The report emphasizes the importance of implementing manufacturing excellence by outlining the various factors affecting manufacturing costs and their benchmarking in the textile industry. In the aftermath of covid 19 pandemic, businesses have been significantly impacted by trade uncertainties, political instability and intensive competition in the industry. This has forced businesses to challenge and rethink their manufacturing practices. In the past, manufacturing prioritized efficiency and higher production volumes. However, the paradigm is shifting towards other critical factors such as the quality of products delivered and cost-effectiveness to meet customer demand and remain cost competitive in the industry. The cost of manufacturing holds significant importance in the textile & apparel industry due to the various factors involved in its manufacturing including complex and labourintensive processes. Textile & apparel manufacturing has witnessed historic shifts towards developing nations over the decades. US, Europe, UK and Japan leveraged a global trade share of 45% in the 1990s which reduced majorly to only 12% in the 2020s. Developing countries such as China, India, Bangladesh, Vietnam and Turkey became attractive destinations and this is evident through the increase in their combined trade share from 29% in the 1990s to 55% in the 2020s. This relocation is majorly driven by several factors including lower cost of manufacturing, availability of skilled labour and favourable business environment. In recent years, inflation, price volatility in raw material cost and increased competition in the industry have been driving down end-user pricing. To remain cost-competitive, businesses must focus on manufacturing excellence and targeting the improvement in minuscule areas in any business at each step can result in reduced manufacturing costs and improved EBITDA margins. By implementing manufacturing excellence organizations can achieve significant cost savings, improved reliability, increased productivity, superior quality, and enhanced supply chain performance. Wazir Advisors, the Gurugram-based management consulting firm, will release its report – titled “Manufacturing Excellence: The Path to Profitability in Textiles” at ITMA 2023. The report talks about the importance of manufacturing excellence and how it can help enhance profitability by reducing manufacturing costs. The report will have a detailed account of the factors affecting the cost of manufacturing and benchmarking norms of various parameters in the various segments of the textile industry.
Source: Indian Textile Magazine
The digital textile printing market was valued at US $ 2,714.5 million in 2023 and is projected to record a CAGR of 12.2 per cent to reach US $ 8,545.1 million by 2033. A report by Future Market Insights, the fashion industry holds a commanding share of 43.4 per cent in the global digital textile printing market. Driven by the presence of digital natives and key players in the region, North America accounts for 13.2 per cent of the total market share in the digital textile printing industry. As far as India is concerned, the growth of digital textile printing is supported by the promising performance of the textile sector, the presence of textile mill clusters, and an expected growth trajectory of 13 per cent between 2023 and 2033. The China market is projected to record a transforming CAGR of 13.8 per cent. The development of eco-friendly printing systems and the integration of digital printers with advanced software enable innovative designs, vibrant colors, and improved sharpness. The rising use of dye-sublimation digital printing and integration of printing techniques to achieve high printing speeds and advantages like low cost and durability contribute to market expansion in developing economies. As the technology enables faster production, customisation, and unique design capabilities, while also reducing inventory costs and facilitating faster response to fashion trends. Digital textile printing has become a game-changer in the fashion industry, empowering designers and brands to bring their creative visions to life more efficiently and sustainably.
Source: Apparel Resources
India and Singapore on Monday agreed to create opportunities for lifelong learning, building a future-ready workforce, and making knowledge and skill development a key pillar of strategic partnership, according to the Ministry of Education. Union Education Minister Dharmendra Pradhan is on a three-day visit to Singapore to strengthen existing ties and to explore the possibility of widening the scope of bilateral engagement in education and skill development. India and Singapore on Monday agreed to create opportunities for lifelong learning, building a future-ready workforce, and making knowledge and skill development a key pillar of strategic partnership, according to the Ministry of Education. Union Education Minister Dharmendra Pradhan is on a three-day visit to Singapore to strengthen existing ties and to explore the possibility of widening the scope of bilateral engagement in education and skill development. Pradhan met various key ministers of the Singapore Government and visited Spectra Secondary School on Monday. Minister for Finance, Singapore, Lawrence Wong on strengthening the existing cooperation between India and Singapore with a focus on deepening engagements in skill development," the ministry said in a statement. "During the meeting, it was agreed to work together, aiming to create opportunities for lifelong learning, building a futureready workforce, and making knowledge and skill development a key pillar of strategic partnership," it added. Later in the day, Pradhan visited Spectra Secondary School and interacted with the students as well as teachers to know more about the teaching-learning environment and pedagogy, among others. "Pradhan had an insightful discussion with Singapore's Minister of Trade and Industry Gan Kim Yong. The ministers had fruitful conversations on strengthening our skill development and vocational training linkages through all mechanisms for creating a seamless architecture for skilling and lifelong learning. "Building on the outcomes of the G20 Future of Work workshop in Bhubaneswar, they also discussed ways in which India can leverage the expertise and knowledge of Singapore for addressing common challenges and transforming the Indian skills ecosystem," the ministry said. It also said the education minister had the opportunity to have a greater overview of the best practices and models being followed in Singapore for the training of the workforce. "Both the ministers agreed to advance mutual priorities in skilling, create new opportunities for lifelong learning and collaborate together for the benefit of our countries as well as other emerging economies," the ministry added.
Source: Economic Times
Synopsis With 77.5 per cent of greenfield projects, the top sectors by FDI projects from India into Dubai in 2022 were software & IT services (32 per cent), business services (19 per cent), consumer products (9 per cent), real estate (6 per cent), and financial services (5 per cent). India has emerged as a key source country for Foreign Direct Investment (FDI) in Dubai, one of the wealthiest of the seven emirates in the United Arab Emirates, according to a report released on Monday. It ranked among the top five source countries for announced FDI projects and estimated FDI capital, according to a report released by "fDi Markets'', a service from UK's Financial Times Ltd. With 77.5 per cent of greenfield projects, the top sectors by FDI projects from India into Dubai in 2022 were software & IT services (32 per cent), business services (19 per cent), consumer products (9 per cent), real estate (6 per cent), and financial services (5 per cent). Meanwhile, the top sectors by FDI capital from India into Dubai in 2022 were consumer products (28 per cent), software & IT services (20 per cent), communications (19 per cent), pharmaceuticals (8 per cent), and business services (8 per cent) Apart from maintaining its first rank as a destination city for FDI from India, Dubai retained its number 1 spot globally for attracting greenfield FDI projects in 2022, further reinforcing its position as the world's top foreign direct investment hub, the report said. Retaining its top spot for a second successive year, Dubai achieved 89.5 per cent YoY (year-over-year) growth in total announced FDI projects in 2022, while total FDI capital surged 80.3 per cent over the same period, further consolidating the emirate's status as one of the top three global cities. The data for 2022 showed that Dubai continued to maintain and improve its leadership position across key FDI attraction metrics. The emirate ranked first in attracting FDI projects into tourism, business services, financial services, transport and warehousing, consumer products, and software & IT services sectors. Helal Saeed Almarri, Director General of Dubai's Department of Economy and Tourism, said, "Dubai's leading global FDI ranking underpins a comprehensive framework of initiatives that were launched to further strengthen the city's business and investment environment. "Our strategy to further consolidate the city's position as one of the top three global cities, in line with the Dubai Economic Agenda, D33, is again strengthened by the achievement of attracting and stimulating FDI and reflects the confidence investors, multinational companies, start-ups, and global talent have in Dubai," he added. Dubai emerged as the 2022 world leader in attracting FDI projects in the creative industries cluster, in research and development projects, and in attracting FDI project headquarters by hosting international companies' global and regional headquarters.
Source: Economic Times
G-20 member countries plan to establish a common framework to define startups next month. This framework, which seeks to create a global startup ecosystem that would work together, will be discussed on June 3-4 in Goa during a meeting of the Startup20 Engagement Group. Various task forces within the group are working on different issues concerning startups, including the establishment of a startup definition framework, unlocking financing of startups, promoting cooperation between key stakeholders, focusing on marginalized groups and determining which startups are willing to be measured by sustainable development goals. G-20 member countries will aim to arrive at a common framework to define startups next month, based on a draft policy communique issued by the grouping last week. The contours of the framework would come up for discussion on June 3-4 in Goa during the meeting of the Startup20 Engagement Group. Startup20 India chair Chintan Vaishnav said a common framework would help investors and other stakeholders of the startup ecosystem in the G-20 member countries. "The objective of the Goa meeting is to build consensus on the communique... It may not be feasible to have a single definition," he said, adding that the attempt is to provide a framework of choices to the members countries to arrive at their respective definitions. There are five task forces under this group-foundation, alliances, finance, inclusion and sustainability. "The idea of the foundation is to come up with a startup definition framework, which is applicable across different economies... The attempt is to provide a framework of choices from which a country can create a definition," Vaishnav said. There are about 850,000 startups across the G-20 countries, out of which over 98,000 recognised startups are in India. There are about 1,600 unicorns in these economies, of which about 108 are in India. is required for a global startup ecosystem to work together and become interoperable. Under alliances, the countries are trying to ensure that there is some form of platform to promote cooperation between key stakeholders of the startup ecosystem such as incubators and regulators. Similarly, the idea of the finance task force is to unlock financing of startups in general for nations to invest in these enterprises and also crossborder investments. There are many other financial issues like taxation of startups, which is a very major issue across the world," he said, adding in the inclusion part, "we are trying to focus" on marginalised groups and empowering these groups by following best global practices. Further, the idea of the sustainability task force is to say which are those startups that are willing to be measured by sustainable development goals. According to him, the possible outcomes from the summit meeting in Gurgaon on July 3-4 could include adoption of policy communique on startups, a common framework to define startups, a global innovation centre or a global network of innovation centres that would implement what Startups 20 group wants to take forward into action. Discussions on how to factor startups in global trade would also take place.
Source: Economic Times
The environment and the world are significantly harmed by fast fashion... Digital Desk: Fast fashion is the term used to describe the mass production and consumption of lowcost clothes that quickly brings the newest trends from the runway to the high street. It is distinguished by short production times, affordable rates, and a focus on often altering fashions to satisfy customer demand. The environment and the world are significantly harmed by rapid fashion, though. This is how: Excessive use of resources: Utilising limited resources like water, fossil fuels, and raw materials is a must for fast fashion. Textiles like cotton, polyester, and rayon take a significant quantity of water, energy, and chemicals to produce. As a result, there are more greenhouse gas emissions, water pollution, and non-renewable resource depletion. Pollution and harmful chemicals: The production, dyeing, and finishing of fast fashion textiles use a variety of toxic chemicals. These substances, which include heavy metals and risky dyes, frequently find their way into bodies of water, where they pollute the water and endanger both human health and aquatic ecosystems. Waste production: Fast fashion encourages a "throwaway" culture in which clothing is purchased, quickly used, and then discarded. Huge amounts of textile waste result from the drive to regularly refresh wardrobes. The worn-out clothing frequently ends up in landfills, where it decomposes and releases greenhouse gases, aggravating the issue of climate change. Low-quality clothing: Because fast fashion prioritises low-cost to manufacture, it frequently produces low-quality clothing that quickly loses its shape or becomes worn out. With frequent purchases being encouraged through planned. Worker exploitation: To keep prices down, fast fashion companies frequently outsource production to nations with weak labour laws and cheap pay. As a result, social inequities may be furthered through exploitative working conditions, unequal pay, long hours, and restricted worker rights
Source: Prag News
The TNPCB, in its reply to an email complaining about the discharge of effluents into drains and canals in Erode, said it was continually monitoring textile processing units in the district; it also said water samples from the region were frequently tested The Tamil Nadu Pollution Control Board (TNPCB) has said that power supply was disconnected to 75 textile processing units functioning under the Erode Corporation limits, for various violations, including the discharge of effluents into drains and canals, over the past one-and-a-half years. S. Chinnasamy, coordinator, Perundurai Sipcot Affected People Welfare Association, lodged a complaint with the board via email, stating that effluents were being discharged into canals that finally enter the Cauvery river in Vairapalayam. The email also asked what action had been taken against violators. In his reply letter to Mr. Chinnasamy, L. Mohan, District Environmental Engineer, TNPCB, said that various complaints were received from the public regarding the discharge of effluents into canals by the units functioning under the Corporation limits. Flying squads were formed to inspect units in Periyasemur and the team found the effluent treatment plants not being used in five units. A report was submitted to the District Coordination Committee and its chairman, and the Collector, ordered disconnection of power to these units. Likewise, officials have lifted water samples from the river at R.N. Pudur and Vairapalayam and sent them to the board’s laboratory in Salem. Also, water samples were drawn at Sipcot’s water pumping station, Bhavani Kattalai Barrage at B.P. Agraharam and in Vendipalayam and from the water pumping station at Vairapalayam to check the level of total dissolved solids (TDS) in the water. The letter said that samples were drawn every month and the quality of water is checked regularly. The letter also said that TNPCB had disconnected power supply to 27 units from January 2022, including one tannery unit, 10 dyeing units, 12 printing units and four others. Likewise, through the District Coordination Committee, power supply was disconnected to 48 units, including two tannery units, five dyeing units, 36 printing units and five sealed units. The letter said that officials were continuously monitoring the units and action was being taken against violators.
Source: The Hindu
While the government’s decentralised renewable energy initiative is good on intent, there are financing and implementation challenges Creating livelihoods by implementing decentralised or distributed applications of renewable energy is doable, but definitely not easy to implement on ground. Last year, the Ministry of New and Renewable Energy (MNRE) came out with a framework for promoting decentralised renewable energy (DRE), which is meant to help in powering livelihoods. In the recent past, a number of DRE livelihood applications have been developed that are not only energy efficient but also economically viable, the Ministry had said. These include solutions such as solar dryer, solar or biomass powered cold storage/chiller, solar charkha, etc. According to experts, such DRE livelihood applications ensures scalability without large investments. Besides, the energy efficiency of such solutions enhances their economic viability by reducing the size of the generation and storage requirement. Recently, Minister for Power and New and Renewable Energy, RK Singh, at an event said, “Our government is coming out with a new scheme for distributed applications of renewable energy.” “There is already a lot of work happening on the ground and our scheme could benefit lakhs of families across the country. We will, however, need large-scale manufacturing and standardising of distributed applications of RE to lower prices and expand the sector. We have seen the potential of grid-scale solar power, India will scale up distributed applications of renewable energy for livelihoods. Just like we have a large programme on rooftop solar and solar irrigation, we will create a large programme for DRE livelihoods,” he said. Singh also released two reports by the Council on Energy, Environment and Water (CEEW) and Villgro Innovations Foundation’s Powering Livelihoods initiative which showed that clean technologies have the potential to impact 37 million livelihoods in India’s agriculture and textile sectors and translate into a market opportunity worth almost ₹4-lakh crore (about $50 billion). The report further states that 70 per cent of women and farmers using clean technology reported an income increase, typically by 35 per cent. They use clean-energy powered products such as solar-powered silk reeling machines, multi-food processors, micro solar pumps, solar vertical fodder grow units, among others, to enhance and diversify their income. When there is a sovereign backing, then where is the challenge? Besides finance, two other key challenges are fixing accountability and creating awareness. According to Subrahmanyam Pulipaka, CEO, National Solar Energy Federation of India, the biggest impediment is social awareness among all stakeholders — financier as well as user. Fixing accountability as to who will implement the scheme is a challenge as every State has its own mechanism. In some places it is the energy department and in others it is the skill development or or even the rural development department that deal with the issue. According to the government, “energy infrastructure in India will require partnership between government, industry, and academia to develop the country’s capacity and storage of renewable energy and expand India’s research and development capabilities.” Abhishek Jain, Fellow and Director – Powering Livelihoods, CEEW, agrees that financing is an issue. “You are spot on when you say there is equipment cost, which leads to an upfront capital cost. And these solutions have higher capital cost when compared with their diesel or grid counterparts,” he said. “You are typically looking at customers who are cash-strapped; these are rural microenterprises, farmers or producer organisations or self-help groups, who are not sitting on cash to buy a ₹1 lakh equipment upfront and hence financing is critical to enable scale,” he said, adding that this meant bankers, MFIs, small finance banks have to play an important role here. “Support from the government can be very helpful, and there are existing schemes supporting technology adoption among micro-enterprises, such as Mudra or PM-FME. But the role of financing remains critical,” he added. Creating awareness From CEEW, he said, “We have been engaging and explaining to financial institutions and bankers about the solutions. Creating awareness is very important. Many bankers do not know how they will evaluate these solutions.” On the social aspect, Jain said, “We are promoting these solutions because, in many ways, they offer empowerment at the last mile. It helps farmers diversify their income. Farm incomes are coming down in comparison to non-farm incomes in rural areas. Only relying on cultivation income may not be sufficient for farming houses. Having these solutions at their doorstep, farmers can undertake value addition of their crops.” For example, horticulture or aloe vera growers can do value addition by making pulp or juices. It also helps those growing perishable commodities in getting more bargaining power as they have an alternative to selling their produce in the mandi. Some of the key findings of the reports released show that technologies like solar silk reeling and spinning machines and micro solar pumps had a significant share of women users, with a share of 92 per cent and 65 per cent, respectively. The use of these solutions not only helps in providing sustainable incomes for these users but also in improving productivity. The report acknowledges that currently, the deployment of these technologies on the ground is limited to tens of thousands, and it is a challenge to scale at the pace required to address the needs of rural and peri-urban communities. Further, a lack of evidence on the commercial viability of such solutions makes it challenging to garner support from investors, financiers, policymakers, and market enablers — exactly what the report tries to bridge. While the intent of the government is good, the way forward is creating an ecosystem for stakeholders to work collectively. Affordable financing is also the need of the hour. And creating a nodal agency, for example, to empower the panchayats to successfully implement the scheme with support from all the key entities — government as well as non-government.
Source: The Hindu Business Line
LMW has established itself as a prominent player in the textile machinery manufacturing industry in India. The company’s unique selling points stem from the country’s promotion as a manufacturing alternative to other countries. For over six decades, LMW has been a pioneering force in the Indian textile machinery industry. Founded in 1962, the company has consistently innovated and evolved to meet the changing needs of the industry, making it one of the most trusted and respected names in the business today. LMW’s rich heritage dates back 120 years with its roots deeply embedded in the textile industry. The company was founded in the early 1960s with a vision to provide end to end contemporary solutions for textile spinning industry. LMW has always been committed to research and development, which has allowed it to stay ahead of the curve in an everchanging industry. The company’s focus on customer centricity has also set it apart from its competitors with a deep understanding of the unique needs and challenges of its clients. Today, LMW is a trusted and respected name in the textile machinery industry thanks to its unwavering commitment to quality and customer satisfaction. Over the past six decades, LMW has achieved numerous milestones in the textile machinery industry. At the core of its success has been the commitment to address the needs and gaps that customers experience. This has led to the introduction of new products, solutions, and technologies, resulting in an extended product range that offers automation and is digitalised. Indeed, innovation has been the key to LMW’s ability to remain relevant and competitive. As a result, the company has taken several steps to ensure that it stays ahead of the curve, such as investing in research and development, collaborating with industry experts and adopting new technologies. These efforts have enabled LMW to maintain its position as one of the pioneers in the textile industry. According to the company’s CMD, Sanjay Jayavarthanavelu, the last three years had been the most challenging for businesses worldwide, with LMW being no exception. The Covid19 pandemic brought about unforeseen changes that impacted the textile industry on an unprecedented scale. Amidst the uncertainty and chaos, the resilience of both the Indian government and entrepreneurs has been commendable to say the least. While keeping people safe and healthy was of the utmost concern, the pandemic had adverse financial and psychological effects on businesses. The textile machinery industry faced significant logistical challenges, including the availability and rising costs of shipping containers. Moreover, international shipping was shut down for three months, causing major disruptions in the supply chain. However, in the textile industry, good logistics and time determine success and LMW remained committed to finding ways to cope with every obstacle presented. Although it was a trying time, the company weathered the storm with resilience and fortitude. Complete Solution Provider LMW has always been a company that focuses on the value chain of spinning, offering solutions beyond the ring frame. It has introduced automatic winding machine and jet spinning machine as OEM products, addressing the need for a comprehensive spinning solution. The production of textile machinery which was earlier labour intensive has now been automated to the extent possible resulting in cost optimization for the company. Furthermore, LMW is committed to improve digitalisation content, making its products and solutions more accessible to customers. The company introduced ‘Spin Connect’, a digital platform that provides customers with real time visibility of LMW’s products installed at their premises. Additionally, LMW has organised various events and programmes that bring customers closer to the company in terms of after-sales service. LMW is set to showcase its latest innovations in Industry 4.0 and the digitalisation initiative at the ITMA Milan 2023. With a profound understanding of the origins of Industry 4.0, which comes from its extensive experience in the machine tool business, LMW is at the forefront of technological advancements in the textile industry. With over three decades of experience in automation and digitalisation, LMW is uniquely positioned to provide innovative solutions that cater to the evolving needs of its customers. With its offering of 4S – Smart Solutions for Spinning Success and LMW PACE – Professional Aftermarket Care for Excellence, LMW aims at overall customer delight. Innovation and Sustainability The company’s extensive knowledge and expertise allow it to transfer the latest advancements in technology on to the textile side, ensuring it remains ahead of competition. Its latest showcase at the ITMA 2023 event promises to be a testament to its dedication in pushing the boundaries of what is possible in Industry 4.0 and digitalisation. LMW’s commitment to sustainability has been a part of the company’s core values for the last three decades. The company has been investing in renewable energy sources such as wind and solar energy and has become self-sufficient in terms of its energy requirements. LMW consistently strives to minimise the impact of its manufacturing processes on the environment. The recent GREENCO platinum certification received by its Foundry business vertical stands testimony to this fact. The safety of its employees and the environment has always been a top priority for the company. LMW has instilled within, a culture of respect and understanding for the environment, recognising the impact of industrial processes on humanity and the planet. As sustainability has become an integral part of its DNA, LMW has pledged its time and resources towards this worthy cause. The company’s commitment to sustainability is a testament to its dedication towards making a positive impact on the environment and society. Moreover, as Sanjay Jayavarthanavelu points out, sustainability also means extending the lifecycle of the products and LMW has been producing machines that are built to last. LMW’s machines have a long product lifecycle, with some of its earliest machines still operational in India even after a period of 30-35 years from their original date of installation. Its ring frames and carding machines have proven to be incredibly versatile and durable, owing to them being built with solid foundry and sheet metal products. However, the challenge for the company today is the lifecycle of mechatronics and electronics. Despite this, LMW continues to strive to create high-quality and reliable machines for its customers. With good customer connect and excellent manufacturing practices, LMW has established itself as a prominent partner in the global textile machinery manufacturing industry. With a vast ecosystem that produces quality engineering talent, India has become a preferred destination for textile machinery production. LMW has cultivated trust in its brand among its customers, as well as among budding entrepreneurs who want to invest in the textile industry. While primarily focusing on the Indian industry and customers, LMW aims to increase its export business while adapting to customers’ current needs. The competition in the industry is viewed positively as it keeps LMW constantly innovating and rejuvenating the LMW brand. The company’s adaptability to changing customer needs has been one of the reasons for its success. Operational Capabilities On the manufacturing front, LMW currently delivers up to 3 million spindles per year worldwide. One of its unique advantages has been the focus on localization. It relies on an in-house research and development team and manufactures technological components of high quality and consistency, avoiding the need for outsourcing. The company has created an extended family of subcontractors, which has been its strength. LMW aims to get closer to its customers by using technology to understand their precise requirements and predict their future needs. It recognises the fact that supporting older equipment can be a challenge but views it as a journey towards providing customers with a complete solution. The company exports to countries around the globe and has earned its reputation in terms of execution quality and customer-centricity. In conclusion, Sanjay Jayavarthanavelu has a clear and focused vision for the company’s future in the textile industry. The management’s plan to concentrate on the current portfolio and explore the post-spinning sector shows their dedication to growth and innovation. It is admirable that LMW places emphasis on sustainability and customer concerns, showcasing its commitment to responsible business practices. By maintaining and strengthening its customer base and increasing the export business, LMW has positioned itself as a significant player in the textile market. Its goal of making the balance-sheets of its customers more positive is a testament to its dedication towards its clients. Overall, LMW’s vision for the future of its business is inspiring and demonstrates its commitment to excellence in the textile industry. “Our mission has always been to create an ecosystem of innovation and understanding which has enabled us to provide our clients with technology driven solutions that are adaptive to ever changing market demands,” Sanjay Jayavarthanavelu, Chairman & Managing Director, Lakshmi Machine Works Ltd.
Source: Indian Textile Magazine
• Cambodia's ministry of commerce and the UK's ministry of business and trade have established a Joint Trade and Investment Forum (JTIF) to strengthen trade and investment ties. • An MoU was signed by minister Pan Sorasak and British ambassador Dominic Williams in this regard. • It aims to promote exports to the UK and increase British investment in Cambodia. In a bid to bolster trade cooperation, the ministry of commerce of Cambodia and the UK's ministry of business and trade have formalised a Joint Trade and Investment Forum (JTIF) through a memorandum of understanding (MoU). The newly established forum, backed by the MoU, aims to fortify the trade and investment ties between the UK and Cambodia, offering a platform to shape and advance these relationships. The signing ceremony took place on May 26 at the ministry and was presided over by the Cambodian minister of commerce, Pan Sorasak, and the British ambassador to Cambodia, Dominic Williams. The inaugural gathering of the JTIF saw the participation of leaders from both nations, policymakers, and stakeholders, deliberating on critical trade aspects. These discussions revolved around the Developing Countries Trading Scheme, Cambodia's New Law on Investment, and the UK's focus on green and resilient economic growth, according to Cambodian media reports. Minister Sorasak hailed the JTIF as a positive step towards strengthening the trade cooperation between the two nations, with the ambition to enhance the investment and business landscape and advocate for economic diversification. The MoU aims to promote the export of products from Cambodia to UK and the influx of investment from UK into the country.
Source: Fibre 2 Fashion
Vietnam’s exports in the first five months of this year fell 11.6% from a year earlier to $136.17 billion, government data showed on Monday, as weakened external demand weighs on its manufacturing-led economy. Its industrial output in the January-May period fell 2% from a year earlier, the General Statistics Office (GSO) said in a report, adding that average consumer prices in the period rose 3.55% from a year earlier. The latest data underlines a slowdown in economic growth for Vietnam, a key regional manufacturing centre, due largely to subdued global demand. Imports in the first five months of this year fell 17.9% from a year earlier to $126.37 billion, resulting in a trade surplus of $9.8 billion, the GSO said. The sharp imports decline could indicate a further slowdown ahead in industrial production, as businesses reduce procurement of raw materials and equipment. Vietnam is key exporter of electronics, garments and textiles, footwear and wooden items, including for top global brands. Deputy Prime Minister Le Minh Khai earlier in May said the economy would face unfavourable external conditions during 2023. Vietnam is targeting growth of 6.5% this year, slower than the expansion of 8.02% in 2022. Vietnam’s GDP growth slowed to 3.3% in the first quarter from expansion of 5.9% in the fourth quarter of last year. Oxford Economics on Monday said it had cut its forecast for Vietnam’s 2023 GDP growth to 3.0% from 4.2%. “We think that easing global growth, including a fading recovery momentum in China, mean that the depressing outlook for Vietnam’s exports has further to run, casting clouds over the prospect of any rebound in GDP growth,” it said in a note. Exports in smartphones, Vietnam’s largest export earner, fell 16% in the January-May period to $21.17 billion, the GSO said. In May, its total exports fell 5.9% from a year earlier, while imports were down 18.4%, the GSO added.
Source: Business Recorder
DBL Group, the country’s one of the largest textile and apparel exporters, used to pay Tk 25 crore in monthly gas bills on average before February this year. But it is now paying Tk 75 crore a month due to the energy price hikes. The government justified the hikes, saying liquefied natural gas (LNG) imports will increase gas pressure. But factory owners say they are yet to get the benefit. Even though higher gas bills have raised DBL Group’s production costs by up to 30 per cent, the gas pressure is still the same as before. On the other hand, buyers are refusing to increase product prices due to the ongoing global economic crisis. This has put the manufacturer in deep trouble. The company is also facing problems opening letters of credit (LCs) due to the USD crisis while the central bank’s move to reduce the Export Development Fund (EDF) size from $7 billion to $4.5 billion and cut individual borrowing limits from $30 million to $20 million for the textile industry has worsened the situation. Business is now very bad, DBL Group Vice-Chairman Mohammed Abdur Rahim told The Business Post. He said gas and fuel prices are going down in the global market, but the opposite is happening in Bangladesh. “This has increased our production costs amid reduced orders while the irony is that Bangladesh Petroleum Corporation (BPC) is making profits.” Rahim further said at a time when the export sector is struggling with the decrease in orders, the central bank has reduced the EDF size. “They did not consider we highly depend on the EDF to import raw materials. Also, most raw materials have to be imported.” Like DBL Group, hundreds of textile factories that are using gas to run their captive power plants and boilers are in a severe crisis due to the low gas pressure, high energy prices, and the USD shortage. The production capacity of most spinning, weaving, dyeing, and washing factories has gone down by up to 40 per cent while costs have risen by up to 25 per cent. Industry insiders said they are now forced to accept orders at rates below production costs and do not know how long they can survive that way. Many factories have already got their loans categorised as non-performing while many more are at risk as well. Besides, they said factory owners are facing problems opening LCs due to dollar shortages and some banks are charging up to Tk 114 per USD. The crisis has also hit readymade garment (RMG) factories, especially knitwear manufacturers, as most apparel makers highly depend on the domestic market to source yarn and fabrics as well as for washing and dyeing. Bangladesh Textile Mills Association President Mohammad Ali Khokon said they are under pressure from all sides. Gas pressure is low despite higher tariffs while the government has failed to ensure uninterrupted electricity supply. He said, “We cannot open LCs due to the USD shortage, and banks are charging higher dollar rates than the one set by the central bank. In addition, we are unable to accept enough orders as the offered rates are below our production costs.” No end in sight to gas crisis According to Petrobangla, Bangladesh currently has 20 operational gas fields with a supply of nearly 2,300 MMcf/d against the countrywide demand of around 3,800 MMcf/d. To fill the gap, the government signed long-term agreements with Qatar and Oman to import 500 MMcf/d through LNG. Besides, it imported LNG from the spot market on various occasions to increase supply. However, after Russia invaded Ukraine in February last year, the price of per cubic metre (m3) of gas in the spot market rose from $6-7 to $35 while Bangladesh’s forex reserves declined gradually to an alarming level. For this reason, the government stopped LNG imports from the spot market in July last year to save depleting forex reserves. The move severely impacted the textile industry’s production. Industry leaders recommended the government increase gas prices to up to Tk 22 per m3 to import LNG from the spot market. The government, however, raised gas prices to Tk 30 per m3 for all sectors on January 18 this year from Tk 11.98 for large, Tk 11.78 for medium, and Tk 10.78 for small, cottage and other industries. It said LNG imports from the spot market will increase gas pressure. Petrobangla data shows the country imported six cargos of LNG from the spot market from this February to May, though the plan was 12 cargos during the February-June period. The plan fell through due to the ongoing forex reserve shortage. On May 28, the country supplied 3,113 MMcf/d gas to the national grid despite a demand of nearly 3,800 MMcf/d. Of this, 978 MMcf/d came from both the spot market and long-term LNG imports. Industry insiders said they are yet to get any benefits though gas supply has improved a little as they have to use high-cost diesel generators due to the low pressure. This is also one of the main reasons of the increase in production costs. Moreover, the recent loadshedding has exacerbated the situation.
Source: Business Post
Policies to reduce the carbon footprint of the textile industry must include design for recycling and an acceptance that recycling might deliver lower quality fabrics, the Bureau of International Recycling has been told. Professor Stefan Schlichter of the International Centre for Sustainable Textiles in Augsburg, Germany, set out the issues at a meeting of BIR’s textile division at its Amsterdam convention. ‘Where are now is not that impressive,’ he said, pointing out that fibre-to-fibre recycling was ‘very, very low’ at 1%. ‘And the industry has a severe environmental footprint,’ the professor added, pointing out that 33% of textiles go to incineration or landfill. In 1972, 70% of textiles came from renewable resources and 50 years later the figure is 30%, with 60% of fibres being petrobased, a shift which created additional challenges for sustainability in general and recyclers in particular. A major challenge, delegates were told, is that recycling textiles is a more complex process than many other materials such as plastics. Decisions on how materials were processed after use had to balance technical, economic, and ecological criteria. Schlichter said these criteria would dictate whether mechanical or chemical treatment was better. ‘The problem is not that there are not the technologies available; the problem is that the balance between these different needs is not correct.’ He believed the sought-for goal of ‘cradle-to-cradle’ recycling was ‘too strict’. ‘You have to consider that the recycling may reduce the quality so it may be better to make a different textile,’ he advised. ‘And we don’t need to have 100% recycling. If we managed only 50% that would change a lot of things.’ Better design to aid recycling was also called for. ‘As an example, a modern diaper (nappy) consists of 10 different materials but this is unnecessary – you can make them from just one. The reason for 10 is that the manufacturing costs are lower. ‘We need more research, better takeback systems, automatic sorting, optimising mechanical recycling and develop chemical recycling to an industrial scale. We probably need 150-250 new recycling facilities in Europe by 2030. We need government help because industry is probably not able to do it by themselves.’ The panel discussion which followed included a query from moderator Alan Wheeler from the UK’s Textile Recycling association as to whether circularity really was the most desired outcome. ‘Is it better to recycle an item back into other clothing for a few months or years or for it to be recycled into something like insulation that will last for decades?’ Schlichter responded by saying that life analysis (LCA) did not always give the appropriate answer when materials had several lives, as in Wheeler’s example. He thought multicycle LCAs would be a better approach. He believed that more circular thinking from clothing brands would drive loyalty. ‘If you as a brand are in a circular model with takeback and supply again you are in a completely different relationship with your customers and you can save a lot of costs over the cycle. ‘There are definitely opportunities economically for brands to move to the circular economy but you have to think differently.’ Asked by the EuRIC secretary general Emmanuel Katrakis for his top three measures to drive circularity, Schlichter replied: • A policy push so that everyone in the chain ‘starts to move’ • A ban on over-production – ‘there is 25% over-production in the garment industry’ • Extended producer liability – ‘it will involve the fashion industry’.
Source: Fibre 2 Fashion
ORGANIZED labor threw its support behind the call of President Ferdinand Marcos Jr. for the renewal of the Free Trade Agreement (FTA) between the Philippines and the European Union (EU), which is set to expire this year. The Trade Union Congress of the Philippines (TUCP), the country's biggest labor group, said on Monday the renewal of the FTA as well as of the EU Generalized Scheme of Preference Plus (GSP+) is a "win-win" for employers and workers because it would mean more decent employment opportunities and ease in finding jobs. "In line with the President's ardent belief that a future trade arrangement is a 'win-win' for both the Philippines and EU, the TUCP likewise believes that these trade privileges and future bilateral agreement tied to progressive compliance with the free exercise of labor rights, sustainable development, climate change energy transition, and the Indo-Pacific strategy of the European Union will also be a huge 'win-win' opportunity for both workers and employers," TUCP Vice President Luis Corral said in a statement. GSP+ is part of the EU's unilateral tariff preferences to help developing countries by granting full removal of tariffs on over 66 percent of tariff lines covering a wide array of products including textiles and fisheries. There are currently 8 GSP+ beneficiaries – Armenia, Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, the Philippines, and Sri Lanka. The scheme helps developing countries assume the special burdens and responsibilities resulting from the ratification of 27 core international conventions on human and labor rights, environmental protection and good governance as well as from their effective implementation. The President's agenda, the TUCP pointed out, should have the full support of his economic managers and concerned government agencies through observance of human rights and international labor standards, which the country has yet to show firm commitment to based on the findings of the International Labor Organization (ILO). "Increasingly, trade is linked to promotion and respect for the fundamental principles and rights at work (FPRW), which embrace all the eight core ILO Conventions and the two additional conventions on Occupational Safety and Health," Corral said. The country's observance of ILO Convention 87 has been the subject of at least three high-level technical missions of the ILO since 2009. The latest was the January 2023 High Level Tripartite Mission (HLTM), which reiterated the long-standing concerns on anti-union violence, political profiling and impunity. "Addressing long-standing workers' issues, passing the long-committed labor legislations to align the Labor Code with the core standards, and pursuing the ratification of essential ILO conventions will show the Marcos Administration's firm commitment to the fundamental principles," Corral said.
Source: Manila Times
