Delegation of FICCI Textiles Committee met Smriti Zubin Irani, Minister for Textiles and Women and Child Development recently and impressed upon her to launch a special mission for synthetic fibre and textiles value chain to make Indian industry competitive in the global trade which is predominantly done in the man-made fibre (MMF)-based items. Global textile markets are swiftly shifting from exports of cotton yarn to manmade fibres. Hence, India must take urgent steps to keep pace with the global markets by increasing production and exports of MMF based products. India's per capita consumption of Man-made Fibre is around 3.0 kg, whereas the world per capita consumption is 12 Kg. There is a wide gap and tremendous opportunity for enhancing the consumption of MMF based textiles and clothing in India. Government needs to announce a MMF Textile Mission for giving thrust to development of Synthetic and Specialty fibres in India by making the value chain competitive and providing raw materials at competitive prices, said FICCI. This mission mode approach with specific time bound targets will help India to garner higher export share in global markets and new employment opportunities across India. Other important issues raised by the FICCI delegation were need for simplification of GST rates for the entire textile value chain (one rate for the entire textile value chain), rising imports of garments from Bangladesh and need for separate housing scheme for garment workers in the cities. Currently, due to different GST rates in the textiles value chain refund accumulates due to inversion. Collapsing all these rates into a single rate of 12% does not build up input tax credit, does not lead to refund of input tax credit which would imply less paperwork and less applications for the industry, noted FICCI. Further, garment imports from Bangladesh have increased almost by 82% in 2018-19 vis-a-vis 2017-18 (from US $ 200 million to US $365 million) pointed out FICCI. Imported garments have got 12-15% advantage vis-a-vis domestic garments in the post GST period. FICCI suggested that under the SAFTA agreement only those goods should be exempted from custom duty, whose raw material is also manufactured by SAFTA countries. Yarn and fabric forward rules of origin are required under SAFTA to ensure any duty free garment import is made up of yarn or fabric from within the SAFTA countries only. To increase the employment of women workers in garment sector, FICCI suggested to increase the deduction under IT Act Section 80JJAA for women work force from present 30% to 60% per annum threshold. IT Act Section 80JJAA provides deduction in respect of employment of new employees drawing emoluments up to Rs 25,000 per month (explanation- At present, under section 80-JJAA of the Act, a deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year. The minimum period of employment is relaxed to 150 days in the case of apparel industry). This would encourage employers to employ women work force which is now constrained by social and statutory conditions FICCI also requested the Minister to come out with a Worker Housing scheme for apparel sector in the cities. The need for such a scheme arise from the growing difficulties faced by women garment workers due to lack of safe and conveniently located accommodation in cities. Also, to arrest and increase the declining female workforce ratio in the country, it is important to have such a scheme for the women workers in and around cities, noted FICCI.
Source: SME Times
Most of these units are MSMEs and are facing issues related to TUFS scheme. FIASWI has also raised concern over high rejection rates of applications under TUFS. The Federation of Indian Art Silk Weaving Industry (FIASWI) has requested the ministry of textile to expedite financial assistance to weaving units in Surat under Technological Upgradation Fund Scheme (TUFS). “More than 1,500 such applications are pending to avail support from TUFS. Delay in release of funds under TUFS is hampering expansion plans of these units, which could generate thousands of jobs,” says Bharat Gandhi, chairman of FISWI, adding that the Centre has reduced subsidy under the scheme from 30% to 10%, which should again be restored to 30%. There are 22,000 weaving units in Surat with more than 4.50 lakh power-looms. These units are providing employment to more than 2.50 lakh people in Surat and the surrounding areas. Most of these units are MSMEs, and are facing issues related to TUFS scheme. FIASWI has also raised concern over high rejection rates of applications under TUFS. “on account of inconsequential reasons like machine number not mentioned in invoice that too without giving opportunity to rectify.” The federation wants sympathetic approach, Bharat says, adding that hig- end embroidery machines are removed under the scheme and, as a result, a plethora of applications automatically became ineligible. “We want the textile ministry should reconsider its decision,” he added. According to him, the textile industry is providing highest employment after agriculture in the country. Especially, Surat is producing 90% man-made fabric. The industry requires support from the Centre through TUFS, Group Work Shed Scheme, and simplification in processes to avail benefits of these schemes to enhance productivity and to make the industry compatible in international market, he said. Already textile industry is facing goods and services tax (GST) related issues ranging too much paper work and problems related to credit refunds, he said, adding that hopefully the new government would solve issues on priority basis in coming days.
Source: Financial Express
The Indian Texpreneurs Federation, representing spinning mills and garment units here, has taken up a survey to find out reasons for the flat growth in exports. Prabhu Dhamodaran, secretary of the Federation, said that 320 units have taken up the survey so far that will end on Monday. The response is mostly from units in the region. The Government has announced packages to give a boost to the garment and made up sectors and to push export of these value added products. However, export growth has remained flat compared to competing countries. The Federation has short-listed 14 reasons and shared it in the survey and asked the participants to choose the top three reasons. Some of the reasons include: India’s focus markets is restricted to three or four countries, high manufacturing cost, dependence on cotton-based products for exports, need to improve manufacturing efficiency, and lack of rationalisation of the duty structure. “The problems faced by all segments of the textile industry are the same. So any unit can participate in the survey and share the views,” he said. The survey was shared with textile and clothing units across the country. But majority of the response is from this region, he added.
Source: The Hindu
As proposed by the GST Council, a trial run of the new return filing mechanism called the GST 2.0 is expected to be launched starting July 2019. A full scale launch is likely to begin in a phased manner starting October 2019. Under the new return system there is one basic return and 2 annexures. FORM GST RET-1 this return form has details of the supplies made. To be filed monthly (Small taxpayers with annual turnover upto Rs 5 crore, will have the option to file returns quarterly.)
Annexures
FORM GST ANX-1 - has details of all outward supplies, inward supplies on a reverse charge basis and import of goods and services to be reported invoice-wise (except for B2C supplies) on a real-time basis.
FORM GST ANX-2 - has details of inward supplies. Recipient can accept or reject these documents, or mark them as pending, for action to be taken later. Tax will need to be paid on a monthly basis by all taxpayers.
Key Changes
Uploading of invoices on an ongoing basis and accept/reject by buyer - One of the key changes is the mechanism to upload invoices in real-time by a supplier, which will be available for the buyer to view simultaneously and take action on in FORM GST ANX-2. The invoices can be marked as accepted or rejected by the buyer, or the same can be kept pending for action to be taken at a later date.
Provisional credit - In the event a supplier does not upload invoices or file his return, there will be a mechanism for availing input tax credit by the recipient on a provisional basis. The credit available in such cases would not be more than 20% of the specified value. There is no provisional credit allowed in the current system. Amendment returns - The new return system will have a provision to file two amendment returns for each tax period. The old system did not allow this and the only option available to taxpayers was to amend certain details in the GST return of the following period. Now, as an amendment return can be filed for the same tax period, interest on the amended tax liability may be avoided or reduced.
Timeline of changes
From July 2019
The new return system will be implemented on a trial basis where a supplier will be able to upload invoices using the FORM GST ANX-1, and the recipient will be able to view and download the invoices of inward supply.
July to September 2019
Trial period where users can make themselves familiar with the annexure forms GST ANX1 and GST ANX-2, and will continue to file GSTR-1 and GSTR-3B.
From October 2019
FORM GST ANX-1 will be made compulsory to be filed by large taxpayers (annual turnover more than Rs. 5 Crore), and it will replace the GSTR-1 return entirely. For small taxpayers, FORM GST ANX-1 will be implemented from January 2020, which will be for the quarter October to December, 2019. Large taxpayers will continue to file the GSTR-3B during the months of October and November 2019, after which they will have to have to start filing FORM GST RET-01, the main return in the new return system, which will need to be filed by the 20th of January 2020. In the case of small taxpayers, they will need to stop filing GSTR-3B and start filing FORM GST PMT-08 from the month of October 2019, which will be the form for selfdeclaration of taxes and the payment of the same. The plan is to phase out GSTR-3B from January 2020 onwards, by which all taxpayers shall be filing FORM GST RET-01.
Source: Economic Times
As India looks to finalise a national e-commerce policy, commerce and industry minister Piyush Goyal on Monday held a series of meetings with industry stakeholders on digital trade and data localization. Common issues for discussion include opportunities for India in the growing digital economy, value addition in Indian GDP due to advent of e-commerce, understanding data flows from four aspects – privacy, security, safety and free choice, ownership and sharing of data, gains and costs of cross border flow of data and means to monitor use of data,” commerce and industry ministry said in a statement as the series meetings were on. The meetings come in the wake of a draft policy on e-commerce in which the government has proposed regulating cross-border data flows, locating computing facilities within the country to ensure job creation and setting up a dedicated data authority for issues related to sharing of community data, asserting that the data generated in the country is a national asset and citizens and the government have a sovereign right over it. Goyal is meeting the industry representatives in four cohorts. As per the statement, issues like strengths and weaknesses of Indian companies who may benefit from e-commerce, threats from large foreign competition, level playing field and impact of anti-competitive practices such as predatory pricing and other discriminatory practices are expected to come up for discussion in his meeting with Indian e-commerce firms. On the other hand, gains and costs of cross border flow of data, ownership and sharing of data and efficiency gains and losses on utilizing Indian data servers, emails, clouds are likely to be deliberated during his meeting with e-commerce companies. With Indian information technology firms, Goyal is expected to discuss the likely increase in costs and efficiency losses due to data localization, timeline to create a data infrastructure to comply with data localisation norms and developing Indian data servers, clouds, emails. “Anticipated increase in costs and efficiency losses due to data localization, monitoring use of data from lens of privacy, security, safety and choice and efficiency gains and losses on utilizing Indian data servers, emails, clouds are the issues on the agenda of the minister’s meeting with foreign IT firms,” the government said in the statement
Source: Economic Times
What happens if President Donald Trump carries out his threat to impose tariffs on the remaining USD 300 billion in Chinese goods that he hasn’t already hit with 25 per cent import taxes? A New Hampshire fireworks company says it would have to raise prices, likely lose business and force some small towns to cancel their Fourth of July fireworks displays. A Minnesota motorcycle maker warns that it would lose business to foreign rivals that don’t have to pay taxes on Chinese parts. A Los Angeles designer and distributor of houseware goods says it would have to extend a hiring freeze and delay plans to expand into a larger warehouse. The administration, in the midst of the trade war it began with Beijing, had asked for comments on its plan to extend 25 per cent tariffs to everything China ships to the United States.
It’s getting an earful.
Hundreds of businesses, trade groups and individuals have written to complain that the additional import taxes would drive up prices for consumers, squeeze profits and leave US companies at a competitive disadvantage to foreign rivals that aren’t subject to higher taxes on the vital components they buy from China. They’re pleading with the administration to rethink the tariffs — or at least spare the particular imports they and their customers rely on. Some will appear in person to air their grievances in seven days of hearings in Washington that begin Monday. A common theme in their pleas is that American businesses — not China, as Trump often asserts — must pay the import taxes the president is imposing on Chinese goods. And in the end, many of these companies will pass their higher costs on to their customers. Trump has already imposed 25 per cent tariffs on USD 250 billion in Chinese imports. The goal is to pressure Beijing to stop stealing American technology, forcing US businesses to hand over trade secrets and unfairly subsidizing Chinese tech companies. Eleven rounds of negotiations have failed to resolve the dispute over China’s aggressive drive to surpass America’s technological dominance. Businesses and investors say they hope the negotiations will gain momentum if Trump and President Xi Jinping hold a face-to-face meeting at a Group of 20 summit in Osaka, Japan in two weeks. “Most businesses are almost praying for a solution,” said Patrik Berglund, who tracks global trade as the CEO of Xeneta, an Oslo, Norway ,firm that provides data on the shipping industry. “These things will have enormous consequences. We’re so connected in this global world.” Trump’s earlier tariffs largely spared American consumers by focusing on industrial goods that don’t show up directly in the mall or big-box stores. But the new round will inflict financial pain on ordinary households because it will affect many consumer goods, from cellphones and computers to shoes and silk scarves. “We’re talking about things that you and I buy and buy in a store, and that’s going to be felt directly by consumers,” said Neil Bradley, chief policy officer at the US Chamber of Commerce. The companies that serve the retail market, he said, tend to have “much, much less margin to absorb those increased tariff costs.” A report commissioned by the National Retail Federation found that American consumers would pay an additional USD 4.4 billion a year for clothing, USD 2.5 billion more for shoes and USD 1.6 billion more for household appliances. More broadly, economists say the tariffs could weaken a US economy that appears to be on shakier footing. Mark Zandi, chief economist at Moody’s Analytics, said the higher import taxes would leave the United States with 900,000 fewer jobs than it would have had otherwise. “The US economy will be flirting with recession later this year and early next,” Zandi said. Jeffrey Pratt, leader of the supply chain practice at the accounting and consulting firm BDO, called the looming tariffs “a bit of gamechanger” for his clients. Many can’t afford to absorb the taxes themselves and would pass along the higher costs to their customers. Atlas PyroVision Entertainment in Jaffrey, New Hampshire, relies on China for 90% of the fireworks it sells. “Simply imposing a 25 per cent tariff will ultimately cause significant harm to our family business,” CEO Stephen Pelkey said in a filing with the US Trade Representative. “We would be forced to pass along the increase directly to our customers.” Noting that community nonprofits often use the fireworks for Independence Day celebrations, Pelkey wrote: “In most cases, a 25% hike in price will force their skies to go dark on the 4th of July.” Bracing for the new tariffs, Yedi Houseware, a Los Angeles family business, has postponed plans to hire and move into a bigger warehouse. Bobby Djavaheri, a company executive, echoed a common complaint: The administration is taxing products — in his case, things like air fryers — that aren’t made by American companies. They must be imported. So no US producer benefits from the tariffs; US importers just get socked with a tax.
“It’s really dumbfounding,” he said.
Indian Motorcycle Co. in Medina, Minnesota, complained that its foreign competitors won’t have to pay a tax on Chinese parts, allowing them to “import the finished motorcycle into the United States — without increased costs.” Excluding motorcycle parts from the tariffs, a company lawyer, Paul Vitrano, wrote, would “avoid the unintended consequence of providing foreign-based motorcycle manufacturers with a competitive advantage.”
Source: The Hindu Business Line
India's near-term trade outlook is fragile as its retaliatory tariffs on US products come amid a global slowdown, a report said. Trade deficit remained elevated in May and widened to $15.36 billion from $15.33 billion in April and a comparable $14.62 billion the same month last year. "The near term outlook for trade looks fragile with President Donald Trump terminating a beneficial trade treatment accorded to India for a developing nation. Also, the recent imposition of retaliatory tariffs by Indian economy to US decision comes at a time when global economic growth rate is projected to slow down.. ," the Centrum report said. "Both the actions add further woes to India's trade position, that is already struggling against the prevalent headwinds from slowing global demand," it added. However, Crisil said it believes the withdrawal of benefits under the Generalized System of Preferences (GSP) from June 5, as announced by the US earlier, will have limited impact on India's overall export trade. "In calendar 2018, India's goods and services trade with the US totalled $142.1 billion of which, exports were $83.2 billion. Within exports, that under GSP is estimated to be 7.5-7.8 per cent, which translates into $260 million of levies saved, tantamount to a 4 per cent duty benefit," Crisil said. It added that the gems and jewellery sector could be moderately impacted by the withdrawal of GSP, pharmaceuticals and textiles and apparel would be relatively unscathed.
Source: Business Standard
The rupee, on Monday, fell by another 11 paise to close at 69.91 to the the US currency, its third straight-session loss, in line with intense sell-offs in domestic equities amid concerns over Indo-US trade tariff disagreements. The domestic currency has lost 57 paise in the last three sessions. However, easing crude oil prices and weakening of the US dollar against key rivals helped the Indian rupee contain losses to some extent. At the interbank forex market on Monday, the domestic currency opened higher at 69.87 a dollar, but lost ground during the day to fall to 69.94. The rupee finally settled at 69.91, down 11 paise over its previous close. The Indian unit had settled at 69.80 a dollar on Friday. “The rupee fell against the US dollar taking cue from other weak Asian currencies and widening Indian trade deficit for a third consecutive month,” said VK Sharma, Head-PCG and Capital Market Strategy, HDFC Securities. Sharma further said market participants are awaiting the monetary policy of the Federal Open Market Committee (FOMC), Bank of England, and Bank of Japan scheduled this week.
Source: Financial Express
Aditya Birla Fashion and Retail Ltd (ABFRL) are joining a unique and pioneering industry-led platform, 'Circular Apparel Innovation Factory' (CAIF) in collaboration with Intellecap. CAIF is India's first industry-led platform, aiming to build a circular apparel and textile industry in India. Its mission is to search, seed, support, and scale circular textile and apparel innovations in India by building an enabling ecosystem of brands, manufacturers, enterprises, and innovators across the value chain. Through the association, ABFRL will be demonstrating its commitment to shift the industry from its current 'take-make-dispose' approach, to one that encourages the use of sustainable material, maximize utilization of clothing & textile and thereby promote recycling. These initiatives will help ABFRL retain its focus on creating significant social impact. "We are pleased to partner with Intellecap to accelerate sustainable fashion concept through CAIF to build industry level platform for circular textile eco-system. We intend to bring forth ideas and innovation to add more strength to our pioneering work around sustainability. The association with Intellecap will help us create, collaborate and mainstream the conversation around circular economy and sustainable fashion", said Ashish Dikshit, Managing Director, Aditya Birla Fashion and Retail Ltd. In 2013, ABFRL began its sustainability journey titled 'ReEarth', a unique sustainability program. ReEarth addresses the most significant economic, environmental and social impact that humanity faces and the progress ABFRL has made so far in our sustainability journey. Driving ReEarth, is a core commitment, that as an organization we should give back to the planet what we have taken over the years. "ABFRL is a marquee name in Fashion and Lifestyle, and its partnership with CAIF would help foster an ecosystem wherein not only ABFRL, but the larger industry could potentially be recognized as the global innovators in circular fashion", said Vikas Bali, CEO, Intellecap. "Intellecap through CAIF is here to Co-create innovative solutions and business models that will help brands create solutions for a more circular apparel economy through prototyping and testing", he added. As a part of the partnership, ABFRL will support a number of CAIF initiatives such as industry convening to discuss opportunities for circularity, as well as undertake specific pilots on identified initiatives, and launch brands specific challenges to identify and adopt innovations. "Sustainability will be at the centre of innovation in the fashion industry in the coming decade and while tools and technologies will change, it will be the intellectual capital that will hold ABFRL in good stead. In continuation with our philosophy, we are partnering with Intellecap to build a positive impact for our businesses", said Dr Naresh Tyagi, Chief Sustainability Officer, Aditya Birla Fashion and Retail Ltd. "With ABFRL as our first corporate anchor partner, we are laying the foundation of making CAIF India's first industry-led collaboration and innovation platform to create pathways for a more circular and sustainable textile and apparel industry. We are happy to see India's apparel and textile ecosystem joining forces under the umbrella of CAIF to identify opportunities for innovation and collaboration, drive implementation on the ground, together work on removing scaling barriers, and drive collective action", said Stefanie Bauer-Vemuri, Director, Circular Apparel Innovation Factory. Intellecap, supported by the DOEN Foundation launched the Circular Apparel Innovation Factory (CAIF) in 2018, as a neutral industry platform that drives the circular fashion agenda. CAIF's role in transforming the industry is centered on four key pillars:
* The first, to act as innovation engine for brands and value chain stakeholders, helping them to identify opportunities, test new solutions, and broker high impact partnerships.
* The second, building on CAIF's role as an innovation engine, is to facilitate action by driving experimentation and action on the ground.
* Further, through its market building role, CAIF aims to remove existing scaling barriers and catalyze the creation of an enabling environment that enables circular innovations to scale.
* And lastly, as industry convener, CAIF accelerates the speed of innovation, creates opportunities for collaboration and shapes the conversation around circular apparel and textiles.
ABFRL, CAIF and its network of innovators and other value chain stakeholders will hugely benefit from these practices.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1056.86 |
USD/Ton |
0.55% |
6/17/2019 |
|
VSF |
1609.84 |
USD/Ton |
-0.89% |
6/17/2019 |
|
ASF |
2492.00 |
USD/Ton |
0% |
6/17/2019 |
|
Polyester POY |
1101.62 |
USD/Ton |
1.06% |
6/17/2019 |
|
Nylon FDY |
2338.96 |
USD/Ton |
0% |
6/17/2019 |
|
40D Spandex |
4331.40 |
USD/Ton |
-0.66% |
6/17/2019 |
|
Nylon POY |
5457.56 |
USD/Ton |
0% |
6/17/2019 |
|
Acrylic Top 3D |
1335.52 |
USD/Ton |
0.54% |
6/17/2019 |
|
Polyester FDY |
2194.58 |
USD/Ton |
-0.65% |
6/17/2019 |
|
Nylon DTY |
2671.03 |
USD/Ton |
0% |
6/17/2019 |
|
Viscose Long Filament |
1234.45 |
USD/Ton |
0% |
6/17/2019 |
|
Polyester DTY |
2613.28 |
USD/Ton |
0% |
6/17/2019 |
|
30S Spun Rayon Yarn |
2379.38 |
USD/Ton |
0% |
6/17/2019 |
|
32S Polyester Yarn |
1696.47 |
USD/Ton |
0% |
6/17/2019 |
|
45S T/C Yarn |
2656.59 |
USD/Ton |
0% |
6/17/2019 |
|
40S Rayon Yarn |
1920.25 |
USD/Ton |
0% |
6/17/2019 |
|
T/R Yarn 65/35 32S |
2310.08 |
USD/Ton |
0% |
6/17/2019 |
|
45S Polyester Yarn |
2685.47 |
USD/Ton |
0% |
6/17/2019 |
|
T/C Yarn 65/35 32S |
2165.70 |
USD/Ton |
0% |
6/17/2019 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0% |
6/17/2019 |
|
32S Twill Fabric |
0.76 |
USD/Meter |
0% |
6/17/2019 |
|
40S Combed Poplin |
1.03 |
USD/Meter |
0% |
6/17/2019 |
|
30S Rayon Fabric |
0.61 |
USD/Meter |
0% |
6/17/2019 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
6/17/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14438 USD dtd. 17/06/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Preferential export taxes offered by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to be promulgated this month. However, the tax reduction is only one of the incentives for Vietnamese goods when entering markets, not a ‘lifesaver’ for businesses, said the Ministry of Industry and Trade (MoIT). The Ministry of Finance (MoF) submitted a decree on preferential export tariffs and special preferential import tariffs of Việt Nam under the CPTPP from the period January 14, 2019 to December 31, 2022. Under the decree, the MoF and General Department of Customs tried to compare the taxes of free trade agreements (FTAs) with the CPTPP so that businesses can choose appropriate preferential tax rates. The preferential tariffs include two country groups. One group has implemented the CPTPP since the end of 2018, including Canada, Australia, New Zealand and Singapore and another group will start from 2019. Accordingly, when enterprises import goods, they need to read the tariff to understand the tax reduction schedule. For example, if the goods are imported from Australia, the roadmap is the second year, while imports from Mexico will come under the first year. It is expected that the tax reduction would be applied to some 300 products. However, businesses are required to have preferential certificate of origin (C/O) to enjoy the preferential tariffs. C/O in CPTPP is a certificate that can be issued to multiple shipments on condition of not exceeding 12 months and can be issued to many different importers. Earlier, Canada immediately eliminated tariffs on fishery products, especially key products of Việt Nam. Rice and products containing rice, coffee, green tea, fruit and vegetables also saw the majority of tariffs eliminated at the time the commitments started. According to the MoIT’s Import-Export Department, many exporters of garment and textile and leather shoes have taken advantage of the C/O principles under the CPTPP when exporting to Canada. In the Japanese market, the majority of seafood products which Việt Nam has an advantage, such as frozen and processed shrimp, enjoy zero tax right after the CPTPP took effect. However, the MoIT said the tax reduction is only one of the preferential items for Vietnamese goods. Businesses still have to ensure their products meet quality and technical standards as well as have certificates of origin from importers. Phạm Thiết Hòa, director of the Investment and Trade Promotion Centre of HCM City (ITPC), said import and export activities of local businesses are subject to control of CPTPP's both incentives and strict requirements. Among 10 members of the CPTPP, Việt Nam signed FTAs with seven countries, of which four countries have relatively high bilateral import-export turnover, reaching nearly US$7 billion. For countries that have not signed bilateral FTAs such as Canada or Mexico, export turnover stood at $4.6 billion and $3.4 billion in 2018, respectively. Particularly, in the first quarter of 2019, Vietnamese goods exported to Canada reached $864 million, up 42.7 per cent over the same period last year. However, for these markets, Việt Nam's exports account for only 1-2 per cent of the total import turnover of each country. With a large market capacity and the difference in tax incentives before and after the CPTPP took effect, Canada and Mexico will be potential export markets for Vietnamese enterprises. In particular, Vietnamese industries which have advantages such as footwear, textiles, aquatic and wood products are predicted to have high export growth rates, if they make good use of incentives. In reality, Vietnamese enterprises have often only paid attention to trade issues such as quality, quantity of goods, time of delivery and receipt, but neglect the legal factors such as applicable law and provisions on dispute resolution. In order to limit this, even at the negotiation stage, Vietnamese enterprises need to actively agree with partners on these components as a way to prevent possible disputes. After four to five months of CPTPP implementation, Việt Nam's trade with some member countries has increased compared to the same period last year. For example, Việt Nam's trade with Canada was increased by over 70 per cent, Mexico over 8 per cent. With Japan, Việt Nam has an agreement within ASEAN, but trade in the past 4 months has also increased by 4 per cent.
Source: Vietnam News
To face the digitalization, sustainability and robotization of the factories, the profile of the workers is also transformed becoming increasingly evident the appearance of new tasks and new profiles. The fashion industry, a sector that has barely evolved in thousands of years, now faces a profound transformation. The new consumption habits, the new socio-economic and geopolitical scenario, the demographic changes and the irruption of technology in all daily tasks also have an impact on the value chain of the sector. Digitization and sustainability open a new era in all its links, which implies the incorporation of new systems in the factories. Itma, the largest fair of textile machinery, will give the keys of what will be the fashion industry of the future in its next edition, which will be held from 20 to 26 June at Fira de Barcelona. There will be 1,600 exhibitors and it is expected to exceed 125,000 visitors. The irruption of the digital era have an impact on the staff. The profile of workers is transformed while new tasks appear in industrial companies. In the same way that it happens in the rest of the economic sectors, the digitalization supposes a challenge in the organizations whose resolution happens one way or another by the formation. The industry does not escape data analysis, online channel management, digital traffic control, mobile applications or content creation. The transformation towards digitalization goes beyond changing blue coats by white coats. In the textile header, the most technologically advanced of the value chain, the automation of processes and even robotization is a reality. The challenge now is the management of the data and the ability to share it with the rest of the actors. Hence, even in the factory, it is not unreasonable to find chief data officers and chief information officers, data analysts or chief experience officers, among others. The processes of spinning, weaving, dyeing and finishing in the European Union have long since technified their processes. During the decades of crisis, the companies that opted to maintain the business in the territory made their survival dependent on technological investment as the only way to reduce costs, advance the development of new products and minimize the impact on the environment, against the toughening of European legislation in this regard. The textile head, which automated processes in the last three decades, is the fashion subsector that has created the most jobs in Spain since 2014. Despite the automation, the header textile has been the one that has taken the lead of the employment of the whole industry of the fashion in the last years. Between January 2014 and January 2019, Social Security affiliates in this category have grown by 14.3%, to a total of 46,853 workers, according to data from the Spanish Ministry of Labor, Migration and Social Security. In the case of clothing, traditionally much more labor-intensive, the advance in employment in this same period has been 3.2%, up to 48,954 workers. The distance between affiliates in textiles and clothing has drastically shortened. In this way, although January 2014 the garment industry had around 7,000 more workers than the textile industry; five years later it adds only one thousand more. In the same way that automation has contributed to the textile industry generating employment, and in addition to higher quality, it is expected that digitalization will advance in the same direction. In the next edition of the Itma fair, of textile machinery, all the products that are exposed will have sensors to extract data, which must be analyzed, interpreted and used, both for the internal management of the factory and to exchange them with other actors. The manufacturers of textile machinery have enriched their staff in the last decade with computer engineers to develop the new software that will help this reading. The manufacturing capacity of machines is now given for granted, because the value lies in all the data they can generate and the ability to take advantage of them. The confection, a step behind From the whole of the value chain, clothing is the only link that is still intensive even in labor. The automation of sewing came alongside with spinning or weaving, in the last third of the last century, but the emergence of new production poles in Asia with very low costs discouraged investment in the technification of garment factories in Europe and the United States. But this supply formula has no route. In Ethiopia, the last mecca of low cost production, the new factories destined to garment manufacture begin to incorporate the first automated sewing systems. In China, investment in new factories composed only of sewing robots is growing by leaps and bounds. For the moment, they only concentrate on the production of mono-product, like white shirts. According to industry experts, there is no turning back on the automation of the clothing or the social impact that may cause in some of the most fragile economies on the planet. To contain the social impact, it is expected that countries like Bangladesh, Vietnam, Cambodia or even Myanmar or Ethiopia begin to diversify their industrial structure with sectors of higher added value, as China did a decade ago. While waiting for the automation of the confection, digitization has also been introduced in its process. The union between retailers and garment manufacturers has been reinforced as they have been interconnecting data. The first scores of personalization in the distribution have meant a leap forward in this sense with a view to gaining speed and efficiency. And in this equation, the proximity to the consumer markets will once again play a determining role.
New profiles
The Business Council for Competitiveness indicated in the Spain 2018 report the positions that will have a greater demand in the development of the digital economy, not only in the industry but in all companies. The biggest challenge for companies in the fashion value chain is not knowing how a digital printer works, a 3D or even a robotic arm for sewing shirts, but managing the avalanche of data that comes with the new era. In this way, the main one will be chief digital officer, responsible for the digital transformation of the company, with a complete vision of the digital business. It will be followed by the chief information officer, responsible for information technology; the director of digital innovation, able to hybridize the traditional tasks with which digitalization entails; the data scientist, who knows the technological architecture of the business; the director of cybersecurity; the head of smart factory, or the director of digital talent, among others.
Source: MDS
According to the Sri Lanka Purchasing Managers' Index (PMI) released by the Statistics Department of Central Bank on Tuesday, the industrial production in Sri Lanka recovered in May 2019 while services sector continued to deteriorate. Manufacturing activities recovered to an index value of 50.7 in May 2019 which is an increase of 9.7 index points, compared to April 2019. The recovery of manufacturing PMI is mainly attributable to the significant increase in Production and New Orders, especially, in manufacturing of textiles, wearing apparels, leather and related products, the Bank said. Increase in production was mainly attributable to the fulfilment of accumulated orders using extra hours of factory operations. Many respondents, especially in textile and apparel sector, highlighted that they had to work extra hours on week days as well as in weekends during the month to clear the backlog of orders. Employment contracted as a slight decline in new recruitments was observed, particularly, in manufacturing of food and beverages sector. All sub-indices of PMI Manufacturing except for Employment and Stock of Purchases recorded values above the neutral 50.0 threshold signaling an overall expansion in manufacturing activities in May 2019 compared to April 2019. Services sector declined further to an index value of 44.7 in May 2019 compared to previous month due to decline in Employment and Business Activity sub-indices, which was mainly caused by Easter Sunday attack. Employment sub index recorded the lowest level since the commencement of the survey in May 2015 and it was mainly due to discontinuation of the service of contract employees with the deterioration in Business Activity. Further, deterioration of Business Activity was also observed in the wholesale and retail trade, and transportation sub sectors. Many respondents highlighted that uncertainty arose from Easter Sunday attack still prevails in the country. Thus, New Businesses and Expectations for Activity continued to decline compared to previous month, yet at a slower pace. Prices Charged in the Services sector increased at a slower rate in May 2019 due to price discounts offered by hotels and other firms in accommodation, food & beverage, and other personal services sub sectors. Moreover, Expected Labor Cost for next three months increased at a higher rate in May 2019.
Source: Colombo Page
MPs accuse government of being 'out of step' with the public after Whitehall rejects pleas for fashion industry crackdown. The government has been accused of being "out of step" with the public mood today, after it refused to accept MPs' recommendations to require fashion retailers to better address environmental and social challenges across their operations. Earlier this year, MPs on the Environmental Audit Committee (EAC) called on the government to introduce moves to force 'fast fashion' retailers to do more to tackle forced labour, environmental destruction, and excessive waste in the industry by reforming tax laws and requiring firms to contribute more towards the clean-up costs for waste garments. But in a formal response to the report, the government today refused to explicitly accept any of the Committee's recommendations. The proposals included plans for a one penny levy on every fashion item sold, which could have raised £35m for a new Extended Producer Responsibility (EPR) scheme that would improve textile collection and recycling services across the country. The government has previously said it is keen to extend EPR schemes to ensure businesses that create waste pay more towards its recycling and re-use, arguing it provides firms with a financial incentive to embrace more resource efficient production and circular economy business models. But in response to the EAC proposals, Defra said it would stick to its original timetable for consulting on a potential EPR for five new waste streams, including textiles, by 2025 - a promise it first made in 2018. It also insisted voluntary programmes like the Sustainable Clothing Action Plan (SCAP) were delivering environmental progress on issues such as carbon emissions on a voluntary basis, pointing out that signatories to SCAP have reduced their water and carbon footprints by 17.7 per cent and 11.9 per cent respectively between 2012 and 2017. But following an in-depth investigation into the fast fashion sector, the EAC concluded this year that a voluntary approach has "failed". Textile production creates an estimated 1.2 billion tonnes of CO2 equivalent each year, more than international flights and maritime shipping combined. Meanwhile, a report from the Ellen MacArthur Foundation put the annual cost to the UK economy of landfilling clothing and household textiles at about £82m. The EAC called for SCAP membership to be a mandatory requirement for fashion firms with an annual turnover of more than £36m a year - a call the government rejected today in favour of its strategy to "encourage the wider industry" to take part in the scheme. The government also rejected calls from the EAC to ban the incineration or landfilling of unsold stock that can be reused or recycled, explaining that it believes "positive approaches are required to find outlets for waste textiles rather than simply imposing a landfill ban". Proposals for reducing VAT on repair services - as Sweden has done - were also dismissed, with the government arguing there is "little evidence" the move has helped Sweden in boosting reuse and repair services. EAC chair Mary Creagh today accused the government of being "content to tolerate practices that trash the environment and exploit workers despite having just committed to net zero emission targets"."The government is out of step with the public who are shocked by the fact that we are sending 300,000 tonnes of clothes a year to incineration or landfill," she said. "Ministers have failed to recognise that urgent action must be taken to change the fast fashion business model which produces cheap clothes that cost the earth." A British consumer buys on average of 26.7kg of new clothes every year - far more than any other European country. But according to a survey of fashion retailers published this month by trade magazine Drapers, more than 91 per cent said their customers are showing more interest in environmentalism, and 85 per cent said the government was not doing enough to help the fashion industry become more sustainable. Almost 69 per cent of respondents agreed with the idea of a one penny producer responsibility charge, and the EAC's other proposals all garnered the support of 90 per cent of respondents. The British Retail Consortium, the trade body for the retail sector, represents some of the UK's largest fashion firms including Gap, John Lewis, ASOS, New Look, Primark, and Reiss. In a statement it said its members are already taking action to be more sustainable, although it admitted retailers also recognise "more needs to be done"."Our members are increasing the use of sustainable materials, designing garments that are made to last, and encouraging customers to return unwanted clothes for reuse, so they can turn old t-shirts into new ones," pointed out Andrew Opie, director of food and sustainability at the British Retail Consortium. "The industry will work with the government as part of the Resources & Waste Strategy to reduce waste and will continue to find ways to make fashion more sustainable." With the government signalling it will not consider a more demanding producer responsibility scheme until 2025 at the earliest it looks like the industry has been given yet another chance to clean up its act. But with online fashion brand Missguided seeing criticism of its newly launched £1 bikini made from a plastic-based material going viral on social media this weekend, the industry should be under no illusions that calls for it to enhance its sustainability credentials will now in wane. Moreover, any future government now has a ready made set of off-the-peg policy proposals for boosting clothes recycling rates and driving more circular models. The EAC is surely right to argue that wastefulness is no longer in fashion, regardless of the government's conclusions.
Source: Business Green
