Around 270 underprivileged women have been employed at the two manufacturing units of Karur-based textile companies that have opened recently at Veppur Panchayat Union in Perambalur district.A couple of Karur-based textile companies, A-Tex Home Collection which manufactures bags, and Stellar Fashion Incorp, which produces undergarments, established their manufacturing units in four villages, Olaipadi, Nannai Murukkangudi and Keezhapuliyur under the Tamil Nadu Rural Livelihood Movement in April. Unused buildings were renovated and furnished with all amenities, including sanitation and power connection to set up the units.A total of 300 people in several villages benefited, with 90% of them being women. “This brought in employment and has helped empower around 270 marginalised women,” said District Collector P. Sri Venkada Priya.The main aim of establishing the units was to provide marginalised women with a life of dignity, security, and recognition.Since there were no factories or large production units around, women who have the skills are restricted due to lack of employment opportunities and were left with no choice but to accept low-paying jobs. “Though women have basic education qualifications, they are unable to travel to other cities for work due to their family background,” said Ms. Priya.“Women are left to care for the family on their own as their husbands work in other cities. Because the elderly and children depend on them, they are obliged to choose menial jobs. The concern is about who will look after the family if they leave for work. To address this, they were given jobs closer to their homes,” she added.The major beneficiaries are the women from marginalised sections as many of them struggle to make ends meet. “I know to stitch, but I’ve never had a job. After acquiring a job in the manufacturing unit with a respectable income, I can meet my family’s daily expenses and also save a significant amount of money, said Karthika, a resident of Keezhapuliyur.

Source: The Hindu

TN and Maharashtra trade unions demand clarity on future of NTC mills

Tamil Nadu and Maharashtra trade union leaders on Wednesday met with the Textile Secretary Rachna Shah and Chairman and Managing Director of National Textile Corporation Pravakta Verma in New Delhi and demanded clarity on operations of NTC mills. T.S. Rajamani, a co-ordinator of Save NTC, said the delegation asked the ministry to clarify its decision regarding operating the NTC mills in the country. The union leaders also sought payment of gratuity and bonus arrears to the workers at the earliest.He added that the officials had said that a decision on operating the NTC mills will be a policy decision of the government and the demands of the unions will be presented to the government.Efforts will be taken to pay the wage arrears to the workers by the end of this month and payment of bonus and gratuity arrears will also be decided by the ministry. Earlier, the Centre has constituted a committee under the NITI Aayog to propose a plan for the NTC mills that have proved to be unviable despite attempts by the government to revive them.

Source: The Knnindia

India-U.S. CEO Forum held virtually; Forum chaired jointly by Shri Piyush Goyal and Ms. Gina Raimondo, US Secretary of Commerce

The India-U.S. CEO Forum, chaired jointly by Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles and Ms. Gina Raimondo, US Secretary of Commerce was held virtually today. This is the sixth time the Forum has been convened since its reconstitution in December 2014 by the Governments of India and the USA. The Forum continues to be an effective platform for dialogue across key sectoral themes and to identify areas for closer collaboration for mutual benefit of both economies. Senior government functionaries, including Mr. Taranjit Sandhu, the Indian Ambassador to the US also participated in the meeting. The CEO Forum, comprising of CEOs from leading Indian and US based companies, is co-chaired by Mr. N. Chandrasekaran, Chairman of Tata Sons and Mr. James Taiclet, President and Chief Executive Officer, Lockheed Martin. Shri Goyal highlighted the significant growth of the India-U.S. economic relations driven by the common interest of promoting sustainability, emerging technologies, globally resilient supply chains, and small businesses. He also reiterated the importance of such dialogues in leveraging this momentum. Secretary Raimondo thanked Shri Piyush Goyal, the co-Chairs and CEO forum members for their participation and insightful identification of common focus areas that will further bolster the bilateral partnership between the two nations. CEOs from both sides commended the two governments for implementing transformative reforms and initiatives undertaken to strengthen bilateral cooperation. The CEOs, under the seven working groups, presented priority areas to create stronger partnerships and boost growth across various critical areas such as Entrepreneurship and Promoting Small Businesses, Healthcare and Pharmaceuticals, Aerospace and Defence, ICT and Digital Infrastructure, Energy, Water and Environment, Infrastructure and Manufacturing, Financial Services, Trade and Investments, among others. This dialogue will serve as the framework under which specific recommendations will be charted out during the sixth edition of the India-US CEO Forum, due to be held early next year.

Source: The PIB

11th Session of the India-Belarus Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation held

The 11th Session of the India-Belarus Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held on November 10, 2022 in New Delhi. Shri Som Prakash, Minister of State for Commerce and Industry, led the Indian delegation and H. E. Mr Vladimir Makei, Minister of Foreign Affairs of the Republic of Belarus, led the Belarusian delegation. The Intergovernmental Commission reviewed the results of bilateral cooperation that took place after the tenth session of the Commission in 2020. While expressing satisfaction at the progress made in regard to some projects, the Commission also directed concerned Ministries and Departments to focus on key sectors in the trade & investment spheres to finalise concrete outcomes.On the economic front, there has been substantial progress with expanding cooperation across all sectors of focus. India and Belarus reiterated their strong desire to further broaden their cooperation with emphasis on key sectors such as pharmaceuticals, financial services, science and technology, heavy industries, culture, tourism, and education. The two ministers directed their respective business communities to engage with each other in these sectors to further mutually beneficial cooperation.The two sides agreed to promote cooperation among various states in India and regions in Belarus, especially in focus areas.India and Belarus are strategic partners since 1991. The two countries cooperate on several areas. This visit was an opportunity to review the existing relationship and find out ways and means to further strengthen cooperation between the two countries.

Source: The PIB

EU’s Carbon Border Adjustment Mechanism: Why should Indian industry care?

As we write this, trade and climate change is being discussed at COP27 in Sharm Al Sheikh. The problem in a nutshell is that trade today is associated with an unsustainable level of resource consumption that is contributing to climate change, pollution, and biodiversity loss. It is, therefore, an imperative that we stop ignoring this and viewing trade as a goal in itself and rather, see it as the means for creating more sustainable opportunities of economic growth.Reflecting a shift in trade ethos, various initiatives are trying to connect sustainable production with sustainable consumption. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is one of them. Having established the Emissions Trading System (ETS) in 2010 that provided carbon emission rights to domestic producers, the EU will now be imposing an equivalent cost on imports to level the playing field between foreign and domestic producers, thereby preventing carbon leakage. From 2026 for the chosen sectors of cement, fertiliser, iron and steel, electricity and aluminium, imports will face an additional tariff in so far as the country of source does not exact an equivalent price for the carbon embedded in them.This will negatively impact the Indian industry which has significant export interests in the EU. The EU has been the destination for nearly 17 per cent of total Indian exports in the period of 2012-2021. Around six per cent of these exports will fall under the purview of the CBAM. Of these CBAM-implicated Indian exports, the iron & steel sector, followed by aluminium will be the most affected. Should CBAM expand beyond these five sectors, it will next seek to cover organic chemicals, plastics, polymers and hydrogen. Gradually, almost all carbon intensive sectors will be sought for coverage.Even as the specific question of CBAM’s legal compatibility with WTO norms remains undetermined, and the general question of the appropriateness of its extraterritoriality acts as a geopolitical thorn, the inevitability of CBAM or CBAM like measures cannot be disregarded. Most countries already have some form of domestic carbon pricing scheme in place. Should CBAM open the pandora’s box of carbon border measures, others, especially the US and Canada may follow suit. This makes sense in light of highly ambitious carbon neutrality commitments undertaken by over 70 countries, including the biggest emitters – China and the US.Crucially, over 2,000 companies globally have put in place targets to achieve net zero carbon emissions. These include 35 Indian companies engaged in sectors such as construction, electric utilities, mining, textiles, automobiles and chemicals among others. There is also a general acceptance of Internal Carbon Pricing (ICP) by various Indian businesses, indicating an openness towards adapting to a low carbon future. Thus, even as business and governments, especially from the developing countries register their protest against green protectionism, many of them are simultaneously and pragmatically adapting to the upheaval that greening of supply chains will bring to current levels of competitiveness. Is the readiness displayed by the Indian industry towards a green transition enough for mitigating the commercial risks emanating from CBAM? Looking at existing surveys, it is safe to surmise that the industry is aware of the initiative but possesses a limited understanding of the same. Further, reliance on governmental opposition of CBAM to buy some respite from adaptation is not a reassuring business strategy. Rather, the time to act is here and now, especially for the sectors implicated in the immediate future. They must formulate a clear action plan at the sectoral and firm level for mitigating the implementation and compliance costs of CBAM across their supply chains.

Opportunity in adversity

Pre-emptive adoption of low carbon pathways can catalyse differentiated and resilient growth. Growing public consciousness is leading to a change in consumer preferences that is increasingly creating an incentive to enter a ‘race to the top’ and distinguish products from competitors based on adherence to social values especially climate accountability rather than cost differential alone. Significantly, even at this nascent stage, there is enough commercial demand to incentivise movement. Public and private steel buyers in downstream sectors are deploying their purchasing power through initiatives such as Steel Zero, Clean Energy Ministerial Industrial Deep Decarbonisation Initiative and the First Movers Coalition. By 2030, McKinsey projects that the demand for green steel in Europe could be double than the available supply. Similar supply shortages are predicted for recycled aluminium.Beyond product differentiation, surging demand for green goods, services and technologies, especially zero-carbon technologies, give firms opportunities to venture into new business avenues such as electric vehicles, lithium batteries and green hydrogen among others. Top Indian conglomerates have begun this process of diversification. In conjunction with businesses and consumers, investors too are relying on sustainability linked matrices to enable decision making. The EU and the US are already pushing vigorously for Paris compliant businesses. Several Indian companies are also taking a lead in announcing net-zero targets for raising environmental, social, and governance (ESG)-linked funds.

Source: The Economictimes

UP betting big on manufacturing to achieve trillion-dollar economy target

Uttar Pradesh is UP betting big on manufacturing to achieve trillion-dollar economy target betting big on the manufacturing sector to achieve the goal of becoming a trillion-dollar economy by 2027.

At present, the state’s gross state domestic product (GSDP) is estimated at $230 billion, while the contribution of the manufacturing sector is pegged at about 14 per cent, which the government is looking to boost by threefold to 45 per cent. To achieve the target, the government is laying greater emphasis on setting up and expanding new industries.Seven thrust manufacturing verticals identified by the state include leather, textile, toys and games, defence, electronics, machinery, and electric vehicles. Recently, Chief Minister Yogi Adityanath presided over a high-level meeting with the top echelons of the industrial development department to sketch a broader action plan in this regard. “The state is making efforts to increase the manufacturing sector contribution to GSDP by more than three times in the next five years,” he underlined. Likewise, the state needs its annual growth rate to surge by 30-35 per cent to reach the trillion-dollar milestone by 2027. Besides, the government has estimated that the quantum of fresh investment in the economy needs to be ramped up from the current level of 42 per cent to 47 per cent of the GSDP as well.UP is among India’s top producers and exporters of toys, leather goods, and textiles in the country. According to the state’s projections, UP’s exports could reach $246 billion by 2027 if the state could capture just 5 percent of the global export market of leather, textile, toys & games, defence, and electronic products.Moreover, the state could achieve an economy of $14 billion by catering just 10 percent of the global electric vehicles export market. At present, China exports up to 29 per cent of the world’s textiles/clothes compared to India’s 3 per cent; whereas UP exports up to 23 per cent of India’s textile exports.

Similarly, China accounts for 32 per cent of the global leather exports compared to India’s 2 percent; whereas UP’s contribution to India’s leather exports is 43 per cent. China exports 58 per cent of the global toys and sporting products, whereas India only exports 0.4 per cent, while the contribution of UP in the national export basket is about 32 per cent. In fact, the state is eyeing to position the UP export basket in the key markets that China caters to in the Asian, African, and Latin American markets.

Source: The Business-standard

Bihar govt to begin registration process for Mukhyamantri Udyami Yojana from Dec 1

The Bihar government on Wednesday notified that the intake of new applications for Mukhyamantri Udyami Yojana will begin online from December 1, 2022 on the portal of the scheme.

As per reports, a total of 5000 applicants for all trades, 2000 for textile-leather industries, 1000 for BIADA industrial areas, and 8000 for textiles and food processing will be able to avail the benefits of the scheme. The Udyami Yojana is an initiative of the Bihar government aimed at reducing high unemployment rates by promoting and helping diverse social groups set up their own businesses.

Under this scheme, the state government will provide a loan of Rs. 10, 00,000 (Rupees Ten lakh) to the selected beneficiaries. The beneficiaries will have to repay only Rs 5,00,000 on a zero per cent interest basis; out of the total financial aid. The rest of the amount will be covered by the state government. The Udyami Yojana online was first released in 2018, and it was exclusively open to people of the SC and ST castes. It was re-launched in 2019, with the addition to the older ones of most backward classes.The Bihar government for this scheme has initially allotted a budget of 102 crore rupees.

Source: The Knnindia

Active companies in India close to 15,00,000, registrations fall in Sept

There was an overall decrease of 6.42 per cent in the number of new registrations in September 2022 compared to previous month, coinciding with the launch of version 3 of the new MCA portal. Several industry experts said that the decline could be because of system glitches in the portal. While the government has maintained that the portal has been functioning, company secretaries in various cities were seeking exemption from late fees for delayed filing due to errors on the new portal.

Source: The Business-standard.

Madhya Pradesh aims to contribute $550 bn to India's GDP by 2026: Shivraj Singh Chouhan

Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Thursday said the state's contribution to India's economy will reach $550 billion by 2026 as the country is expected to become a $5-trillion economy. Chouhan said the state's gross domestic product (SGDP) is growing at 19.67 per cent this year and it has been attracting investments at a faster pace. "Prime Minister Narendra Modi has taken a pledge to make India a $5-trillion economy. It will be achieved when states do their part. So we will be contributing $550 billion to the country's economy by 2026. We have made a road map to accomplish this (target), and attracting investment is a part of this plan," Chouhan told reporters on the sidelines of an event here. At 'Investment opportunities in Madhya Pradesh' event hosted by industry body CII, the chief minister also urged the investors' community to invest in Madhya Pradesh. The event comes ahead of a two-day global investors' summit which is scheduled to be held in Indore beginning January 11 next year. The chief minister said that Madhya Pradesh offers a host of benefits to new businesses, which include easy availability of land and strong infrastructure support. The state does not have any kind of industrial unrest. At the same time, there is an abundance of skilled manpower here, Chouhan said. He said there are immense opportunities for investment in areas such as food processing, textiles, pharmacy, automobile, tourism and warehousing sectors, among others. And these segments are attracting investment as well. The chief minister said that he has held meetings with business houses such as Reliance, Mahindra & Mahindra, Hindustan Unilever (HUL) and BPCL and during the course of the day will be meeting with other companies as well. According to the state government, the state's strategic location, strong resources, innovative and proactive policy approach and industrial corridors are the other key differentiators.

Source: The Deccanherald

FISME joins hands with South Korea’s Yangsan Chamber of Commerce and Industries to support MSMEs in both the countries

Ease of Doing Business for MSMEs: The South Korean delegation also had business-to-business (B2B) meetings with members of FISME on sectors such textiles, clothing, towels, umbrellas, bath products, leather and others.Ease of Doing Business for MSMEs: Federation of Indian Micro, Small and Medium Enterprises (FISME) signed a Memorandum of Understanding (MoU) with Yangsan Chamber of Commerce and Industries (YCCI) of South Korea to support and strengthen MSMEs in both the countries as per a report by the Knowledge and News Network (KNN). As a part of this agreement, FISME will help the entrepreneurs based in Yangsan city to form business ties with the Indian small and medium enterprises (SMEs). S.K. Jain, Vice President of FISME; Park Byung-Dae, YCCI Chairman and Na Dong-Yeon, Mayor of Yangsan city have signed the MoU. “Large companies can create their presence in India on their own. However small companies will need support through industry associations. This is where FISME will play its role through this partnership formalised today,” said Jain while addressing the delegation. Hailing the agreement signed with FISME, the Mayor of Yangsan said that the agreement signed with FISME will lead to a greater path of opportunities, reported KNN.“I am certain that we will have better economic performance and I see Indian SMEs and South Korea collaborating in the near future with our efforts,” the Mayor said. He further stressed on economic cooperation and collaborations to explore opportunities for companies in both the countries. High level of technology, especially in hardware and India’s large consumer market will create several portunities for both countries, added a spokesperson from YCCI. Also Read: NBFC-MFIs’ profitability likely to remain lower than pre-Covid level in FY23: CareEdge RatingsThe Mayor said, “The partnership with FISME will give us a lot of help to collaborate and cooperate for the longer term.” He further expects to get into a detailed discussion on the business environment and new opportunities in depth.”The South Korean delegation also had meetings with members of FISME on sectors such textiles, clothing, towels, umbrellas, bath products, leather and others.

Source: The Financialexpress

INTER NATIONAL:

Textile, Apparel and Leather Investment Forum gets underway in Kigali

Stakeholders in the textile, apparel and leather sector from across Africa have convened in Kigali seeking to boost their markets and business to business partnerships. At the Textile, Apparel and Leather Investment Forum (TALIF), the first of its kind sector-specific investment forum taking place in Rwanda from Wednesday, November 9-11, investors and businesspeople are discussing bottlenecks in the value chain, seeking to leverage the African Continental Free Trade Area (AfCFTA).The TALIF is an annual conference that brings together local and international manufacturers and wholesalers as well as policymakers. It is organised by ACHIEVAZ Ltd, a local consulting firm that focuses on private sector development and organises corporate events. This year’s conference is convening under the theme “Bridging Textile and Leather Investment Gaps in Africa.” “Forums like TALIF provide an opportunity for foreign investors to get to know how the Rwandan sector is performing while establishing connections with the local players,” said Germaine Mukashyaka, the chairperson of Rwanda Leather Value Chain Union. “Rwandan businesses also learn the best practices from those from foreign countries. Currently, Rwandan textile and leather businesses import most of the fabrics they use, which increases the cost, hence affects their pricing. For the Rwandan leather sector to develop, Mukashyaka said, the construction of Bugesera leather park should be completed in order to accommodate factories, tanneries, which will increase employment and decrease the cost of production. The Investment also includes a series of business-to-business (B2B) sessions, three-day exhibition and panel discussions slated for Friday, that will table several issues affecting the sectors. This edition is dominated by Ethiopian leather producers who are looking forward to investing in Rwanda taking good advantage of the absence of tanneries. For the African textile and leather sector to develop, experts say the current challenges need to be fixed. “The main challenges are structural, skills gap, and market linkage. We have to come together as a continent and explore the AfCFTA. We need to explore these opportunities in the leather sector to boost intra-Africa relationships,” said Solomon Getu, the secretary general of Ethiopia Leather Industry Association. Getu said that Ethiopian investors were considering investing in Rwanda’s leather industry, eying a conducive business environment. “Ethiopians are here to see the investment opportunities. We now have a potential to invest in Rwanda because there are materials, that is the livestock population.” To boost market linkages, Getu said the manufacturers and players in the hides and skins processing industry need to network and promote each other through business-to-business engagement, with the support of government policies. The TALIF is expected to result in collaborations, synergies and boosted information sharing. “As investors in the leather and textile industry, meeting with peers from other countries enables us to learn from them and see what is needed to improve our production,” Juvenal Gatorano, a Rwandan shoemaker, said. “We need to utilize the African continental market in order to increase our production and create more jobs.” The TALIF is a platform endorsed by the Ministry of Trade and Industry (MINICOM), organized in partnership with the Rwanda Convention Bureau (RCB). Next year’s forum will take place in September.

Source: The Newtimes

China's textile company to invest $60.85 mn in BEPZA Economic Zone

Chinese firm Kaixi Lingerie Bangladesh Co Ltd has signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) to set up a composite garments industry in BEPZA Economic Zone (EZ) with an investment of $60.85 million. The company plans to produce 30 million pieces of lingerie items and textile (fabric), accessories, hanger, and foam only for its own consumption for manufacturing and exporting lingerie. The factory will create employment opportunities for 11,000 Bangladeshi nationals. Xiao Hongxi, director of Kaixi Lingerie Bangladesh thanked BEPZA to allot plot in BEPZA EZ and processing its project very quickly. BEPZA executive chairman major general Abul Kalam Mohammad Ziaur Rahman congratulated Kaixi Lingerie for choosing BEPZA EZ as its investment destination. He assured the new investor to provide all sorts of support of BEPZA for setting up the industry and starting operations. Abul Kalam urged the investors for the optimum use of land during the construction of the factory. He also requested to keep such provisions in the factory building so that they can use its rooftop for producing renewable energy.

Source: Fibre2Fashion

'China Brand' in spotlight at Canada's apparel and textile show

The largest show of its kind in North America — Apparel Textile Sourcing Canada (ATSC) — which had moved online for the past two years due to the pandemic, finally returned in person to Toronto. The three-day exhibition (Nov 7-9) attracted 2,000 attendees and more than 150 textile and garment enterprises from China, India, Bangladesh, Pakistan, South Korea, Mongolia, Vietnam, Canada, and the United States to the Toronto Congress Centre. China was represented by 60 exhibitors. For the third year, the eye-catching "China Brand" pavilion continued to introduce high-quality Chinese apparel and textile brands to the Canadian market. On hand were Aparso, V Roc V, Bella Fitness, Rion Sports, and TianThai Sports, makers of sportswear and outdoor clothing. There was sweater brand Evergreen; suit brand Beyond Garments; printing and dyeing brand Mizuda; China-chic brand Wanshun; and Changshu Garments Town, one of the largest apparel markets in China. China's provinces of Hubei and Zhejiang brought 20 high-quality textile and garment suppliers to the Canadian show, respectively. Fourteen of the Chinese manufacturers attended the Toronto trade show in person, while the others participated virtually and sent their product samples to ATSC, with the assistance of local Canadian representatives onsite. According to the China Chamber of Commerce for Import and Export of Textiles (CCCT), one of the ATSC sponsors, the "China Brand" Pavilion focused on bringing China-chic design, zero carbon materials and fabrics that reflect the latest R&D and brought updated designs and fashion to the professional buyers attending the trade show. There were many new product launches and innovative technologies, including China-chic design, degradable materials and anti-wrinkle fabrics. On display were organic materials made of coffee fiber and five-year degradable packaging materials launched by Aparso; zero-carbon cotton fabrics by Mizuda; and three-dimensional embroidered flight jackets by V Roc V. Through providing diversified procurement services, international design and sustainable concepts, the brands are ready for a greener and more sustainable textile industry. "This was an exhibition that focused on smart, sustainable, innovative, and eco-friendly projects, a perfect showcase of the textile industry from concept to product, from assembling line to daily life, and a bold attempt to explore the future of the textile industry with top-tier brands and experts," CCCT states on the ATSC website. Liu Linlin, commercial counselor of the Chinese Consulate General in Toronto, who attended the opening ceremony, stressed that Chinese textile and apparel enterprises are actively seeking diversified channels to reach customers despite the tightening economic and trade situation in the global economy. "In 2021, Canada and China bilateral trade reached US$82 billion, a year-on-year increase of 28 percent. From January to September 2022, China's textile and apparel exports to Canada amounted to US$3.852 billion, which demonstrates the high complementary nature between China and Canada in this field," Liu said. Liu noted that China is pursuing a more proactive strategy of opening-up. As time goes on, China has been opening up across more areas and in greater depth, which provides a sound business environment for Canadian companies. "I encourage Canadian companies to explore more about China through this event and develop more in-depth cooperation with your Chinese counterparts," he added. A series of professional forums featured industry experts who discussed topics such as sustainable development, supply chain security, and digital marketing in the textile and apparel industry. They talked about bringing the world's cutting-edge colors and fabrics to the Canadian textile and apparel market and providing ideas and inspiration for the development of the industry.

Source: The Chinadaily

RCEP to help boost Vietnam’s engagement in supply chains: Report

A report on the Regional Comprehensive Economic Partnership (RCEP)’s impacts on the shaping of supply chains in Vietnam was released by the National Centre for Socio-Economic Information and Forecast (NCIF) and Konrad-Adenauer-Stiftung Vietnam on November 10.
Luong Van Khoi, Deputy Director of the NCIF under the Ministry of Planning and Investment, cited the report as saying that the RCEP will generate many positive impacts on regional economies, helping raise the region’s income by some 0.6% by 2030, equivalent to 245 billion USD each year, and create 2.8 million jobs annually. Recent studies also pointed out that Vietnam will benefit much from this agreement, he said, elaborating that the World Bank forecast the country’s GDP will increase by about 4.9% and exports 11.4% by 2030.
Apart from the commitments of a traditional free trade agreement (FTA), the RCEP also includes those on e-commerce, telecommunications, competition, small- and medium-sized enterprises (SMEs), and public procurement, among others. The most important thing may be the harmonisation of rules of origin, which enables the accumulation of origin, creating many chances and benefits for intra-bloc exports, Khoi noted. The report said due the FTAs previously signed among many member countries, some groups of commodities like electronic components, textiles and garments among RCEP members have already benefited from very low tariffs, so this deal’s impacts are inconsiderable. However, tariffs have been reduced for some goods whose supply chains Vietnam has engaged deeply into such as textiles, garments, automobiles, and some electronic products. The application of consistent rules of origin under the RCEP will help the country boost its participation in regional supply chains. The shift of supply chains to Vietnam that has already been taking place thanks to bilateral FTAs or within the ASEAN Plus 6 framework will be further promoted by the RCEP. Foreign direct investment (FDI) inflows are also expected to grow even more when major investors in the region are stepping up specialisation to develop supply chains, according to the report. It also pointed out that the RCEP will provide opportunities for Vietnam to improve added value and productivity by boosting market expansion, attracting investment to upstream manufacturing sectors, and enhance specialisation in the industries where Vietnam has strengths. That will in turn attract more FDI under supply chains to the country and help domestic enterprises further engage in global chains. The RCEP was signed in 2020 between the Association of Southeast Asian Nations (ASEAN) and five partners, namely Australia, New Zealand, China, Japan, and the Republic of Korea. Taking effect since January 1, 2022, it is the largest FTA at present, covering 30% of the global GDP.

Source: The Vietnamplus

Apparel industry calls for moreFTAs to maintain resilient performance

The Joint Apparel Association Forum (JAAF) has urged the Government to urgently expedite negotiations on Free Trade Agreements (FTAs) to enhance the industry’s resilience and global competitiveness amid rising fears of a global economic recession.

Elaborating on its rationale, the Association noted that FTAs have become an integral part of the global trading system, particularly over the past three decades. In that time there has been an exponential increase in FTAs notified to the WTO - from just 19 in 1990 to 292 by January 2019. In the last decade, Asian countries in particular have understood the crucial value of Free Trade Agreements as a means to liberalize trade and investment. Vietnam for example has an impressive growth trajectory in exports that correlates closely with the FTAs entered into by them, with the Vietnamese government making necessary commitments to ensure compliance. Sri Lanka currently faces the risk of losing out on trade benefits enjoyed by regional peers as countries like Indonesia, Vietnam and India are already in advanced FTA negotiations with the European Union. Indonesia having started discussions as early as 2016 enjoyed leeway to restart trade negotiations to suit new realities with the breakout of the pandemic. Sri Lanka is a member of just two bilateral trade agreements and three regional trade agreements. In order to harness the power of trade to spark an economic revival, JAAF noted that all stakeholders would have to work together in order to improve the utilization of Sri Lanka’s existing agreements, in addition to negotiating new concessions. According to the World Bank, trade as a percentage of the GDP of the world was 26.5% in 1970 and by 2020 it increased to 52%. This illustrates how countries around the world have understood the value of trade in promoting competition, achieving prosperity and sustainable growth in the long term.

Sustaining resilience

Merchandise exports of which apparel is the largest contributor, has been the backbone of the island’s economy since the wake of the pandemic and the economic crisis, particularly in terms of generating much-needed foreign currency. Notably, merchandise exports secured a 2.25% Year-on-Year (YoY) increase in July up to US$ 1.13 billion, primarily owing to improved export earnings from the apparel and textile sector.

Despite increasingly volatile local and global conditions, the sector continued to deliver outstanding results with apparel exports soaring to a record high of $ 451.46 million in September. However, JAAF’s membership have been calling for caution as international market conditions continue to tighten, particularly in Sri Lanka’s most valued export markets. Sri Lanka’s top five apparel export markets are the United States, United Kingdom, Italy, Germany and the Netherlands. Currently, the US, EU and the UK comprise about 86% of Sri Lanka’s total exports. However, the rise in inflation and a significant risk of winter gas shortages in the island’s primary export markets such as the UK and EU has severely compromised the industry’s ability to solely rely on these countries to maintain its commendable export performance. According to JAAF, the signs of a slowdown are already emerging, including a drop in foreign orders to the industry.

Source: The Dailynews

Italian firm eyes to expand in ME

The House of Lyria, an Italian company specialised in premium fabric, is looking to expand its footprints in the Middle East region as it sees a very huge potential in the local market. The 20-year old company, who supply fabric to global fashion brands and interior designers, is currently showcasing its products at the Downtown Design in Dubai. Riccardo Bruni, Founder and Chairman of The House of Lyria said,” This is our first time participation in this event and we want to utalise this platform to present our fabric to this market and make new business relationships. We see a very high demand for our textiles in this region especially in interiors.”Bruni, a traditionalist by nature, added,” Our company is based in the Tuscan city of Prato, the heart of Italy’s textile industry. We produces original, timeless fabrics unlike any in the region.” Riccardo Bruni is an auteur of textiles who merges tradition, experimentation and emotion to create materials with a wholly unique character. Lyria has been working for over 20 years with the world’s leading designers and fashion houses throughout Europe, the United States and Asia. About the company global growth Bruni said,” We exports fabric to all international brands across the globe. Our business is expanding every passing day. The company is currently growing with a growth rate of 15 per cent annually. Bruni said that he gives very high importance to natural bers such as wool, linen and cotton, trying unusual combinations and unconventional looming techniques to create interesting textures and to give fabrics a longer life. The House of Lyria entered the world of interiors in 2021, launching its throws and cushions collection and creating fabrics for use in private residences, yachts, boutique hotels and other commercial projects by leading architects and interior designers.

Source: The Gulftoday