The second tranche of PLI to cover garments, made-ups, textiles accessories; have lower investment, turnover criteria The second edition of the production-linked incentive (PLI 2.0) scheme for textiles is likely to have an outlay of ₹4,307 crore and will cover manufacture of garments, made- ups and textiles accessories of all materials, natural or man-made, per the Cabinet note finalised by the Textiles Ministry. “A Cabinet note, together with guidelines, for PLI scheme for apparel/garments, madeups and textiles accessories, with an outlay of ₹4,307 crore, has been finalised and circulated to the PM Office and Cabinet Secretariats”, an internal note of the Textiles Ministry Stated.
Source: The Hindu Business Line
The second Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting was held in Detroit yesterday hosted by the US. Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal virtually participated in the Ministerial meeting. IPEF was launched jointly by the USA and other partner countries of the Indo-Pacific region on May 23, 2022 at Tokyo. IPEF has 14 partner countries including Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam & USA. It seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace and prosperity in the region. The framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV). India had joined Pillars II to IV of IPEF while it has an observer status in Pillar-I. At this Ministerial Meeting, negotiations under the Supply Chains (Pillar-II) were substantially concluded; while good progress was reported under the other IPEF Pillars. Pillar-wise Press Statement was issued at the end of the Ministerial meeting to provide an update on the developments related to text-based negotiations under each of the respective IPEF Pillars (link below). Under the Supply Chains (Pillar-II), IPEF partner countries are seeking to: make supply chains more resilient, robust, and well-integrated through crisis response measures; cooperation for mitigation of disruptions to better ensure business continuity, and improve logistics and connectivity; promoting investments particularly in critical sectors and production of key goods; and worker role enhancement through requisite upskilling and reskilling, and increasing comparability of skills credentials frameworks across IPEF. During his intervention under this Pillar, Shri Piyush Goyal, commended the negotiating teams in delivering an expeditiously negotiated, and mutually beneficial Agreement that could propel deeper integration of economies and supply/value chains within IPEF, and urged for expeditious implementation of all the action-oriented cooperative and collaborative elements identified as part of this Agreement. Under the Clean Economy (Pillar-III), IPEF partners are aiming to advance cooperation on research, development, commercialization, availability, accessibility, and deployment of clean energy and climate friendly technologies, and facilitate investment towards climate-related projects in the region. Further, interested IPEF partners are introducing a regional hydrogen initiative to encourage widespread deployment of renewable and lowcarbon hydrogen and its derivatives in the region. During his intervention under this Pillar, Shri Goyal highlighted that India would like the Pillar focus to be centered on action-oriented elements, such as mobilization of low cost long tenure climate finance and enhanced access to clean energy technologies. Under the Fair Economy (Pillar-IV), IPEF partners are working toward development of the text of an agreement that will strengthen implementation of effective anti-corruption and tax measures to boost commerce, trade, and investment among IPEF economies. During his intervention under this Pillar, the Minister highlighted the strong steps taken by India under the dynamic leadership of the Prime Minister Shri Narendra Modi to improve India’s legislative and administrative framework to provide a corruption free administration and reaffirmed India’s commitment to implement UNCAC and the FATF standards.
Source: PIB
The rise of drop shipping in India for textile and home decor products has been gaining momentum in recent years. Drop shipping is a retail fulfilment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means that the merchant never actually handles the product. One reason for the increase in drop shipping is the COVID-19 pandemic, which led to a surge in online shopping, with many consumers turning to e-commerce platforms for their shopping needs. The Insight Partners estimates the global drop shipping market size to reach $591.77 billion by 2027, growing significantly at a CAGR of 18.3% from 2020 to 2027. The Government of India has announced the target of doubling the country’s textile and apparel double its current size by 2030 to $300 billion. Accordingly, the country’s home decor market will also grow. The Concept of Drop Shipping Drop shipping is not a new concept. In fact, it has been around for quite some time. The first recorded use of drop shipping dates back to the 1960s when Sears started using this fulfilment method. Drop shipping became more popular in the 1990s with the rise of the internet and e-commerce. Online retailers started using drop shipping as a way to expand their product offerings without having to invest in inventory. The benefits of drop shipping are numerous. For one, it allows retailers to offer a wide variety of products without having to invest in inventory. This means that they can test new products without incurring a lot of risk. Drop shipping also eliminates the need for a physical storefront, which can reduce overhead costs. Additionally, drop shipping can be a great way for small businesses to compete with larger retailers. Drop shipping home decor products from India Drop shipping from India for textile and home decor products is a lucrative business opportunity. India is known for its textiles and home decor products, and many people around the world are interested in these products. By drop shipping from India, retailers can offer these products to a global audience without having to invest in inventory. To do drop shipping from India, there are a few key steps that retailers need to follow: 1. Find a supplier: Retailers need to find a supplier in India who is willing to drop ship their products. There are many suppliers in India who specialise in drop shipping, so this should not be too difficult. 2. Create a website: Retailers need to create a website where they can sell their products. This website should be easy to navigate and should have a clear call to action. 3. Promote the website: Retailers need to promote their website in order to attract customers. This can be done through social media, e-mail marketing, and other forms of online advertising. 4. Fulfil orders: When a customer buys something from a retailer’s website, the retailer has to ask the supplier in India to send the product directly to the customer. There are several key success factors for drop shipping from India. For someone looking for starting a drop-shipping business, the following process could help in making a good start: 1. Find reliable suppliers: The success of your drop shipping business depends largely on finding the right suppliers. Do your research and look for suppliers who offer quality products, reasonable prices, and efficient shipping options. 2. Choose the right products: It is important to choose products that are in demand and have a good profit margin. Research current trends and popular products in the textile and home decor industry to determine what to sell. 3. Build a strong brand: Establishing a strong brand is essential for standing out in a competitive market. Invest in a professional website, social media presence, and customer service to build trust and loyalty with your customers. 4. Optimise for SEO: Search engine optimisation (SEO) is crucial for driving traffic to your website. Use relevant keywords and meta descriptions to improve your website’s visibility in search engine results. 5. Provide excellent customer service: Customer service is a key factor in the success of any business. Respond promptly to customer inquiries and concerns and strive to exceed their expectations with your service. 6. Stay on top of trends: The textile and home decor industry is constantly evolving, and it is important to stay up-to-date with the latest trends and technologies to remain competitive. Successful people in drop shipping There are many people in India who are successfully doing drop shipping for textile and home decor products. One such person is Rajat Agarwal, who runs an online store called Rangrez. Rangrez offers a wide range of textiles and home decor products, all of which are drop shipped from India. Agarwal has been able to build a successful business by offering high-quality products at competitive prices. Another person who is successfully doing drop shipping from India is Anushka Chauhan. She runs an online store called The Indian Weave, which specialises in Indian textiles and home decor products. She has been able to build a loyal customer base by offering excellent customer service and fast shipping. Successful businesses in drop shipping Below mentioned are some more examples of successful drop shipping businesses in India: 1. Kraftly: This online marketplace for unique and handmade products has a vast selection of textiles and home decor items. Kraftly offers a range of shipping options and has a user-friendly platform for easy ordering. 2. Aapno Rajasthan: This popular drop shipping business specialises in Rajasthani handicrafts, textiles, and home decor items. Aapno Rajasthan has a wide range of products and offers competitive pricing and efficient shipping options. 3. Bigsmall.in: This company sells unique and quirky gifts, including home decor, accessories, and toys. This website operates on a drop shipping business model, where it partners with multiple suppliers and manufacturers worldwide to source its products. The portal’s business model and product selection have resonated well with Indian consumers, resulting in its success as a drop shipping business in India. Conclusion The rise of drop shipping in India for textile and home decor products presents a promising opportunity for entrepreneurs. By following the key success factors and action points outlined in this article, one can establish a profitable and successful drop shipping business in this growing market. With India’s textile and home decor industry predicted to boom in the coming years, now is the perfect time to start your own drop shipping business and tap into this lucrative market.
Source: Fibre 2 Fashion
The German economy contracting for two consecutive quarters could affect India's export to Germany and Europe as a whole. The most affected sectors would be leather products, chemical and light engineering items, and exports like apparel, footwear, and leather goods. Yogesh Gupta, the FIEO Eastern Region's Regional Chairman, stated that it is too early to comment on the impact of the recession on Indian exports, but Germany being the main growth driver for the EU, the recession there will impact the purchasing there. With the German economy contracting for two consecutive quarters, India's exports from sectors such as apparels, footwear, and leather goods to the European Union nation are likely to be impacted adversely, according to exporters. Data released by the Federal Statistical Office on Thursday shows that Germany's gross domestic product (GDP) declined by 0.3 per cent from January to March. This follows a drop of 0.5 per cent in Europe's biggest economy during the last quarter of 2022. "This is going to affect Indian exports not only to Germany but Europe as a whole since other countries are also already in recession," Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said. He said India's export to Germany stood at USD 10.2 billion in 2022-23 and it could see a fall due to long-term recession in Germany and the most affected sectors would be leather products, chemical, and light engineering items. Economic think-tank GTRI cofounder Ajay Srivastava said: "Recession will adversely impact India's exports of value USD 2 billion. This includes smartphone, apparels, footwear, and leather goods. In a recession, daily use products are the first to be impacted". Export of iron and steel products will also be impacted due to the soon to be levied carbon border tax by Germany, he said. Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka said the recession in Germany would affect order flows into India. "Business will be down by minimum 10 per cent. This slowdown will definitely impact the investment flow from Germany," Goenka added. However, Saraf said Germany is the ninth largest investor in India and investments from there may not be affected since in recessionary conditions, German companies would be looking at cheaper alternatives. Yogesh Gupta, Regional Chairman, FIEO (Eastern Region), said since Germany is the main growth driver for the EU (European Union), recession in that nation will impact the purchasing there. "However, it is too early to comment on the impact of the recession on Indian exports," Gupta said. In 2022-23, India's exports to Germany included machinery (USD 1.5 billion); electronics (USD 1.2 billion), including smartphones (USD 458 million); apparels (USD 990 million); organic chemicals (USD 822 million); footwear (USD 332 million); leather goods (USD 305 million); articles of iron and steel (USD 474 million); and auto components (USD 406 million). Two consecutive quarters of contraction is a common definition of recession, though economists on the euro area business cycle dating committee use a broader set of data, including employment figures. Germany is one of the 20 countries that use the euro currency.
Source: Economic Times
Sanjeev Sanyal, a member of Modi's Economic Advisory Council, said India has begun to raise this issue at global forums. He said the indices were being compiled by a "tiny group of think-tanks in the North Atlantic," sponsored by three or four funding agencies that are "driving a real-world agenda." India plans to push back against "agenda-driven", "neo-colonial" country rankings produced by global agencies on topics like governance and press freedom, a key advisor to Indian Prime Minister Narendra Modi told Reuters in an interview on Friday. Sanjeev Sanyal, a member of Modi's Economic Advisory Council, said India has begun to raise this issue at global forums. He said the indices were being compiled by a "tiny group of thinktanks in the North Atlantic," sponsored by three or four funding agencies that are "driving a real-world agenda." "It is not just narrative building in some diffused way. This has clear direct impact on trade, investment and other activities," Sanyal said. India ranked lower than Afghanistan and Pakistan in the new World Press Freedom Index released by Reporters Without Borders. It was below Pakistan and Bhutan in an academic freedom index by V-Dem Institute. Over the past year, India has in various meetings pointed out the flaws in methods used to compile global indices used by institutions like the World Bank, World Economic Forum (WEF) and the United Nations Development Programme (UNDP), Sanyal said. The "World Bank is involved in this discussion because it takes these opinions from these think-tanks and effectively sanctifies it by putting it into something called the world governance index," Sanyal said. The World Bank, WEF, Reporters Without Borders and V-DEM Institute did not immediately respond to requests for comment. UNDP said it would respond shortly. Sanyal said the ratings also get hard-wired into decision-making through environmental, social and governance (ESG) norms and sovereign ratings. Multilateral development banks offer subsidised loans to ESG-compliant projects. "The idea of having some ESG norms is not the problem in itself. The problem relates to how these norms are defined and who certifies or measures compliance to these norms," he said. "As things are currently evolving, developing countries have been completely left out of the conversation." The matter is being taken up by the Cabinet Secretariat, which has held more than a dozen meetings on the issue this year, a government official said. The Cabinet Secretariat and finance ministry did not immediately respond to requests for comment. G20 presidency. Sanyal did not say if India has flagged the issue of country rankings with the G20. "There are other developing countries who are also concerned about this because effectively this is a form of neo-colonialism," he said, adding that concerned ministries have been asked to establish benchmarks and engage continuously with ratings agencies. Some of the upcoming indices being watched out by India are financial development index by International Monetary Fund, gender inequality and human development indices by UNDP, logistics performance and worldwide governance indicators by the World Bank, sources said.
Source: Economic Times
Himachal Pradesh government is emphasizing promotion of state's unique products. 'One District One Product' (ODOP) initiative will be instrumental to realize this purpose. Chief minister Sukhvinder Singh Sukhu said that Unity Mall will be established in the state to prevail this concept, which is aimed at fostering balanced regional development across all districts of the country. He said that one product from each district has to be selected, branded and promoted for enabling holistic socioeconomic growth across the state. The chief minister said that products will be selected by taking into consideration the existing ecosystem. Activities like exhibitions, capacity building, etc. at the State and district level are also included in the initiative. GI-tagged products of the State, handicraft products and handicrafts of other States will be available under one roof. Himachali crafts have a niche market as the Handicrafts in the state are made with the special motive of serving the needs of the natives but these handicrafts are also popular as tourist's attractions. The various kinds of handicrafts available in the state include woodwork, leather embroidery, metal wares, carpets, painting and woolen textiles. The vast range of handicrafts found in the state is unique and portray the artistic skill of the craftsmen therefore its branding is being emphasized, he added. Sukhu said that the surmounting beauty and diversity of the state's crafts leaves an everlasting imprint in the hearts of people. The significance of varieties is also extended to the other products which include Kullu Shawl, Kangra Tea, Himachali Chulli Oil, Himachali Kala Zeera, Chamba Rumal, Kinnauri and Kullu Shawl and Kangra Paintings. He said that people of Himachal Pradesh over the years have developed rich traditions of handicrafts, which are creative and distinctive. The state government successfully hosted the G20 Summit on 19 and 20 April, 2023 at Dharamshala showcasing the state's products, which were highly appreciated by the foreign delegates. He said that Thangka is an intricate and brightly colored painting done on woven material especially cotton cloth, which is a very famous art of Tibetan artisans. These paintings mostly depict Buddha as well as other gods and goddesses. This art is very popular especially with foreign tourists. Himachal also specializes in making fine shawls. Moreover, accessories, embroidery, woolen garments and leather craft of Himachal are extremely precious and popular. He said that his government is committed to promote the handicrafts and handloom of the State in a big way. This will provide unique products to the consumers besides employment and self-employment opportunities to the rural artisans in their own region.
Source: Times of India
The YESS is an initiative by Responsible Sourcing Network to achieve a forced labour-free cotton supply chain for the garment and textile industry. Shahi Exports will implement Responsible Sourcing Network’s “Yarn Ethically & Sustainably Sourced” (YESS) standards, according to a press release. Shahi was one of the seven global suppliers that piloted the YESS standards in 2022 and has now become the first textile mill in India to take the lead in implementing it. YESS conducted its initial independent assessments at Shahi Exports’ knitting and spinning facilities recently. The YESS is an initiative by Responsible Sourcing Network to achieve a forced-labour free cotton supply chain for the garment and textile industry. The initiative was officially presented in India on May 2. “This joint effort (with Shahi) represents a significant milestone in the pursuit of responsible and transparent cotton supply chains,” said Patricia Jurewicz, CEO of Responsible Sourcing Network.
Source: The Hindu
The four-day 44th ISO COPOLCO Plenary hosted by the Bureau of Indian Standards (BIS) from 23-26 May, 2023 concluded at New Delhi on 26.05.2023 with the keynote address from Ms. Nidhi Khare, Additional Secretary, Ministry of Consumer Affairs, Food & Public Distribution in the presence of Ms. Mamta Upadhyay Lal, Additional Director General, BIS, Prof. B. Metri, Director, Indian Institute of Management, Nagpur and Chairman, Management & Systems Division Council, BIS and Ms. Sadie Dainton, Chairperson, COPOLCO and other senior officials and representatives of ISO and member countries. Senior officials, scientists and staff of BIS also marked their presence during the event. During her keynote address, Ms. Nidhi Khare mentioned, “We have made significant improvement in the area of consumer protection during the recent years. Also, robust consumer grievance redressal systems have been developed to help fast-tracking resolution of such matters.” While stressing the need to keep sustainability as a core consideration in standardisation, she said, “Manufacturers should ensure that products are designed for sustainability parameters, they can also be partners in the process of reducing e-waste.” Ms. Mamta Upadhyay Lal highlighted the activities and initiatives of BIS. She mentioned, “BIS has taken up a wide range of initiatives, such as Manak Manthan, Quality Connect etc. which are aimed at enhancing consumer engagement in standardisation.” Ms. Sadie Dainton expressed her appreciation for all member countries for their ongoing engagement and commitment to raising consumer stakeholders’ awareness of the value of standards for consumer protection and for engaging and involving consumers to develop credible and robust standards which address real problems faced by real people, by setting out good practice for organizations to minimize the risk of harm to consumers. ISO Officials attending the Plenary stated that the 44th COPOLCO Plenary has successfully achieved its objectives of empowering consumers for a sustainable future, through in-depth discussions and exchange of national and international experiences of the challenges that consumers face in making sustainable choices and promoting the development of the circular economy. The officials also informed that ISO has renewed its commitment to incorporate the objectives of the United Nations Sustainable Development Goals into its standards programme and giving a voice to vulnerable stakeholders most affected by climate change in its standards and policy work. ISO Secretariat also shared, “On behalf of ISO we express our deep gratitude to the Bureau of Indian Standards and the Indian government for their hospitality and support in hosting the 44th meeting of ISO/COPOLCO and upholding the importance of the consumer as a critical partner in society and the economy. We were very happy to interact with representatives of over 40 members and liaison organizations from around the world and 21 Indian consumer organizations, attending in person and online.” Notably, the plenary of the International Organisation for Standardisation (ISO) Committee on Consumer Policy (COPOLCO) is the flagship annual event of the multilateral organisation in the area of consumer engagement. ISO boasts 168 countries as members and holds a range of sensitive meetings of stakeholder groups, committees and communities with an objective to strengthen the process of standardization and enhance consumer participation across the globe. As per the participants and delegates, people-centric approach and themes such as ‘Challenges and Good Practices for Consumer Engagement’; Empowering Consumers for a Sustainable Future; Consumer Protection and Legal Frameworks; have made this year's plenary particularly important for the international community. The conference also featured workshops and addresses by eminent speakers, including ministers and persons of eminence from around the world. The event will also feature panel discussions on matters pertaining to consumer engagement. As per the Officials from ISO, being one of its founding members since inception in 1947, ISO considers India a very important partner in pursuing its vision in making lives easier, safer and better. The plenary also featured dialogue sessions, workshops and interactive sessions on various themes related to consumer matters. During the workshops, groups of representatives of various countries were formed where they exchanged views, information, experiences etc. The four-day event marked the distinguished presence of not only the who’s who of the Indian Government and business sectors but the international delegation of eminent global stakeholders as well. Sh. Piyush Goyal, Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles addressed the gathering of international delegates, representatives of international and national consumer welfare organisations during the inaugural session of the event. Apart from the Minister, the list of eminent international dignitaries included the Union Minister of State, Consumer Affairs, Food & Public Distribution Sh. Ashwini Kumar Choubey, Union Minister of State, Consumer Affairs, Food & Public Distribution, Ms. Sadhvi Niranjan Jyoti, Sh. Rohit Kumar Singh, Secretary, Department of Consumer Affairs, Ms. Sadie Dainton, Chairperson, COPOLCO, Mr. Sergio Mujica, ISO Secretary General and other higher officials of ISO and standards organisations of various countries.
Source: PIB
• Vietnam's exports to the ASEAN bloc fell by 4.7 per cent year on year (YoY) to hit $10.85 billion in the first four months this year, accounting for 10 per cent of the country's total exports. • Imports from ASEAN member nations fell by 17.6 per cent YoY during the period to reach $13.360 billion, accounting for 13.4 per cent of the country's total imports. Vietnam’s exports to the Association of Southeast Asian Nations (ASEAN) hit $10.85 billion in the first four months this year, accounting for 10 per cent of the country’s total. The figure was a drop of 4.7 per cent year on year—a low level compared to the country’s 13 per cent drop of overall export revenue during the period. Six among the 24 export markets with turnover of over $1 billion are ASEAN members. Meanwhile, imports from ASEAN member nations during the period were worth $13.360 billion, accounting for 13.4 per cent of the country’s total imports—but down by 17.6 per cent year on year, resulting in a trade deficit of $2.51 billion—a decrease of 48 per cent compared to the same period last year. Thailand was Vietnam’s largest market among ASEAN member countries, with two-way trade reaching $6.25 billion, a news agency reported. It was followed by the Philippines with $1.73 billion—up by 7 per cent year on year, and Indonesia, Cambodia and Malaysia.
Source: Fibre2 Fashion
In its proposals for the budget 2023-2024, Adam Smith International’s REMIT (Revenue, Mobilization, Investment, and Trade) program for Pakistan has recommended an increase in the sales tax rate on textile fashion retailers from 12 percent to 18 percent. The advisory firm suggests that raising the sales tax on textile fashion retailers would be beneficial for the country. Additionally, they propose several changes to the sales tax laws. One recommendation is to make the condition of Computerized National Identity Card (CNIC) mandatory for Business-to-Business (B2B) transactions, with the suggestion to extend this requirement to Business-to-Customer (B2C) transactions as well. The scope of Point of Sale (POS) should also be expanded to include all B2B transactions. The firm further advises making digital invoicing compulsory for the entire value chain and linking Sales Tax Registration with POS installation. Moreover, they propose the exclusion of certain administrative orders (ss. 38, 40, 40B, 40C under Sales Tax Act, 1990) from the regular appeal system and the introduction of administrative relief for such actions. These recommendations aim to enhance revenue generation and streamline the sales tax system in the fashion textile sector. The proposed changes, if implemented, would have an impact on retailers, businesses, and the overall economy. It remains to be seen how these suggestions will be considered and integrated into the budget planning process.
Source: PK Revenue
• The European Union's trade deficit decreased to €2 billion in Q1 2023 due to falling energy prices, after deficits of €150 billion and €78 billion in Q3 and Q4 2022, respectively. • Q1 2023 saw a decline in both exports at -1.4 per cent and imports at -11.5 per cent. • The trade balance of the EU for energy products was -€114 billion in Q1 2023. Driven to a large extent by the decrease of energy prices, the European Union (EU) trade balance displayed a deficit of just €2 billion in the first quarter (Q1) of 2023, following deficits of €150 billion in Q3 2022 and €78 billion in Q4 2022. These developments follow four quarters of increasing deficits. Between Q4 2021 and Q3 2022, there was a significant increase in extra-EU trade, mainly caused by rising commodity prices, particularly for imports of energy, as the Russian invasion of Ukraine put additional upward pressure on these products. However, in Q4 2022, exports grew only by 1.5 per cent compared with the previous quarter, while imports fell by 7.7 per cent due to decreasing prices of energy products, Eurostat said in a press release. In Q1 2023, both exports at -1.4 per cent and imports at -11.5 per cent fell compared with the previous quarter, totalling €656 billion and €658 billion, respectively. However, rising prices of energy products increased the deficit for energy so much that the overall surplus turned into a deficit. In the last two quarters, declining energy prices allowed the trade deficit to return to almost zero. Although in Q1 2023, the trade balance for machinery and vehicles at €47 billion was still not close to the high value registered in Q1 2019 at €60 billion, data show that the trade balance for these products almost doubled compared with Q2 and Q3 2022 at €25 billion in each quarter. In the first three months of 2023, the EU trade balance for energy products was -€114 billion and -€9 billion in raw materials.
Source: Fibre 2 Fashion
Koh Kong province is considered the rising star of Cambodia’s west coast. The province is known for its beautiful beaches, mangrove forests, and greenest along Cardamom Mountains. The province hosts special economic zones which are home to multi-million dollar car manufacturing, electricity spare parts, and textiles and garment factories. From the city centre, it took us 40 minutes along the muddy road to meet one key informant, Thor Sreymeas, a 34-year-old garment worker and a mother of two. Sreymeas dropped out in grade three due to extreme poverty and family responsibilities. Before she moved to Koh Kong in 2016, she worked at a sugar farm in Kampong Chhnang province where she met her husband and later moved to Koh Kong after they married. We sit down with Sreaymean and her beautiful family inside her old wooden, but cosy house. Sreymeas is on maternity leave, when we interviewed her, and just a week away from delivering a baby boy. When asked if she is ready, she responded with a big smile: “Yes, I am ready”. She told us, with her beautiful smiles: “I am ready and least worried compared to when I gave birth to my first child. Back then, we were very worried because we did not have any money. We needed to borrow money for labour. We were very worried back then. “I now have an NSSF card after working with a factory here in Koh Kong. This card [NSSF] will help me cover my labour- expenses. I’ll also get a $100 allowance from Prime Minister Hun Sen.” She also explained to us the payment process and required supporting documents. Sreymeas is very knowledgeable about NSSF coverages and benefits. When asked how she got to know all those things, she told us she has attended training series provided by NSSF agents and union representatives, the word of mouth from fellow workers, and her experience giving birth to her second child. Sreymeas’ story and the positive impacts of NSSF coverage on her resilience is an eye opening for us. This strongly reasserts the urgent need for and importance of inclusive social protection for the Cambodian people, especially women and mothers. What Sreymeas and other women who share the employment status is benefiting from this social scheme came along away with the Government of Cambodia political will to ensure an inclusive development and sustainable development goals. It requires supportive policy framework, the Social Protection Policy Framework 2016-2025, the oversight institution, National Council for Social Protection, and the public investment. The progress so far is commendable despite being relatively new to social protection. The National Social Security Fund is currently covered 1.4, out of 4.1 million wage workers. And for the past 28 months, $837.05 million was allocated to the social assistance policy like IDPoor programme and cash-based transfer covering 706,060 poor and vulnerable households across the Kingdom. The Cambodia’s government also spent a total of $20.07 million between June 2019 to October 2022 supporting 181,542 pregnant women and 106,820 children under two years old. Cambodia has also made a new chapter in its social protection systems by introducing a pension fund in 2022 for private sector employees, a scheme which used to be only available to public servants, and promises social security benefit to sex workers by 2023. Sreymeas is more fortunate because she is covered by NSSF. But, there are tens of thousands of women and mothers who are not yet included in social protection systems. There are street vendors, the majority of whom are women and mothers, who are not yet included in the social protection systems. There are small scale farmers, despite their long-standing contribution to our food security, who have not yet benefited from the policy. And of course, youth and working age students who are not provided with unemployment and healthcare benefits. And more groups of population, you name it. Prime Minister Hun Sen is visionary for saying that social protection “would not harm the economy, but would improve the health and development of the Kingdom’s workforce”. Investing in social protections is a win-win policy. While it might seems a little too early to rush in, expanding social schemes, investing more on social protection betting on the fiscal space, international experiences look promising and encouraging. A study on investments in social protection in Japan, Mongolia, South Korea and Thailand found positive impacts on GDP. In Japan, one additional dollar spent on social protection generates an accumulated expansion of GDP by $1.7 after two and a half years. South Korea has the highest multiplier effect, with an accumulated increase of $3 after 10 quarters. In Mongolia, the accumulated multiplier effect is $1.5 after eight quarters. All were driven by the effects on household consumptions and private investment, thanks to investment in social protection. In Cambodia, the joint impact assessment of the General Secretariat of the National Social Protection Council (GSNSPC) and UNDP found that Cambodia’s cash transfer programme alone contributed to 0.45 per cent of GDP growth, reduced poverty by 3.4 per cent and the unemployment rate by 0.62 per cent in 2021. The National Social Protection Council is now collecting inputs to prepare “National Social Protection Framework 2023”. OXFAM and partner organisations are ready to bring the voice of the community we represent to the policy formulation and dialogues. Building inclusive social protection systems is critical to our future generations and economic competitiveness. Just like you, I am optimistic that Cambodia can do it now.
Source: Phnom Penh Post
• Despite a global decline in apparel imports, Australia's clothing imports from Cambodia rose to $42.575 million in the first quarter of 2023. • This increase goes against the trend observed in other countries. • The annual data supports this upward trend, with 2022 imports reaching $140.926 million, a significant increase from $96.221 million in 2020. Australia's apparel imports from Cambodia have defied the current global decline trend. The imports reached $42.575 million during the first quarter of this year, showing an increase compared to both the previous quarter and the same quarter of the previous year. Most apparel-exporting countries have registered a drop in shipments due to sluggish purchases by brands and retailers. High inflation rates in Europe and the US have curtailed demand in retail markets. Australia's garment imports from Cambodia rose to $42.575 million in the period from January to March 2023, up from $38.347 million in the period from October to December 2022, and $26.651 million in the period from January to March 2022. Shipments totalled $37.390 million in July-September and $28.536 million in April-June of the previous year, according to data obtained from Fibre2Fashion's market insight tool TexPro. Annual trade data paints a similar picture. Imports from Cambodia reached $140.926 million in 2022, compared to shipments totalling $112.846 million in 2021. Australia's apparel imports from Cambodia fell to $96.221 million in 2020, down from $116.376 million in 2019, but rebounded in 2021 and increased further in 2022. Inbound shipments were valued at $99.487 million in 2018, according to TexPro. In a product-wise analysis, Australia imported trousers and shorts worth $10.655 million during the first quarter of this year, accounting for 26.03 per cent of the total. The import value of jerseys was $9.071 million (22.16 per cent), innerwear $3.699 million (9.04 per cent), T-shirts $3.650 million (8.92 per cent), and shirts $3.546 million (8.66 per cent).
Source: Fibre 2 Fashion
