The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19TH DEC 2019


National

International

National

 

Demand slowdown, costly raw materials to hit local spinners: Icra survey

Domestic spinners’ performance in the first half of current fiscal (H1 FY2020) is expected to weigh on full year’s performance. Despite industry’s gradual recovery, most spinners expect revenues to fall by more than 5% and operating profitability to contract by around 3% for FY2020, said an Icra survey on Tuesday. Though the industry is gradually recovering from the slowdown, the domestic spinners expect the overall FY2020 performance will be weighed down by the tepid volumes and weak earnings seen in the first half of the fiscal. Some of the key reasons include weak export demand amid increasing competition from other producing countries and sluggishness in domestic consumption levels. Higher domestic raw material costs, with Indian cotton prices trading at a premium to international cotton also contributed to the loss of export competitiveness. Buoyed by the improvement in exports witnessed since October 2019, the survey indicates that the industry pins its hopes on a continued gradual recovery in cotton yarn exports over the coming quarters, aided by the softening of domestic cotton prices, Icra said. The other survey findings include: the likelihood of cotton prices to remain below the minimum support price level till March 2020 on expectations of a bumper crop production in CY20; yarn prices and contribution levels to continue to tread lower than the FY2019 levels even though yarn prices have started moving up; increase in working capital debt levels by 15% y-o-y, reflecting the inventory build-up amid shortfall in earnings; and limited capacity additions are envisaged over the next 12 months. While most industry participants expect operating profitability to contract by around 300 bps in the current fiscal, some respondents anticipate higher correction reflective of the difficult times being faced by the sector. The fall so far has been steeper for companies which had stocked and carried over higher-cost cotton (at around Rs. 130/kg) into the current fiscal. While the domestic cotton prices have reduced from July 2019, the decline in yarn prices has been sharper, resulting in contribution levels adjusted for cotton stock held falling to around Rs. 75/kg in Q2 FY2020. Even though yarn realisations have improved in recent weeks, the respondents do not expect any major uptick in yarn prices, given the low cotton prices witnessed as the industry expects the crop output in the current season to be healthy at more than 375 lakh bales. According to the survey, cotton and yarn prices are likely to remain range-bound at around Rs. 110-115/kg and Rs. 195-205/kg, respectively in H2 FY2020. As a result, the spinners expect average contribution levels for the fiscal to be at Rs. 80/kg (with contribution likely to improve to around Rs. 82-85/kg in H2 FY2020 as against FY2019 levels of Rs. 95/kg). The survey findings also highlight that the working-capital debt levels of spinners have increased, because of a pile-up in yarn stocks and some elongation in the receivables cycle owing to the tepid demand conditions. Respondents expect average utilisation of fund-based limits to be at around 90% in FY2020, higher from the 75% levels seen in the last fiscal. On the back of these adverse developments, coupled with average capacity utilisation levels in the industry falling by around 500 bps to 82% in H1 FY2020, a vast majority of the respondents have indicated that no capacity expansion is being planned over the next 12 months. Jayanta Roy, senior vice-president and group head, corporate sector ratings, Icra, said: “The Indian cotton spinning industry’s performance has been severely constrained in the current fiscal, being adversely impacted by the demand slowdown, unfavourable raw material prices and rising funding requirements. While export volumes have seen some uptick in recent months, as against the sharp degrowth witnessed between May-September 2019, they remain lower than the levels seen in the preceding fiscal.”

Source: Financial Express

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Industry demands export promoting measures, simplification of labour laws

Finance Minister Nirmala Sitharaman on Tuesday held discussions on regulatory environment impacting private investment and measures for promoting exports in a pre-budget consultation with stakeholder groups from industry, trade and services sectors. The representatives submitted suggestions concerning reduction of compliance burden and tax litigation, allowing self-certification in low risk industry, decriminalisation of tax and company laws. Besides, they demanded reduction of cost of equity capital, simplification and rationalisation of duties and labour laws, adoption of international standards of alternative dispute resolution, export development funds for helping MSME exporters and ease of investment flow into manufacturing sector. "The main areas of discussion during the aforesaid meeting included regulatory environment impacting private investment, measures for promotion of exports amidst rising protectionist tendencies, industrial production, logistics, media & entertainment services & IT & IT enabled services among others," an official statement said. Speaking to reporters after the meeting, CII President Vikram Kirloskar said:"They (ministers and government officials) have understood the situation, the headwinds in the economy and they have looked at all the possible suggestions whether it is to have fiscal easing which is what we have suggested, various ways to improve tax collection, improve demand". Ficci President Sandip Somany said the meeting delved into infrastructure bottlenecks in terms of the rules, regulations which can help free up business. Assocham Secretary General Deepak Sood said a common suggestion was how to increase the demand side of the economy and inject liquidity into the system. PHD Chamber of Commerce and Industry President D K Aggarwal said the chamber has sought creation of a Rs 25,000 crore fund for stressed micro, small and medium enterprises sector which faces difficulty in availing funds from banks and NBFCs. FIEO President Ajay Sahai said the exporters' body has highlighted the liquidity concerns of exporters and sought rollout of e-wallet recommended by the GST Council to ease liquidity of exporters. The meeting was also attended by Minister of State for Finance and Corporate Affairs Anurag Thakur; Finance Secretary Rajeev Kumar; Economic Affairs Secretary Atanu Chakraborty; Revenue Secretary Ajay Bhushan Pandey; among others.

Source: The Economic Times

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MSP hike hits exports, only 600,000 bales shipped so far

India's cotton exports have slowed down in the current marketing year that began on Oct 1 due to higher domestic prices following a hike in the minimum support price and in view of the depressed global prices, market experts said. The ongoing procurement by state-owned Cotton Corp of India lifted the price floor to around 38,500 rupees a candy (1 candy = 356 kg) or 74 cents a pound, while global prices are hovering around 72 cents, making exports largely unviable barring some grades of cotton. The Number Is Just About 50-60% Of The Normal Export Contracts This Time Than In The Past Few Years. So far only 600,000-700,000 bales (1 bale = 170 kg) have been shipped out, and the total export contracts are yet to hit the 1-mln-bale mark, said Manish Daga of Cotton Guru. The number is just about 50-60% of the normal export contracts this time than in the past few years. These export contracts were struck at 73-74 cents per pound, of which 75% were from Bangladesh, and the rest from China and Vietnam. Government procurement may gain pace later this month when good quality cotton crop enter the markets. This could tighten prices further and halt exports, unless global prices recover and make exports competitive, trade officials said. "Cotton exports are not that viable as Indian cotton is being offered at 74 cents a pound, around 2 cents higher compared with the global market," said Dharmendra Jain, director of Ahmedabad-based DP Cotton. The Cotton Association of India has pegged annual exports at 4.2 mln bales, while the Cotton Advisory Board and trade officials have estimated the exports at around 5.0 mln bales. The association has estimated exports until November at 500,000 bales. Cotton exports are also lower due to poor quality in the wake of excessive and prolonged rains, and trade ban between India and Pakistan, said a prominent Mumbai-based exporter. Abnormally high rainfall in October in cotton growing states led to germination and waterlogging, which affected the yields and quality of the standing crop. The Cotton Association of India has projected the country's production at 35.45 mln bales in the current season, up 13.6% from the previous year.

Source: Cogenics

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Piyush Goyal to meet 4 state industry ministers

In the runup to the budget, commerce and industry minister Piyush Goyal will meet trade ministers of four states on Thursday to prepare a roadmap to make every district in the country a hub of exports. The meeting follows Goyal’s consultation with industry captains, including Bharti Airtel chairman Sunil Bharti Mittal on Wednesday and Tata Group chairman N Chandrasekaran on Tuesday on their respective groups’ investment plans and the issues they face. Industry ministers of Haryana, Gujarat, Uttar Pradesh and Telangana will put a framework in place to promote industry and exports through their districts, sources said. While the Tata Group made presentation about its investment plans and the hurdles in being able to meet those, as per sources, Mittal said he discussed the Bharti Group’s matters mainly on the infrastructure side as it has large investment plans for telecom towers, solar and real estate. “We discussed what all areas we are investing in, what are the bottlenecks and where all we need his help,” Mittal said, adding that the group wants faster clearances, and has asked support in declaring tower industry as infrastructure. “We need his help in clearance from aviation authority, real estate side, solar, there are issues around larger bids for solar parks,” he said.  He said his group spends Rs 15,000-20,000 crore each year on telecom and wants to achieve 20 GW of capacity in solar. The 2020-21budget is likely to touch upon the issue of districts being made export hubs on the lines of Prime Minister Narendra Modi’s Independence Day speech in which he urged each district to think of becoming an export hub. “The states have to put together a framework that includes a nodal officer, who will be a link between the district, Centre and respective state,” said an official. The government wants every district to have an export profile and an action plan, and it will circulate a guidance note in every district on the concept of export hub and the outcomes targeted with details on relevant government schemes for export facilitation, credit provisioning and MSMEs. The consultations come at a time when the government is trying to boost investment, both domestic and foreign, amid a slowing economy. Goyal also met Confederation of Indian Industry (CII) president Vikram Kirloskar, and is also likely to meet various export promotion councils this week to discuss the upcoming foreign trade policy as the country’s outward shipments contracted for the third month in a row in November.

Source: The Economic Times

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Smt. Nirmala Sitharaman holds Pre-Budget consultation with Finance Ministers of State/UTs

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman held the Pre-Budget consultations with Finance Ministers of States and UTs (with legislature) here today. The meeting was attended by Chief Ministers of Goa, Haryana and Puducherry, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Delhi, Tamil Nadu and Tripura as well as 17 Finance Ministers/Ministers representing their states and senior Officers from Union Government and States. Union Minister of State for Finance & Corporate Affairs Shri Anurag Singh Thakur also attended the meeting. Smt. Sitharaman elucidated Union Government's philosophy of "Cooperative Federalism" and steps taken by the Union Government to bolster growth of the economy. State Governments welcomed the opportunity to present their views and expressed their suggestions on growth, investment, resource requirement and Fiscal Policy. They also suggested measures to strengthen cooperation between States and Centre to attain $5 trillion economy. The Finance Minister welcomed the suggestions made by the State/UTs in the meeting. She assured that the memorandums submitted by State/UTs will be examined and suitably considered.

Source: Press Information Bureau

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GST Council’s decisions On Rate Changes

The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here today. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of Ministry of Finance. The GSTCouncil recommended the following relating to changes in GST rates, exemptions.

1. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1st January, 2020.

2. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become effective from 1st March, 2020.

3. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305)in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January, 2020.

Source: Press Information Bureau

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FinMin sets Rs 1.1 lakh crore monthly GST collection target

Officers have been particularly urged to ensure that during field enforcement drive and visits, no taxpayer is overreached or troubled, the source said. Amid talks of the government likely to miss tax collection target this fiscal, the Finance Ministry has set a Rs 1.1 lakh crore monthly GST mop-up target for the remaining four months of 2019-20 financial year, ministry sources said. Revenue Secretary Ajay Bhushan Pandey had a video conference meeting with top tax officials and impressed upon them to step up measures to achieve direct and indirect tax collection target. Officers have been particularly urged to ensure that during field enforcement drive and visits, no taxpayer is overreached or troubled, the source said.

Source: The Economic Times

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Tripura gets its first SEZ

The Ministry of Commerce and Industry has notified the setting up of the first ever Special Economic Zone (SEZ) in Tripura on December 16, 2019. The SEZ is being set-up at Paschim Jalefa, Sabroom, South Tripura District, which is 130 km away from Agartala. It will be a Sector Specific Economic Zone for Agro-Based Food Processing. The estimated investment in the project will be around 1550 Crore. The developer of the SEZ will be Tripura Industrial Development Corporation (TIDC) Ltd. The SEZ is estimated to generate 12,000 skilled jobs. Rubber based industries, textile and Apparel Industries, bamboo and Agri-food Processing Industries will be set-up in the SEZ. Setting up of the SEZ in Sabroom will open up new avenues to attract private investment considering the proximity of the Chittagong Port and construction of the bridge across Feni River in South Tripura which is underway. After it is set up, 100 percent Income Tax exemption will be provided on export income for SEZ units under Section 10AA of the Income Tax Act for the first 5 years. Also 50 percent exemption will be provided for the next 5 years and 50 percent of the ploughed back export profit for another 5 years.

Source: Press Information Bureau

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Rupee opens 3 paise down at 71 against dollar

The rupee on Thursday opened nearly 3 paise down at 71 against the US dollar on account of some selling in American currency by banks and exporters. The local currency on Wednesday consolidated in a narrow range for the third successive session on Wednesday following major cues on the domestic as well as global front. “Volatility could increase in the near term as market participants remained cautious ahead of the final GDP number that will be released from the US. Expectation is that the number could remain unchanged in Q3 thereby keeping the volatility low for the dollar,” Motilal Oswal Financial Services said. The House of Representatives formally charged Donald Trump with abuse of power and obstruction of Congress. Donald Trump became the third US president to be impeached as the House of Representatives. The vote sets the stage for a trial next month in the Republican-controlled Senate - friendlier terrain for Trump - on whether to convict and remove him from office. “Today, USDINR pair is expected to quote in the range of 70.70 and 71.20,” Motilal Oswal said. The local currency settled at 70.97 against the US dollar in the previous session. Pound continued to remain under pressure even after inflation in UK remained unchanged in November compared to the previous month. Market participants will be keeping an eye on the Bank of England policy statement and expectation is that the central bank could maintain a status quo.

Source: The Economic Times

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International

Indonesia: Outlook 2020: Textiles: Working together to revitalize textile industry

With Idul Fitri in May 2020 on the horizon, businesses in the Indonesian textile and textile products (TPT) industry should be anticipating a busy start to the year to meet the expected growth in demand ahead of the biggest annual Muslim festive period. But the prolonged and complex pressures faced by the labor and capital intensive TPT industry may result in a different story this year. The industry — centered mostly in the densely populated provinces of West and East Java — has seen an increasing number of business closures. Expected growth in unemployment is one serious short-term impact. But what will happen to this distressed industry, which contributes 1.3 percent of the country’s gross domestic product, in the longer term? Why is Indonesia — listed as one of the world’s top 10 textile and apparel producers — facing such challenges in its TPT sector, despite recent positive indicators? Exports in 2019 are estimated to be worth about US$15 billion, up from $13.2 billion the previous year. How is Vietnam, a relative newcomer to the sector, forging ahead with its exports expected to be worth $40 billion in the same period? Why is the Indonesian textile market flooded with cheap garments, curtains, scarves or even bed sheets from other countries? What makes our production costs so high? How come only one-third of the 3.1-million-ton national capacity is utilized? Concerned with this situation, President Joko “Jokowi” Widodo has over the last two months held two meetings, in September and November, with the two main TPT industry associations — the Indonesian Textile Association (API) and the Association of Indonesian Filament Yarn and Fiber Manufacturers (APSyFI). His questions were straightforward: What are the critical challenges faced by the industry? What are the recommendations? What and how can the government help? Some actions have been quickly executed by his ministers as a follow-up. After a recent inspection at a bonded logistics center (PLB), Finance Minister Sri Mulyani Indrawati found irregular practices at the site and revoked dozens of licenses of TPT importers. These irregular practices at PLBs are considered to be among the main contributing factors causing a flood of imported cheap materials into the domestic market. The finance minister also issued temporary safeguard measures on several TPT commodities. Related ministries and agencies, including the Investment Coordinating Board (BKPM), are expected to follow suit with longer-term strategic plans to rescue the industry. As a key textile market and exporter, the Indonesian TPT industry has had its share of turbulence over the years. During the honeymoon period in the 1980s, the industry enjoyed strong support from the government, to a point where then-president Soeharto was able to inaugurate 192 TPT factories at a single ceremony in 1982. But the onset of the 1997 financial crisis, followed by the 1998 Reformasi, saw the industry enter one of its darkest periods. Debt, decentralization, stringent regulations, numerous licenses and labor costs hindered the development of the sector, limited investment and, consequently, lowered productivity. Business owners gradually shifted their investments to garments, or other appealing sectors like property. While other TPT producers, like China, Vietnam, Bangladesh and India, aggressively reformed, Indonesia’s TPT sector stagnated and lost its competitive edge. A few years later, the sector was further hit with an influx of goods from overseas following the implementation of the ASEAN-China Free Trade Agreement in early 2010. Now, with the current global economy slowing down, the United States-China trade war, aging and inefficient textile machines, a growing number of regulations, minimal investment, high electricity prices and labor issues have all become even bigger contributing factors behind the sluggish development of the textile sector. The growing world population, together with rapid urbanization, rising income levels and increasing numbers of retail outlets and online markets in developing countries, is expected to drive the global textile market up to $1.23 trillion in 2025 from about $860 billion in 2019. Meanwhile, the Indonesian government has set a target to increase. Indonesia’s share of the global TPT market from its current level below 2 percent to 5 percent, with a total value of $75 billion, in 2030. The good news is domestic demand is still promising. According to API, Indonesia’s revenue from the apparel market is to grow annually by a compound annual growth rate of 5.4 percent in 2019 to 2023. In 2019, it is expected to reach $18.1 billion. Learning from the success of other textile producing countries, Indonesia under the current administration has a great chance to survive and win. But timing is paramount, as some experts have described the current status as a do-or-die situation. Among the top priorities of the President and his Cabinet, in terms of revitalizing the TPT sector, are the establishment of textile parks, simplification of regulations and licenses, curtailing the growing number of illegal imported TPT products, microcredit schemes for small and medium-sized textile businesses, addressing the alleged misuse of PLBs, the issuance of inland free trade agreements and controlling imports of raw materials. Businesses, together with industry experts, have responded with a range of recommendations, including control over imports of raw materials, subsidized electricity prices, the presence of the government’s TPT-focused agency and the establishment of more textile research and education facilities, as part of a massive overhaul program to transform the industry. In terms of solutions, there are some broad areas that businesses and the government can focus on. First, working together with the government is critical in order to tackle the issues head on. The industry also needs to form strategic collaborations with brands, retailers, fashion designers, fashion editors and design school students. Second, the domestic market should be protected to allow the industry to revamp and expand. Opportunities to streamline regulations to support growing local market demand and rising exports should be considered. Once Indonesia signs the Comprehensive Economic Partnership Agreement with the European Union, which is anticipated in early 2020, exports are expected to rise significantly. Third, the government needs to consider how to best optimize upstream capability. Textiles, together with four other industries (food and beverages, electronics, petrochemicals and automotive), has been listed by President Jokowi as one of the government’s top industry priorities in the Making Indonesia 4.0 road map. But a high dependency on imported raw materials could continue to weaken Indonesia’s position in the global TPT industry. The risks of this kind of dependency were evident this year in India, another major global TPT producer. Over 2019, India recorded a massive 200 percent increase in its viscose staple fiber (VSF) yarn imports, forcing domestic yarn manufacturers in India to lower prices. This in turn led to financial difficulties for local producers. The national textile association sought to address the issue by requesting an increase of import duty on VSF yarn from 5 percent to at least 10 percent. Fourth, businesses and the government should consider global eco-conscious fashion trends. The United Nations Alliance for Sustainable Fashion, established in March 2019, is targeting the private sector, UN member states, NGOs and other relevant stakeholders to create a unified movement for a more sustainable fashion industry in line with sustainable practices and ensuring traceability, sustainable sourcing, responsible manufacturing and labor rights. Part of the solution almost certainly lies in viscose rayon. Less well known than other alternative fibers like cotton, the global production of viscose rayon rose from 2 million tons in 1990 to 5.6 million tons in 2018, with an expected increase to 8.6 million tons in 2020. The forecast growth is estimated at 4.27 percent per annum from 2019 to 2024. Indonesia is currently one of the world's largest producers of rayon with a total capacity of 800,000 tons per year. With domestic consumption ranging between 350,000 and 400,000 tons per year, the production of viscose rayon has abundant potential to boost local demand and reduce imports. In conclusion, 2020 may be another challenging period for Indonesia’s TPT industry. Immediate and far-reaching solutions and partnerships are critical to support the government in addressing these issues, but viscose rayon certainly represents a significant opportunity for progress. One thing is for sure: The status quo is not an option.

Source: Jakarta Post

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Vietnam textile sector orders hit by African competition

Vietnamese textile firms are witnessing declining orders as buyers are moving to cheaper developing countries, especially in Africa. Many businesses this year do not have enough orders for 2020, with a few have reported a 20 per cent drop in orders from last year. Many have not signed long-term contracts for products, but only monthly or quarterly ones. Normally, by the end of a year they would have enough orders for the whole of the following year, according to Nguyen Van Thoi, chairman of TNG Investment and Trading JSC, which makes garments. An anonymous Vietnam Textile and Apparel Association (VITAS) official told a Vietnamese newspaper that many orders have shifted to emerging countries in Africa, while competition with textiles superpowers like China, India and Bangladesh is becoming increasingly fierce.

Even China’s orders are being transferred to countries with preferential tariff rates such as Bangladesh and Cambodia. Even the fibre industry is facing increasing competition from foreign businesses and rivals in countries such as India, Thailand and Indonesia, he added. Experts had forecast at the beginning of the year that the US-China trade war and new free trade agreements (FTAs) signed by Vietnam would help it increase textile exports, but had done a U-turn by mid-year to say there would be a lack of orders, VITAS said. This is due to a slowdown in the global economy, affecting consumer demand, and failure by Vietnamese enterprises to adopt radical solutions to comply with FTAs’ rules of origin, VITAS explained. Some 70 per cent of the fabric used to produce garments in Vietnam is imported from mainland China or Taiwan, VITAS chairman Vu Duc Giang said. Other difficulties being faced by Vietnam’s textile industry include rising costs of raw materials from China and lower prices demanded by foreign buyers. Vietnam is losing its low labor cost edge over other countries even as its use of technology in production remains limited, leading to reduced competitiveness, VITAS said. Garment exports in the first 11 months of this year were up nearly 8 per cent year-on-year to $30 billion, according to figures from the ministry of industry and trade.

Source: Fibre2Fashion

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Vietnam keen to improve trade, investment cooperation with Pakistan

Deputy Director General of Vietnam’s Ministry of Industry & Trade Do Quoc Hung, who led a high level Vietnamese delegation to Karachi Chamber, said that Vietnam’s global trade turnover was more than US$500 billion this year, of which Pakistan-Vietnam trade volume was around US$600 million only which was way too low against the expectations and potentials. “This meager trade volume can certainly be improved as both countries have many advantages and potentials while Vietnamese government is keen to improve trade and investment cooperation with Pakistan”, he added while speaking at a Business-to-Business meeting between Vietnamese delegates and KCCI members. Commercial Counselor of Vietnam Nguyen Hong Tien, Acting President KCCI Arshad Islam, Vice President KCCI Shahid Ismail, Chairman of KCCI’s Diplomatic Missions & Embassies Liaison Subcommittee Shamoon Zaki, Chairman Fairs, Exhibitions & Trade Delegations Subcommittee Haroon Qaiser, Managing Committee members and others were also present at the meeting. Highlighting some of the advantages and potential for developing trade and investment cooperation, Deputy DG of Vietnam’s Ministry of Industry & Trade said, “Vietnam and Pakistan have been enjoying very good political and friendly relations while the two countries are huge markets as Vietnam’s population is roughly 100 million and Pakistan’s population is double of Vietnam’s population hence there is a great demand for numerous commodities on both sides.” “Moreover, Pakistan’s business community can consider Vietnam as gateway to ASEAN (Association of South East Asian Nations) region and can also benefit from the Free Trade Agreements (FTAs) which have been signed by Vietnam with many countries around the world”, he added. He said, “As Vietnamese government is keen to develop trade and investment cooperation with Pakistan, this trade delegation has been sent which comprises of manufacturers and suppliers of spices, health supplement, herbal drinks, rice, wheat, coffee, animal feed, frozen seafood, confectionery & beverage, biological products, agricultural products and frozen seafood etc.” Vietnamese Deputy DG was of the opinion that Karachi Chamber with a strong membership base of 23,000 direct and more than 55,000 indirect members was the right platform which can bridge and connect the business communities of the two countries. He hoped that today’s Business-to-Business event organized by Karachi Chamber would pave way and present good opportunity to Vietnamese companies to get connected with Pakistan companies. He also requested Karachi Chamber to arrange a similar delegation to Vietnam next year which will be fully assisted and facilitated by the Vietnamese government. Earlier, Acting President KCCI Arshad Islam, while commenting on bilateral trade between Pakistan and Vietnam, pointed out that during 2018, Pakistan exported goods to Vietnam worth $282.25 million while the imports from Vietnam stood at $412.37 million which was way too low as compared to the potential. Hence, the business communities will have to enhance linkages to improve the meager trade volume between the two countries. He was of the opinion that Pakistan needs to seek Vietnam s help in accessing economic community of ASEAN for greater market share while Vietnamese investors can invest in energy, electricity, textile material, vehicle component and agricultural goods processing units. Arshad Islam also stressed the need to exchange trade delegations to boost bilateral engagement and market research among the business communities. Vietnam and Pakistan should take part in each other s trade fairs and exhibitions. He said that Vietnam has good expertise in producing hydropower and it could cooperate with Pakistan in this field. Vietnamese investors should visit Pakistan to explore Joint ventures (JVs) particularly in seafood sector by jointly setting up shrimp farming and processing units, besides looking into the possibility of investing in China Pakistan Economic Corridor (CPEC). He further mentioned that the cost of Vietnamese visa on arrival was $190 for Pakistanis where as it was just $10 for Indians. This is a glaring disparity which is limiting trade and people interaction between the two countries. There is an utmost need to remove such anomalies so that business relations between the two countries can realize their full potential, he added.

Source: Dunya News

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Starts cool, stays cool fabric technology at Heimtextil

Swiss textile innovator HeiQ has added bio-based thermo-functional polymer products to its HeiQ Smart Temp family for a full range of intelligent thermoregulation triggered by body heat. The newly introduced products add dual-action cooling at contact to the already successful dynamic evaporative cooling technology, the company reports. “Launched in 2011, HeiQ Smart Temp was a pioneer in intelligent thermoregulation technology for textiles. Continuous refinements of this product range have allowed HeiQ to be the go-to solution provider as its technologies offer not only industry-leading dynamic evaporative cooling performance, but also ease of application and a friendly price point for brand partners,” HeiQ said in a statement today. “The latest breakthrough with cool touch technology allows consumers to touch, feel and understand the technology at point-of-sale, and ensures thermal comfort at all times by providing the benefits of cool at contact and continuous evaporative cooling. It is currently optimized for use on home textile products such as mattress ticking and bed linens. All HeiQ Smart Temp products are Oeko-Tex Class 1-4 conform, bluesign and USDA BioPreferred pending. As the demand for thermo-functional polymer applications continues to grow, HeiQ created HeiQ Iberia to focus on this product development. There are three new products (two more in the pipeline) in the range that all provide instant cooling from a bio-based thermo-functional polymer, and each product is optimized to perform on specific items such as mattress ticking or bedding accessories. By adding a new category of products to the range, HeiQ now has a broad range of intelligent thermoregulation solutions for home textile market. HeiQ is launching these products for home textiles with their partner Standard Fiber at Heimtextil Frankfurt (7-10 January 2020). “We have more and more business developing around temperature-regulating technologies”, says Sandy Gray, CEO at Standard Fiber LLC. “To support our mission of continuously introducing new technologies and innovations to our customers, we are excited to work with HeiQ and present HeiQ Cool Touch technologies to our customers to elevate and differentiate their products in the market”.

Source: Innovation in Textiles