid slowing demand for Indian exports and rising imports of gold, coal and crude oil. Exports grew 16.8 per cent year-on-year to $38 billion in June while imports jumped 51 per cent to $63.6 billion, according to the preliminary data released by the commerce ministry on Monday. India’s traditional high dependence on crude oil led to its imports soaring 94.2 per cent in June to $20.7 billion. Continuing fetish of Indians for gold amid a downward spiral of the equity market meant gold imports rose 169 per cent to $2.6 billion during the month. Amid a slow increase in domestic coal production, the government’s directive to power generation companies to blend domestically produced coal with 10 per cent imported coal led to a 248 per cent jump in coal imports to $6.4 billion. Aditi Nayar, chief economist at ICRA Ltd, said the widening merchandise trade deficit was worrying with a sequential dip in exports and a rise in the non-gold imports relative to May. “With a steady uptick in the size of the merchandise trade deficit over the course of the quarter, we expect the current account deficit (CAD) to more than double to $30 billion in Q1 FY23 from the modest $13 billion in the previous quarter. However, robust services surpluses will partly absorb the shock. We expect the CAD to print in the range of $100-105 billion in FY23,” she said. The outflow of foreign portfolio investments and the rising trade deficit have put a downward pressure on the rupee, which has breached the 79 mark against the dollar. During June, exports of engineering goods and pharmaceuticals items contracted 1.6 per cent and 1.3 per cent, respectively, while petroleum exports remained robust at 98 per cent. Among other items, exports of gems and jewellery (19.4 per cent), readymade garments (44.7 per cent) and rice (39.3 per cent) registered robust growth. Engineering Export Promotion Council of India Chairman Mahesh Desai said the negative spillover of the Russia-Ukraine war had adversely impacted engineering exports. “Going forward, the intensity of any further impact would depend on how long the global uncertainties persist. The high volatility in commodity prices, higher logistics cost and geopolitical tensions remain key concerns,” he added. The finance ministry on Friday imposed cess of Rs 6 a litre, Rs 13 per litre and Rs 6 on petrol, diesel and aviation turbine fuel exports, respectively, to improve domestic fuel supply, reduce the trade deficit and garner additional revenue. The Union finance ministry also increased import duty on gold to 15 per cent from 10.75 per cent to curb rising imports of the yellow metal. Samiran Chakraborty, managing director and chief economist for India at Citigroup, said the higher import duty on gold could reduce CAD by $4-5 billion while the higher taxes on petroleum product exports could increase CAD by $2-3 billion. “The net effect of these measures on CAD should be small but uncertain given the complexity in assuming volume responses to tax changes,” he added.
Worrying Surge
•India’s trade deficit in Q1 FY23 rose 124% YoY to $70 billion
•FPI outflows, rising trade deficit have put downward pressure on the rupee
•Experts see CAD more than doubling to $30 billion in Q1 FY23 versus $13 billion in Q4 FY22
Source: Business Standard
The state was recognised for “Best Practices” like financial assistance to over 160 startups, sensitising over 300 potential private investors for investing in startups, and sensitising over 150 Government officials for engaging with startups. Gujarat was listed as “best performer” for the third time in a row in the Department for Promotion of Industry and Internal Trade’s (DPIIT) States’ Start-up Rankings 2021, results of which were released by Union Minister for Commerce and Industry, Textiles and Consumer Affairs, Piyush Goyal in New Delhi on Monday. The Gujarat delegation led by Principal Secretary, Education, S J Haider and Industries Commissioner & Nodal officer for Startup Gujarat Cell Dr. Rahul Gupta received the award, a government release said. According to the release, the state was recognised for “Best Practices” like financial assistance to over 160 startups, sensitising over 300 potential private investors for investing in startups, and sensitising over 150 Government officials for engaging with startups. The 2021 ranking was based on seven broad reform areas consisting of 26 action points ranging from Institutional support, Fostering innovation & entrepreneurship, Access to market, Incubation support, Funding support, Mentorship support, and capacity building of enablers. Startup India team undertook an extensive user feedback exercise and focused towards on-ground implementation of reforms in the state.
Source: Indian Express
Texworld New York City (NYC), Apparel Sourcing New York City (NYC) and Home Textiles Sourcing is all set to return from July 19-21, to the Javits Centre with a line-up of live educational seminars and presentation of latest trends. More than just sourcing, the co-located shows are a forum for the industry to learn and stay updated on the latest innovation. This edition’s educational programme includes the ever-popular Textile Talks and industry favourite, Lenzing Seminar Series. The sessions will feature a range of expert speakers and panelists leading open discussions and case studies to provide greater insight and knowledge exchange on topics including the latest in economic and supply chain challenges, sustainable strategies and legislations, accelerating circularity, and more, fair organiser said in a press release. This Summer 2022 edition also brings an exciting and artistic direction from the New York-based agency, Doneger | TOBE, spearheading the look and design for the Trend Showcase, along with offering insights during a one-day only seminar on what’s to come for the Fall/Winter 2023-24 season. The Trend Showcase will fill the hall with innovative materials and inspirational color palettes taking visitors on a journey BEYOND. “We have roamed the galaxies in search of meaning, to realise it can only be found within. As life passes us by, a collective consciousness dawns upon us – That we must dive beneath the surface and look beyond the material. Technological advancement, a craving for community and a sense of responsibility for the planet intertwine as we seek to remodel fashion,” said Kai Chow, creative director, Doneger | TOBE.
Source: Fibre 2 Fashion
Wearable technologies come in many forms and are usually classed as smart electronic devices worn on or close to the skin to detect and transmit key information relative to the body, such as vital signs and ambient data. From activity and fitness trackers to sensors, wearables can help people make more informed lifestyle choices, increase productivity, and support healthcare. Now, as part of an initiative developed by the University of Exeter and KYMIRA Sport, developments in advanced wearable technology can help older women keep active and continue to play sports later in life. The technology includes leggings fitted with novel sensors that can track and record movements during sport and exercise, as well as insoles for training shoes to measure and feedback pressure and force. The insoles will be developed by research partner CPI, which will offer additional data relative to the risk of potential injury, which would be extremely useful for those wishing to continue playing sports later on in life – especially women over 50. Project MISFIT The project, Maximising Inclusiveness in Sports through Female-centric Innovation and Technology (MISFIT), hopes to maximize inclusiveness in sports by keeping women active for longer. While it is well-known that regular exercise and maintaining an active lifestyle are good for physical and mental health, women are not particularly wellsupported as they age. While many people continue to be excluded from the main benefits an active sporty lifestyle offers, women are 3% less likely to be physically active than men. Additionally, women aged 55-74 are also 8% less likely to be active than those aged 16-34 – and this increases to 30% for those aged 75+. Hence, this project is motivated by the data that shows that once over the age of 50, the number of women participating in sports tends to drop off, as does the amount of physical activity they practice. “In particular, a lack of understanding of the activity behaviours and the absence of gender- and age- specific footwear, hamper inclusiveness,” she added. Therefore, the wearable technology developed as part of project MISFIT aims to tackle four main areas of focus to encourage women to remain active and take part in sports and exercise later on in life
Areas of Focus The areas of focus the wearables which contain novel sensors will address the following: facilitate self-monitoring before, during, and after exercise to offer suitable exercise data and help prevent injury; offer data-driven support for healthcare professionals such as doctors and physiotherapists, as well as other fitness professionals; allow for the harvesting of large-scale data to improve the knowledge surrounding women’s biomechanics, and finally inform the design and development of future wearable technologies and footwear for women wishing to participate in a multisport activity. Overall, MISFIT should encourage women to participate in sports and remain active as they age without fear of pain or injuries, providing the known benefits of strenuous and sustained physical activity on health, happiness and mental wellbeing. Dr. Sharon Dixon, University of Exeter The project will take place over the course of 2-years, supported by funding from UK Analysis and Innovation (UKRI) as a part of the Wholesome Ageing Problem. The aim is to create new knowledge and expertise supported by laboratory assessments and motion- capture programs to fine-tune the novel sensors and offer suggestions in relation to the essentials needed to advance and improve smart textiles and wearable technology. Therefore, project MISFIT could offer women a better chance at not only continuing to remain active later on in life but also improving physical, psychological, and social conditions amongst older women and help level and diversify the playing field in sport.
Source: Azo Sensors
The Russia-Ukraine conflict, energy crisis and increasing inflation are likely to rein in Bangladesh's present export momentum to Germany in the future, according to German ambassador to Bangladesh Achim Troster, who recently said as the purchasing power of the German consumers falls, they will spend less in buying consumer goods like readymade garments and leather. Inflation in Germany has recently hit a 50-year high of 8 per cent, according to fresh figures from the country’s Federal Statistical Office. Amid the Russia-Ukraine war, Bangladesh's export earnings in May 2022 hit a ninemonth low to $3.83 billion, 1.64 per cent lower than that of the earnings target of $3.89 billion set by the government, Troster was quoted as saying by Bangladesh German Chamber of Commerce and Industry (BGCCI) in a statement. "Bilateral trade between Germany and Bangladesh amounts to over $7 billion, with Germany importing over $6 billion worth products, mostly textile. Germany is Bangladesh's second largest export market after US." The envoy was speaking at an event on ‘National Budget 2022—Implications on Trade and Commerce’ organised by BGCCI in Dhaka. In 2020, Germany imported $6.53 billion and exported only $588 million worth of goods to Bangladesh, the country's news media reported. Garment exports from Bangladesh to Germany stood at $5.95 billion in fiscal 2020-21 and to the US market, it was worth $6.97 billion. Germany is the largest trading partner of Bangladesh in Europe and the second largest globally, he said. He said Bangladeshi exporters need to prepare to face the new German Supply Chain Act, which will come into effect on January 1, 2023, primarily focusing on human rights and environmental issues. Bangladesh must ensure human rights, rule of law, sound labour and environment standards to enjoy trade privileges in the German market, he added.
Source: Fibre 2 Fashion
The Swiss textile sector has launched the Sustainable Textiles Switzerland (STS 2030) programme to achieve the UN Sustainable Development Goals (SDGs). The programme has officially launched its implementation phase and aims to make a significant contribution to achieving the UN Sustainable Development Goals in the Swiss textile and clothing sector. TESTEX is one of the Swiss companies that has committed itself to the 2030 goals. The actors commit themselves to implementing specific measures and measuring them annually. With STS 2030, Switzerland is taking on a pioneering role. The programme pools the forces of the Swiss textile and clothing sector by uniting actors along the entire value chain. The committed companies, institutions and organisations have set themselves shared targets: (1) a massive reduction in greenhouse gas emissions in the textile sector, (2) the promotion of fair wages and decent work along the entire value chain, (3) the promotion of innovative business models towards a circular economy, and (4) transparency to ensure that sustainable purchasing decisions can be made. Based on a roadmap, the companies, institutions, and organisations that commit to achieving the targets will implement and track specific measures year by year. One aspect of the programme is that the range of products and services offered by the companies and organisations will be aligned with the sustainability goals. On the other hand, a proactive information policy will promote more sustainable consumption, purchasing and use of textiles, according to a press release. The STS 2030 programme was initiated by the three associations Swiss Textiles, Swiss Fair Trade and amfori. It has the backing of the State Secretariat for Economic Affairs (SECO) and the Federal Office for the Environment (FOEN), which are working hard to promote the programme as part of the steering group. So far, the following actors have committed to the programme from the retail sector: Transa Backpacking AG, Coop, PKZ Burger-Kehl & Co, Migros, Rrrevolve and glore Schweiz GmbH; from textile production: E. Schellenberg Textildruck AG, Bächi Cord AG, Weseta Textil AG as well as the brands CALIDA, Mammut Sports Group AG, Balsiger Textil AG (with Lavie and Journey Living), the Holy Fashion Group (with JOOP!, Windsor and Strellson), Collectif mon Amour, the Blue Suit, and the textile service provider Testex. With the City of Zurich as a committed actor, a first important pioneer from the public sector, as a buyer of textiles for public procurement, has also committed to achieving the STS 2030 targets. What unites the committed actors is the partnership focused approach of the programme and the possibility of achieving a large leverage effect together. The actors are also committed to assuming their social and environmental responsibility and contributing to the achievement of the Sustainable Development Goals. Coop, for example, explained their rationale for making a commitment as follows, "It's a partnership driven approach to advancing pressing sustainability issues along textile value chains with collaborative solutions." Transa explained its commitment as follows, "From a self-image, we want to take responsibility and contribute to the achievement of the UN Sustainable Development Goals. STS 2030 supports us in joining forces with allies on the path towards a more sustainable economy."
Source: Fibre 2 Fashion
Vietnam’s textile-garment export turnover in the first six months of 2022 (H1) is estimated to rise by 23 per cent year on year (YoY) to about $22 billion, reaching the highest level ever, according to the Vietnam Textile and Apparel Association (VITAS). Such exports to the US market in the first five months of 2022 increased by 26 per cent YoY to $7.58 billion, accounting for 57 per cent of the total value of such exports. A report by Viet Dragon Securities JSC (VDSC) said data from Vietnam’s general department of customs imply the prospects of the country’s textile-garment industry will depend heavily on economic developments in the US market. However, in the second half of 2022, VDSC forecasts that the demand for textiles and garments will tend to decrease due to high consumption in 2021, while inflation is cutting people's spending on unnecessary products. The US market also began to show many warning signs of a cooling down in apparel demand. In the first quarter of 2022, clothing accounted for just 3.9 per cent of total US consumer spending, down from 4.3 per cent in 2019 before the pandemic. According to Vinatex, the US market's textile and garment import demand is likely to decline by 7-10 per cent in the second half of 2022. On the other hand, the US ban on cotton originating from the Xinjiang region that officially took effect on June 21 also caused disruptions in the supply chain and contributed to higher cotton prices. VDSC data shows that only 10.5 per cent of US cotton apparel imports came from China in April, down from about 15 per cent at the beginning of the year. The ban may affect the source of raw materials of Vietnamese enterprises and create barriers when exporting to the US market, a news agency reported. But this can also be an advantage for large textile and garment enterprises in Vietnam, who have the ability to diversify sources of raw materials, replacing orders to the US of Chinese companies. Besides, the shutdown of China's economy also contributed to the shift of orders from China to Vietnam recently. In April, China's market share in textile imports to the United States fell to a new record low of 26.3 per cent in volume and 16.8 per cent in value. In a recent report, SSI Research estimated that revenue growth of textile and garment manufacturing companies in Vietnam will decelerate in the last six months of 2022 and in 2023. Yarn, fabric, logistics and labour costs are expected to remain at high levels due to rising oil prices and competition in the labour market, mainly in FDI factories.
Source: Fibre 2 Fashion
