The Australian Parliament has recently approved the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA). Australia is an important garment market for India. On the other hand, Australia is a major cotton producer, and the South Asian country can import cotton from it in case of shortage or high price in the domestic market. India’s commerce and textile minister Piyush hopes that the bilateral trade agreement will give a big boost to several sectors, including textiles. Australia supplied textiles including cotton worth $330.245 million in JanuarySeptember 2022. Cotton (HS Code 52) shipment was valued at $221.680 in the same period which was 67.13 per cent of the total. Wool, horsehair yarn and woven (HS Code 51) import was $106.439 million (32.23 per cent), according to Fibre2Fashion’s market insight tool TexPro. During the same period, Australia imported apparel worth $242.995 million from India. The import of dresses was valued at $48.762 million (20.07 per cent), T-shirts $44.726 million (18.41per cent), shirts $38.844 million (15.99 per cent), trousers & shorts $30.308 million (12.47 per cent), and baby wear $19.707 million (8.11 per cent), as per TexPro. Australia had imported apparel worth $284.756 million in 2021, $203.664 million in 2020, $235.399 million in 2019 and $203.047 million in 2018. The developed country’s supply of cotton to India stood at $153.677 million in 2021, $69.588 million in 2020, $154.858 million in 2019 and $252.897 million in 2018.
Source: Fibre 2 Fashion
The state’s handloom and textiles department is already in contact with entrepreneurs, industrial organisations, banks and various other stakeholders to motivate them for investment. A helpline has also been set up for this by the Handloom and Textiles Department. Aiming to give a major boost to the textile industry of the state, the Uttar Pradesh government is eyeing an investment target of Rs 2000 crore in the industry in the forthcoming Global Investors Meet 2023. The Yogi Adityanath led UP government is already working towards creating a Brand UP and the GIS is expected to give a major push to this. The state’s handloom and textiles department is already in touch with investors from across the globe. Assistant Commissioner, Handloom and Textile Industries, Varanasi Zone Arun Kumar Kuril said that the department will give information about its policies, plans and programmes to the investors participating in the Global Investors Summit. Along with this, all the policies and programmes of Uttar Pradesh Textile and Garment Policy-2022 will be promoted extensively. The department is already in contact with entrepreneurs, industrial organisations, banks and various other stakeholders to motivate them for investment. A helpline has also been set up for this by the Handloom and Textiles Department. It may be recalled that through the Global Investors Summit, the UP government is focussing on making Uttar Pradesh a global investment hub. By changing the old policies, the government has already announced new attractive, easy, simple and convenient MSME Policy-2022, Textile Policy-2022 and Industrial Policy-2022, which is friendly to investors. Financial opportunities for young men and women to start new employment There will be immense possibilities of new employment in the field of establishment, design and marketing of handloom and powerloom. The government's new industrial policy and the Global Investors Meet are going to prove very useful in making Uttar Pradesh a one trillion economy
Source: Business World
Indian textile and apparel market has the potential to grow to $250 billion by 2025-26, as per an FICCI-Wazir Advisors report. To achieve this target and build a sustainable textile industry going forward, Indian businesses need to leverage government support schemes and global buyer needs of sustainability, and align with value chain traceability. Indian textile industry needs to focus on government schemes like Production Linked Incentive Scheme (PLI), PM Mega Integrated Textile Region and Apparel (MITRA) Scheme, export incentives, etc to invest in new products, build scale of operations, and improve competitiveness, suggested the report titled 'Building a Roadmap for $250 Billion Sustainable Textile Industry'. The key global trends impacting the textile and apparel industry in the report included high focus on sustainability and circular fashion, the 'China plus 1' strategy of global brands providing opportunity for countries like India to increase their export share, increasing need for digitalisation across the fashion supply chain, and growing consumption of synthetic-based textile and apparel. The FICCI-Wazir Advisors report also stated that industry should also focus on automation and digitalisation to improve processes and efficiency levels; bring strong focus on people and skill development, start leveraging free trade agreements (FTAs) to tap new markets; develop capabilities and build capacities in synthetic textiles and technical textiles, and adopt global best practices for manufacturing excellence. The government should bring additional support to the existing textile clusters which will help build capabilities and allow MSMEs to compete globally. Released during the Federation of Indian Chambers of Commerce & Industry (FICCI) TAG 2022 Annual Textile Conference, the knowledge report highlighted the key global trends, market scenario, and opportunities for India in the textile and apparel market. It further elaborated the key initiatives that India will need to achieve the target of $250 billion by 2025-26 and build a sustainable industry going forward. Adopting good regulatory practices, increased focus of quality, compliance issues with enhanced investments and continuous engagement with government key to achieve target, said Ajit Chavan, secretary textile committee, ministry of textiles, government of India. He also suggested that state government's textile policy should include parameters of quality and compliance beyond incentives. The Indian textile and apparel market is estimated at $153 billion in 2021, with domestic market contributing $110 billion and exports constituting $43 billion, as per the report. Global apparel consumption in 2021 is estimated to be around $1.5 trillion, and it is estimated to reach $2 trillion by 2025. Global textile and apparel trade is around $869 billion and expected to grow at 3.5 per cent compound annual growth rate (CAGR) to reach $1000 billion by 2025-26.
Source: Fibre 2 Fashion
The new textile policy will supersede the previous Haryana Textile Policy 2019 and it aims to promote value-added textile activities with suitable policy interventions to harness the potential of the entire textile value chain in the state, it said. The estimated budget for the policy is Rs 1,500 crore with capping for capital incentive cases, it said. Chandigarh: The Haryana Cabinet on Thursday approved a new AatmaNirbhar Textile Policy 2022-25, which aims to attract investment worth Rs 4,000 crore and generate 20,0000 new jobs in the state. A decision in this regard was taken in the meeting of the council of ministers held under the chairmanship of chief minister Manohar Lal Khattar here, said an official statement. The new textile policy will supersede the previous Haryana Textile Policy 2019 and it aims to promote value-added textile activities with suitable policy interventions to harness the potential of the entire textile value chain in the state, it said. The estimated budget for the policy is Rs 1,500 crore with capping for capital incentive cases, it said. The 'Haryana AatmaNirbhar Textile Policy 2022-25' aims at fostering an ecosystem of self-reliance and innovation by offering a robust incentive framework for backward integration, enhanced production of man-made fibres, promoting circular economy, attracting investments in weaving, knitting, processing, ready-made garments, apparel making, technical textiles, integrated units, textile parks, textile clusters, etc. The 'Haryana AatmaNirbhar Textile Policy 2022-25' aims at fostering an ecosystem of self-reliance and innovation by offering a robust incentive framework for backward integration, enhanced production of man-made fibres, promoting circular economy, attracting investments in weaving, knitting, processing, ready-made garments, apparel making, technical textiles, integrated units, textile parks, textile clusters, etc. It will have a special emphasis on value addition, employment generation and productivity enhancement, the statement said, adding that the policy was in line with the "5F" vision of the prime minister -- 'Farm to Fiber to Factory to Fashion to Foreign'. The policy aims to attract investment in the textile sector to the tune of Rs 4,000 crore, generate 20,000 new jobs in the textile sector across the value chain, achieve higher and sustainable growth in the entire textile value chain with emphasis on innovation, backward integration and adoption of clean and green technologies, it said. It also provides an impetus for diversification of Haryana's textile industry to the 'B', 'C' and 'D' category blocks and on the promotion of the sunrise sector within textile i.e., technical textiles, circular economy, open end spinning etc. and support setting up textile parks in the state," the statement said. It also targets to support the industry, adopt world-class state-of-the-art technology in conformity with the environment and social standards, encourage the industry to innovate, develop new designs, diversify and enhance value addition and facilitate and promote sunrise sectors like technical textiles in the critical areas such as defence, automobiles, construction, etc. The policy further aims to support the industry with a skilled workforce and create additional employment opportunities and promote the export of all types of textiles with a special thrust on products such as garments, made-ups, technical textiles etc.
The authorities are probably going to replace its flagship incentive scheme for capital investments in textiles and clothes – Amended Technology Upgradation Fund Scheme (ATUFS) – with one comparable to the production-linked incentive (PLI), to promote home improvement and manufacturing of textile equipment. The threshold for textile manufacturing models to be eligible for sops below the proposed scheme could be funding in plant and equipment of ₹1 crore to ₹50 crore for MSMEs and above ₹50 crore for non-MSMEs. Incentives could be supplied primarily based on the turnover achieved after making the threshold funding in modernisation by way of set up of benchmarked expertise. Incentives of up to 60% primarily based on the funding and turnover standards could possibly be doled out throughout weaving, knitting and spinning, amongst different textile segments. Officials stated that weak hyperlinks in the textile worth chain are being recognized and an announcement is probably going in the upcoming Budget 2023-24. “The ATUFS is being reviewed and a new scheme could be announced soon,” stated an official. ATUFS was notified in January 2016 with an outlay of ₹17,822 crore to mobilise new investments of about ₹95,000 crore. It has helped create employment for about 3.5 million until 2022. The scheme expired on March 31, 2022. The authorities had carried out a ‘expertise hole evaluation’ and recognized 60 important elements utilized in the textile business which aren’t indigenously manufactured and which it goals to make in India. Under the proposed scheme, turnover achieved from job work in choose segments could be accounted for whereas calculating incentives and solely the merchandise manufactured by the registered firm could be eligible. The authorities had final yr permitted the ₹10,683-crore PLI scheme for artifical fibre (MMF) attire, MMF materials and merchandise of technical textiles. The second version of the PLI for textiles is underway whereby incentives are doubtless for manufacturing of clothes and residential textiles corresponding to blankets and mattress spreads, and textile equipment like lace, button, and zippers.
Source: Textile Value Chain
Fast-moving consumer goods (FMCG) firms such as Hindustan Unilever, Britannia, ITC, Marico and Emami have indicated in their recent earnings calls that input cost pressure is set to ease in the next two quarters. Prices of groceries, daily essentials and apparel are likely to fall over the next two quarters as input costs are expected to decline, spurring sales in the process, according to consumer goods makers. Fast-moving consumer goods (FMCG) firms such as Hindustan Unilever, Britannia, ITC, Marico and Emami have indicated in their recent earnings calls that input cost pressure is set to ease in the next two quarters. The companies said they will pass on the input cost benefits by reducing prices, increasing pack weights or running consumer offers. Commodity prices have fallen considerably in the past few weeks/ Cotton prices have declined 30% in the past four to six weeks, easing pressure on apparel makers, while in the last fortnight cooking oil wholesale prices have declined 12% for rice bran oil, 5% for sunflower oil and 7% for groundnut oil. Brent oil prices touched a fresh 10- month low last week which augurs well for FMCG companies as many raw materials are linked to the commodity. Vegetable prices have also cooled down with seasonal vegetables coming into the market. In some cases, like onion, prices have plunged more than 50% since Diwali. Wholesale onion prices crashed to Rs 13-14 per kg on Monday at the benchmark Lasalgaon market in Maharashtra, from Rs 30 per kg in the first week of November, aided by good supplies from Madhya Pradesh and Karnataka. Emami vice chairman Mohan Goenka said the drop in input prices will lead to a 150 basis points expansion in gross margins sequentially in the next two quarters. "Consumers can expect promotional offers in large packs in the next two quarters aided by the drop in input cost, but for sachets it is difficult since we did not tamper (with) prices or volumes even during the peak of inflation," he said. A basis point is a hundredth of a percentage point. ITC Ltd executive director B Sumant said wheat prices are likely to decline in the next quarter when the harvest happens, as the area under cultivation has been good. "There has been some reduction in sugar prices. Edible oil prices have moderated. So, with some hope of moderation in inflation as well as enhanced farmer realisation, consumption is likely to pick up in the second half," he said. The drop in input costs as well as commodity prices is cyclical as it is linked to an improvement in agricultural production. This time, it is aided by a recessionary trend in the West which is hurting demand for many products. Surging inflation resulted in an adverse impact on demand for consumer products in the past four to six quarters, as a large section of consumers with lower disposable incomes, especially in semi-urban and rural markets, cut down or deferred consumption. For instance, Britannia managing director Varun Berry told analysts earlier this month that there has been 32% inflation in the past seven quarters and the company increased prices 20.5%. Most FMCG companies have increased prices 2 30%. Value fashion retailer VMart Retail managing director Lalit Agarwal recently told analysts that cotton prices fell 30% in the past 1.5 months, though they were still above the pre-Covid levels. He said while the company has already cut prices of the current autumn-winter line, the next spring-summer season will see further reduction of apparel prices. In the past two months, companies slashed prices or increased grammage for soaps, edible oil and large packs of packaged food to pass on the benefit to consumers from a drop in prices of palm oil, edible oil and crude oil. BV Mehta, executive director of edible oil industry body Solvent Extractors' Association, said while the international prices of cooking oils are stable, there is some downward pressure on domestic cooking oil prices amid expectations of robust production of soybean, groundnut and cotton seeds, and the ongoing sowing of mustard is also expected to be good. Electronics prices are expected to remain stable and companies have indicated they will not shy away from price cuts to pass on the benefits in case input costs decline further if the exchange rate remains favourable. "Commodity prices have cooled down, but the rupee has depreciated to 82 against the dollar, nulling the impact since the earlier benchmark was Rs 78. Otherwise, we could have dropped prices," said Godrej Appliances business head Kamal Nandi. India's wholesale and retail inflation fell in October after remaining high for several months - while retail inflation, measured through Consumer Price Index, fell to a three-month low of 6.7%, Wholesale Price Index was at a 19-month low of 8.39%. S&P Global ratings on Monday cut India's economic growth forecast for current fiscal to 7% from 7.3% earlier but said the domestic demandled economy will be less impacted by the global slowdown.
Source: Economic Times
India’s online marketplaces are set to triple in the next five years, presenting opportunities for fashion companies who desire access to one of the world’s fastest growing economies. Research from Bain & Company and Accel shows India’s marketplaces will reach 350 billion dollars in gross merchandising value (GMV) and contribute more than 5 percent to India’s GDP. In a report titled The Rise of Digital Bazaars in India, more than 15 million micro, small, and medium enterprises (MSMEs) could grow their businesses online, creating 7 million jobs by 2027. 15 million companies will be active on marketplaces Arpan Sheth, Partner at Bain & Company and co-author of the report said “Marketplaces have contributed to India’s growth story by offering greater access to capital and innovative financing solutions for traditionally underserved segments; enabled MSMEs to transact online, with an increased pan-India reach; and have provided employment opportunities to more than 3 million gig workers in India.” "India has cultivated a vibrant and successful marketplace landscape, demonstrated by the sheer breadth of more than 300 funded marketplaces across multiple categories like retail, education, healthcare, travel, financial services, etc." Investors are eyeing marketplaces Not just for buyers and sellers, marketplaces have seen significant traction with investors in recent years, having received cumulative funding of 30 billion dollars between 2018 and October 2022. In 2018 the most popular marketplaces were B2C but it is a growing B2B e-commerce marketplace channel that is booming, taking 31 percent of deal volumes so far this year. Prabhav Kashyap, Partner at Bain and Company and co-author of the report said, “The future of marketplaces is robust and with strong growth in their GMV and continued interest from investors, we expect the segment to see ample opportunities and a strong pick up." India is a fast growing market Anand Daniel, Partner at Accel and co-author of the report said, “India is one of the world’s fastest growing and most dynamic emerging markets. Our report on the country’s digital bazaars reveals the extent to which marketplaces have grown in this market across both business-to-consumer and business-to-business segments." While India is the world’s second-largest producer and exporter of textiles and garments, it also has a growing consumer appetite for fashion, with it’s e-retail market set to reach 50 billion dollars in 2022. Rising affluence will fuel consumption and increase spending per shopper, says Bain, and is estimated to grow to 170 billion dollars by 2027. Currently India has the world’s third largest online consumer base. Rising affluence Fashion is one of the key growth categories along with personal care and general merchandise, expected to reach two-thirds of the e-retail market by 2027. Popular India marketplaces include Myntra, Amazon and Paytm Mall.
Source: Fashion United
While the PMI is high, official data released on Wednesday revealed that the manufacturing gross value added (GVA) contracted by 4.3% in Q2FY23. India’s manufacturing sector activity rose to a three-month high in November as new orders and exports expanded markedly in the latest month, according to a monthly survey released on Thursday. Posting 55.7 in November, up from 55.3 in October, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index signalled the strongest improvement in operating conditions for three months. The headline figure was also above its longrun average of 53.7. This is for the 17th consecutive month that the index remained above the 50-point mark, which separates expansion from contraction. While the PMI is high, official data released on Wednesday revealed that the manufacturing gross value added (GVA) contracted by 4.3% in Q2FY23. The PMI survey however revealed firms were strongly confident towards growth prospects, with optimism driving another round of job creation and restocking initiatives. Buying levels expanded at a marked and accelerated rate as firms also sought to benefit from relatively mild price pressures. Input cost inflation receded to the jointweakest rate in 28 months, while charges rose at the slowest pace since February, the survey noted. “Survey participants were also strongly confident in both the buoyancy of demand for their goods and their ability to further lift production in 2023. The level of positive sentiment recorded in November was the best in nearly eight years,” Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said. “Companies were also aided by a substantial cooling of cost pressures in November, a factor that prompted them to purchase more inputs and add to their inventories. The overall rate of input cost inflation slipped to the joint-lowest in 28 months.” Moreover, firms were strongly confident towards growth prospects, with optimism driving another round of job creation and restocking initiatives. Buying levels expanded at a marked and accelerated rate as firms also sought to benefit from relatively mild price pressures. On the jobs front, the survey said that employment rose solidly, and for the ninth month in a row. The S&P Global India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. Data collection began in March 2005.
Source: Financial Express
Bewakoof "aims to touch Rs 1,500 crore in revenues over the next five years. With this partnership with TMRW, Bewakoof will be leveraging varied capabilities to help blitz scale and grow its leadership position as the largest D2C apparel and Digital First brand in India," said a joint statement. TMRW, an Aditya Birla Group house of brands, on Thursday said it has invested Rs 200 crore for a majority stake in D2C brand Bewakoof. TMRW has acquired a majority stake of 70-80 per cent in Bewakoof, which was founded in 2012 by Prabhkiran Singh. Bewakoof "aims to touch Rs 1,500 crore in revenues over the next five years. With this partnership with TMRW, Bewakoof will be leveraging varied capabilities to help blitz scale and grow its leadership position as the largest D2C apparel and Digital First brand in India," said a joint statement. TMRW CEO and Co-founder Prashanth Aluru said: "We are excited to partner with the team at Bewakoof. It is an innovative brand in the casual wear space... With Bewakoof and other D2C brands in our portfolio, we see the leading Digital First brands of tomorrow disrupting & fueling E-commerce growth in India." Prabhkiran Singh said: "With this capital infusion, we will invest on brand building and expansion into Teens and Kidswear over the next 2 years." Earlier this week TMRW announced a partnership with 8 Digital-First lifestyle brands. "With these 8 brands on board, TMRW has achieved a revenue run-rate of INR 700 crore plus and is on a path to cross an annual revenue rate of INR 1500 crore plus in the next 12 months," it had said. TMRW is building India's largest portfolio of disruptor brands in the fashion & lifestyle space and enabling the next phase of direct-to-consumer (D2C) growth in India.
Source: Economic Times
Investors set to explore State’s textile manufacturing, traditional handlooms potentials in MIO 2022-the most awaited global investors’ summit of the year. The third edition of ‘Make In Odisha Conclave 2022’ is all set to be held at Janata Maidan in Bhubaneswar from 30th November to 4th December 2022 after a gap of three long years of COVID – 19 pandemic. Organised by Government of Odisha, the most awaited global investors’ summit of the year will see the gathering of several titans from across various industries, investors and other delegates looking to explore Odisha’s investment potentials and maximise them. As part of the Conclave, several sessions on various sectors will be held. One among six key focus sectors is Textiles and Apparels. With the purpose to showcase the opportunities and potential of Odisha in the Textiles, Apparels and Technical Textiles sector, there will be two sectoral sessions held on 2nd December 2022 to promote the Textiles and Apparels sector. The first session on “Textile and Apparel” will look at boosting the emergence of Odisha as the textile hub of Eastern India. The second panel discussion on “Sourcing of Handlooms and Handicrafts” will look at promoting and capitalising the global market potential of Odisha’s traditional handlooms and handicrafts. Following the sectoral sessions, a fashion show, organised by Boyanika in collaboration with NIFT, will take place on 3rd December 2022 to showcase the handlooms, textiles and apparels from Odisha. “The Government of Odisha has made all possible efforts to make this Conclave a grand success” said Dr. Arabinda Kumar Padhee, Principal Secretary to Govt. of Odisha, Handloom, Textiles and Handicrafts Dept. “I urge investors in the apparel and textile including technical textiles sector to come to Odisha and see the ecosystem and the investor friendly policy support for potential investors,” he added. Ahead of the event, Shovan Krishna Sahu, Director of Textiles & Handloom, Govt. of Odisha, said, “With leading industry players from apparel, made- ups and technical textiles segments and representatives involved across the value chain of Textiles manufacturing attending and participating in the deliberations, the sessions will witness the State Government’s commitment to the development of the sector.” The conclave will ignite to fill the gap between raw material production in the State to the finished product i.e. farm to fashion in coming years.
Source: Pragati Vadi
India needs to focus on apparel manufacturing and diversification of products in the textiles sector, an official of leading textile firm Arvind Ltd said on Thursday. The government also needs to incentivise apparel manufacturing by way of extending the PLI scheme which has been given to some other sectors, the company’s executive director Kulin Lalbhai said. Production-Linked Incentive (PLI) schemes for 13 key sectors are designed to create national manufacturing champions and generate employment opportunities for the country’s youth. Speaking virtually at a session organised by MCCI here, Lalbhai said, “India is good at making fabrics but not in apparel manufacturing. The country needs to focus on apparel manufacturing to move up in the value chain for which it has to be incentivised,” he said. India has a thriving textiles sector where the domestic market size is USD 100 billion and growing at a rate of eight per cent annually, he said. “This gives a good opportunity for the textile companies. There is also a need to diversify from cotton textiles to man-made fibres (MMF) which the world is moving towards,” Lalbhai said. The domestic market needs to grow as it provides an “exciting route for the textiles sector”, the company official said. To a query, Lalbhai said, “I do not see any Indian brand becoming a global ‘aspirational’ brand in the near future. The aspirational brands have emanated from developed economies. The most important thing is that Indian brands have to be relevant domestically.”
Source: The Print
The Việt Nam Textile and Apparel Association (VITAS) has set a goal of helping Việt Nam's textile and garment industry be more environmentally friendly by 2030. By 2023, the industry plans to reduce energy consumption by 15 per cent and water consumption by 20 per cent. Green growth is an important part of sustainable development. In recent years, enterprises in the textile - garment - footwear industries have paid special attention to this issue. According to Trương Văn Cẩm, VITA's general secretary, a greener textile and garment industry not only contributes to implementing the national strategy on green growth but also fulfils the requirements of large textile and garment import markets in the world, such as the European Union (EU). Vietnamese textile-garment and leather-footwear firms need to improve the sustainability of their production for export to the EU after the European Commission (EC) proposed the goods must comply with ecological design criteria. Earlier this year, the EC proposed a new strategy to make textiles more durable, repairable, reusable and recyclable, to tackle fast fashion, textile waste and the destruction of unsold textiles, and ensure their production takes place in full respect of social rights. Europe is a traditional and key market for Việt Nam's textile and footwear industries, especially with the EU-Việt Nam Free Trade Agreement (EVFTA). This is an issue that businesses must focus on quickly deploying if they want to exploit markets like the US or EU and other large markets. This will also help businesses develop sustainably and reduce production costs, Cẩm said. Thân Đức Việt, general director of Garment 10 Corporation, said besides green factories, another factor is green materials. Currently, many customers require that Garment 10 use natural and recycled materials so that it does not exploit more resources. The product must be self-decomposing after five to ten years of use - that is Garment 10's goal. He said this is not only the trend of production in the world but also the customers' requirements. According to VITAS, the industry's businesses have carried out many greening activities, such as replacing electric boilers, using rooftop solar power, and reusing wastewater. However, there needs to be more synchronism in greening among enterprises. Besides that, the major barrier is large investment requests and a need for incentive policies and support. Economic expert Nguyễn Minh Phong said that to accelerate the greening process, support from the State is also vital. In addition, businesses need to actively invest in upgrading machinery and technology. They include training and technical support programmes and policies on the increasing ability to approach credit capital for green investment projects, human resource development, and research activities for green growth. Export According to VITAS' report, in the first ten months, the textile and garment industry recorded about US$38 billion in export value, up 17.2 per cent on the year. President of the Vietnam Textile and Apparel Association, Vũ Đức Giang said the result was thanks to Việt Nam's participation in free trade agreements (FTAs). Those help Việt Nam diversify export markets. In addition, the textile and garment industry enterprises are accelerating the digital transformation in management and supply chain and catching up with the trend of greening and sustainable development by producing new yarn from hemp and wool. "Inflation, currency devaluation, and decrease in purchasing power of major countries are risks for the textile and garment. But those are also the pressure forcing Vietnamese textile and garment enterprises to seek and diversify export markets. Many businesses in difficulties are still growing in production, such as Việt Tiến Garment, Garment 10, Nhà Bè and An Phước," said Giang. The representative of VITAS said this year that the textile and garment industry would likely gain the export target of $42-43 billion. This industry hopes to overcome difficulties and challenges and sets out an ambitious target of an export value of $45-47 billion in 2023. According to VITAS, many businesses are now in a difficult period. For instance, they have reduced 25-27 per cent in orders from November to December this year and the first quarter of 2023. The reduction is more severe for enterprises processing garment products. In addition, they have also suffered great pressure from rising bank interest rates, raw material purchases and exchange rate differences. Another difficulty is the lack of labour. Enterprises with reduced orders must find other jobs to retain workers. "Many garment enterprises have had to make bags for supermarkets to have workers' jobs while waiting for the textile industry to recover next year," Giang said. "However, we expect a strong recovery will fall in the third and fourth quarter of 2023." "The industry has advantages to set up that target, such as FTAs as a driving force for attracting more foreign investment to Việt Nam, helping businesses diversify markets and improve business performance." For example, the textile and garment industry has often exported a small volume of products to Muslim countries. Still, the export to those markets is increasing because they shift some of their orders from Bangladesh and Myanmar to Việt Nam, Giang said. In addition, Việt Nam's textile and garment industry has been promoting reducing imports and increasing the localisation of domestic raw materials and accessories. That is the solution for the enterprises to be proactive in raw materials for the production of export products, he said. To overcome the difficulties, Giang has also proposed to the Government, ministries and sectors to consider cutting tax or a tax delay for enterprises this year. They should also find soft business loans to maintain production and labour stability. Lê Tiến Trường, general director of Việt Nam National Textile and Garment Group, states that the recovery of textile and garment demand is forecast from the third quarter and fourth quarter of 2023 due to a decrease in inflation. To increase competitiveness, Việt Nam's garment industry needs to prioritise supplying packages, producing both yarn and fabric and sewing. The industry also needs to carry out green production with recycled products to promote exports to European countries, Trường said.
Source: EIN News
The UK government recently decided to move forward with plans to build a secure energy future, creating cheaper, cleaner energy from British sources for domestic use. This includes continuing the revitalisation of the UK nuclear industry by confirming the first state backing of a nuclear project in over 30 years, part of the UK’s biggest step yet in the journey to energy freedom. The government’s historic £700 million stake in the Sizewell C nuclear power station in Suffolk is positioned at the heart of the new blueprint to Britain’s energy sovereignty, as plans to develop the new plant were approved yesterday, according to an official release. This is expected to create 10,000 highly skilled jobs and provide reliable, low-carbon power to the equivalent of 6 million homes for over 50 years. The approval came alongside the government’s continued commitment to develop a pipeline of new nuclear projects, beyond Sizewell C. To support this, the government is working to set up Great British Nuclear, the vehicle tasked with developing a resilient pipeline of new nuclear builds, with an announcement expected early in the new year. “The driving force that will power up this long-term plan is the Energy Bill, which is being driven forward in parliament, forming part of today’s once in a generation plan to put in place powers to shield Britain from global forces and secure energy for future generation,” the release said. The country has set a new ambition to reduce energy demand by 15 per cent by 2030. This is backed by a new £1 billion ECO+ insulation scheme, and a major expansion to the government’s public awareness campaign. All these will help households cut back on energy waste and deliver warmer homes and buildings and cheaper energy bills.
Source: Fibre 2 Fashion
Trade remains resilient due to cost, other advantages China's main foreign trade promotion agency said on Tuesday that it has recently approved 15 overseas economic and trade exhibition projects out of 35 such exhibitions planned to boost exports, which face downward pressure amid weak external demand and domestic COVID-19 flare-ups. In announcing the major trade promotions, the China Council for the Promotion of International Trade (CCPIT) also said on Tuesday that it remains confident about the steady and qualitative development of China's foreign trade. The CCPIT noted that it is actively promoting and approving overseas exhibition projects for key countries, industries and exhibitions, in order to help enterprises gain orders, expand their markets, and promote the stability and quality of foreign trade. The organization has approved the first batch of 15 trial trade exhibition projects in eight countries including Germany, the US and the UAE, between November and February 2023, Sun Xiao, spokesperson for the CCPIT, said at a press conference on Tuesday. The themes of the projects include textiles, auto parts, sports goods, electronics and consumer goods, with the exhibition scale ranging from 100 square meters to 10,000 square meters, Sun noted. According to a notice released by the CCPIT in early November, a total of 35 overseas trial trade exhibitions have been planned in 14 countries, including Iran, Germany, US, Canada, Mexico, Italy, Australia, France, UAE, Russia, Japan, India, Bangladesh and Spain. Efforts will also be made to optimize trade and investment services, and guide enterprises to make the best use of the Regional Comprehensive Economic Partnership (RCEP) and other free trade agreements, the CCPIT said. In the first 10 months of 2022, China's trade councils issued 4.411 million certificates of origin, ATA Carnets and commercial certificates to promote foreign trade, an increase of 4.56 percent over the previous year, according to the CCPIT. The organization said it will also guide enterprises to protect their legitimate rights in the face of US sanctions, the negative impact of the Ukraine crisis, and international economic and trade friction. It also urged the US to review the Section 301 tariffs in a fair and just manner and take this chance to stop imposing additional tariffs on Chinese goods, which is hurting US manufacturers, workers and consumers. Chinese foreign trade enterprises are facing multiple challenges of weakening external demand, rising costs and insufficient orders against the backdrop of the COVID-19 pandemic and global geopolitical tensions. However, despite the complexity of the domestic and international environment, the trend of steady and qualitative development of China's foreign trade has not changed, the CCPIT noted. China's foreign trade rose 9.5 percent year-on-year in the first 10 months in yuan terms, maintaining steady growth despite weakening demand abroad and geopolitical uncertainties, customs data showed. In October alone, exports grew 7 percent year-on-year, though slower than the reading of 10.7 percent seen in September. Potential recessions in Europe and the US dragged down external demand, while builtup inventory and recent COVID-19 flare-ups in multiple Chinese cities also affected exports, Bai Ming, deputy director of the International Market Research Institute at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday. However, China's export outlook remains resilient due to its advantages in costs and industrial chains, experts said. Wu Chaoming, deputy head of the Chasing Research Institute, told the Global Times that due to high global inflation and production costs, domestic products will have a relative cost advantage. Wu expects the integrity of China's industrial chain to play a prominent role in filling the global capacity gap, as a slow economic recovery and energy shortages weigh on European industrial production. In the fourth quarter, efforts should be made to explore competitive export products such as new-energy vehicles and cultivate regional markets with RCEP members, Bai noted. The CCPIT said it made new progress in economic and trade ties with ASEAN business sectors during the recent APEC CEO Summit in Bangkok, Thailand. The delegation led by the CCPIT reached consensus with the Thai business community on effectively synergizing the Belt and Road Initiative and Thailand's development strategy, and strengthening cooperation in electric vehicles, clean energy, artificial intelligence and agriculture. The CCPIT and the Singapore Chamber of Commerce & Industry also have agreed to carry out in-depth cooperation on the implementation of the RCEP, commercial legal services and on the New International Land-Sea Trade Corridor, the CCPIT said.
Source: Global Times
Apparel exports from Turkiye increased by 8.44 per cent year-on-year in JanuaryOctober 2022, according to data from the Turkish Statistical Institute and the country’s ministry of trade. During the first ten months of the current year, Turkiye exported apparel worth $16.378 billion, compared to exports of $15.102 billion during the same period of 2021. Category-wise, exports of knitted and crocheted clothing and accessories (HS chapter 61) earned $9.250 billion in January-October 2022, registering a growth of 4.6 per cent over $8.843 billion earned during the same months of the previous year. Exports of non-knitted apparel and accessories (HS chapter 62) were valued at $7.128 billion, showing an increase of 13.9 per cent compared to $6.259 billion exports in JanuaryOctober 2021. Meanwhile, Turkiye’s imports of cotton, cotton yarn and cotton textiles (HS chapter 52) increased by a sharp 51 per cent to $4.266 billion over $2.825 billion in the first ten months of 2021. In October 2022, the latest month for which the data is available, Turkiye’s exports of knitted and crocheted clothing and accessories (HS chapter 61) was affected by the global economic slowdown and low demand. The exports decreased by 13 per cent yearon-year (YoY) to $0.923 billion. On the other hand, the shipment of non-knitted apparel and accessories (HS chapter 62) also noticed a negative growth of 2.4 per cent in the same month. Last year, Turkiye’s total exports of knitted and crocheted clothing and accessories (HS chapter 61) and non-knitted apparel and accessories (HS chapter 62) were valued at $18.294 billion.
Source: Fibre 2 Fashion
Japan has very strict import standards, but if Vietnamese goods manage to meet those rules, they will be able to enter not only this demanding market but also most other markets in the world, said Vietnamese Trade Counsellor in Japan Tạ Đức Minh. Highlighting efforts by the Vietnamese Trade Office to connect export and import demand, he told the Vietnam News Agency that the two countries’ export structures do not directly compete but are complementary to each other. Việt Nam has great demand for commodities with high technological content and added value from Japan, which in turn has high demand for agro-forestry-fishery products, processed food, textile-garments, and leather-footwear from Việt Nam. That both countries are members of many free trade agreements (FTAs) such as the Việt Nam - Japan Economic Partnership Agreement, the ASEAN - Japan Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), which include many strong tariff cut commitments, has created many opportunities for boosting trade co-operation. Within the CPTPP and RCEP frameworks, Japan is a promising export market for Việt Nam thanks to the close proximity, leading to low logistics costs and convenient transportation, and the optimisation of rules of origin under these FTAs, Minh said. He recommended that to make use of advantages created by the CPTPP and the RCEP, Vietnamese enterprises should pay attention to the rules of origin to select suitable partners to increase the optimisation of preferential tariffs. As Japan is a demanding market with many strict import standards, to ensure Vietnamese goods can gain a foothold here, the first and foremost thing is to build national brands for products. Vietnamese exporters, importers and sellers in Japan, and relevant agencies should join hands to establish Vietnamese goods as high-quality and competitive products that meet Japanese consumers’ taste, according to the trade counsellor. He added that his office will press on with co-ordinating with the Vietnamese Business Association and Vietnamese-invested companies in Japan to encourage Vietnamese people there to use Vietnamese products, advertise made-in-Vietnam goods, and develop distribution channels for those products in Japan. It will focus on the commodities Việt Nam is strong at and Japan has high demand for, such as apparel, agro-forestry-fishery products, food, and handicrafts. The office will help consolidate and further expand the market for some items that have already gained a foothold in Japan such as banana, dragon fruit, coffee, cocoa, cashew nut, spices, and processed food. It will also step up trade promotion for potential commodities like textile-garment, leather-footwear, or mechanical products by participating in fairs, exhibitions, and business matching events to seek suitable partners and export opportunities, according to the trade counsellor.
Source: EIN News
Sri Lanka’s earnings from the merchandise exports exceeded US$ 1 billion for the sixth consecutive month in October 2022, but Year-on-Year revenue from exports decreased by 8.18 percent to US$ 1.095 billion in the month as per the data released by the Sri Lanka Customs. The Export Development Board’s performance report for the month of October said the decrease in earnings was mainly due to the decrease in export earnings from Apparel & Textiles, Tea, Rubber based Products, Coconut based Products, Spices & Essential Oils and Fisheries sector. Further, the impact of global crisis also affecting to decrease export earnings of major products. Major Exports in October 2022 Major product sectors except Gems & Jewellery and Electrical & Electronic components; export earnings from Apparel & Textiles, Tea, Rubber based Products, Coconut based Products, Spices & Concentrates, Food & Beverages and Seafood sectors recorded declines in October 2022 as shown in the table 1 below. Exports of Apparel & Textiles decreased by 13.19 % y-o-y to US$ 441.89 million in October 2022. The decrease was driven by both Apparel and Textiles. Export earnings from Tea in October 2022 which made up 11% of merchandise exports, slightly decreased by 0.76 % y-o-y to US$ 108.7 million. This was mainly due to the lower Export of bulk tea (-1.22%). Export earnings from Rubber and Rubber Finished products have decreased by 6.1 % y-o-y to US$ 86.3 million in October 2022, with poor performance in exports of Pneumatic & Retreated Rubber Tires & Tubes (-6.86%) and export of Industrial & surgical gloves (-8.74%). Export earnings from the Electrical & Electronics Components increased by 20.53 % yo-y to US$ 46.26 million in October 2022 with strong performance in exports of Insulated Wires & Cables (12.76%) and Other Electrical & Electronic Products (17.2%). In addition, export earnings from Spices and Essential Oils decreased by 18.95 % to US$ 36.39 million in the month of October 2022 compared to month of October 2021 due to the poor performance in export of Cinnamon (-19.44 %) and Pepper (-32.7 %). On monthly analysis, except kernel products export earnings of fiber products and shell products categorized under the Coconut based products increased by 19.67 % and 19 % respectively in October 2022 compared to October 2021. Export earnings from Seafood decreased by 20% to US$ 19.56 million in October 2022 compared to October 2021. Except Crabs, export earnings from Frozen fish, Fresh fish, Shrimps and Other edible fish decreased by 14.62 %, 21.44 %, 52.16 % and 31.46% respectively in October 2022. However, export earnings from Ornamental fish increased by 8.98 % to US$ 1.82 million in October 2022 compared to October 2021.
Source: Colombo Page
The triggers: Ukraine war, high energy prices, monetary tightening by major economies Global trade growth is likely to slow down in the closing months of 2022 and into 2023, according to the World Trade Organisation (WTO) Goods Trade Barometer. The reasons would be shocks related to the Russia-Ukraine conflict, high energy prices, inflation, and monetary tightening in major economies, it said. The Goods Trade Barometer provides real-time information on the trajectory of world trade relative to recent trends. Its latest estimates showed a reading of 96.2, below both the baseline value for the index and the previous reading of 100, reflecting a cooling of demand for traded goods. A reading of 100 indicates growth in line with medium-term trends, while readings greater than and below 100 indicate above-trend and below-trend growth, respectively. “The downturn in the goods barometer is consistent with the WTO's trade forecast of October 5, which predicted merchandise trade volume growth of 3.5 per cent in 2022 and 1 per cent in 2023 due to several related shocks including the war in Ukraine, high energy prices, and monetary tightening in major economies,” WTO said in a statement. The barometer index was weighed down by negative readings in sub‐indices representing export orders at 91.7, air freight at 93.3 and electronic components at 91 – an indication of cooling business sentiment and weaker global import demand. Container shipping and raw materials index finished below the trend, “losing its momentum” at 99.3 and 97.6, respectively. Automotive products were an expectation, with the index at 103.8, rising above the trend due to stronger vehicle sales in the United States and increased exports from Japan as supply conditions improved and the yen continued to depreciate. According to the WTO forecast released last month, global merchandise trade volumes are expected to grow by 3.5 per cent in 2022 — slightly better than the 3 per cent forecast in April. For 2023, however, the growth is expected to be 1 per cent, down sharply from the previous estimate of 3.4 per cent. In the case of India, amid waning external demand due to the global headwinds of high inflation, currency depreciation and geopolitical tensions, merchandise exports contracted for the first time in two years in October to $29.78 billion – down 16.65 per cent. In October, 24 of the 30 key export items showed contraction, while only six – electronic goods, rice, tea, oil seeds, oil meals and tobacco – witnessed growth, the data showed. Contraction in key commodity groups such as engineering goods, gems and jewellery, chemicals, and readymade garments dragged the overall exports down.
Source: Business Standard
Bangladesh has managed to retain nearly 67 per cent garment export receipts, thanks to increasing use of local raw materials. Media reports maintained this while adding that as per data from the Export Promotion Bureau and the Bangladesh Textile Mills Association (BTMA), the retention value of the exported apparel surged 36.36 per cent to US $ 28.5 billion in the financial year of 2021- 22 from what was US $ 20.9 billion a year earlier and going on to add that it means Bangladesh was able to retain US $ 28.5 billion in FY ’22, accounting for 66.88 per cent of the total garment export receipts of US $ 42.61 billion in the financial year. It may be mentioned here that the retention value in the garment sector in 2019-20 was US $ 18 billion out of the total shipment of US $ 28.7 billion.
Source: Apparel Resources
