German safety and quality expert TÜV SÜD has announced that it will organise a series of knowledge sharing sessions for the textiles and fabric sector. The knowledge sharing sessions will be in the form of seminars at select locations in India and Bangladesh and through digital platforms like webinars and technical guidance mailers for a larger audience.


          The seminars will be conducted every month in Tiruppur, Bengaluru and Gurugram in India and Dhaka in Bangladesh. The seminars and webinars will focus on the common issues faced by manufacturers and buyers from the textile sector across India and Bangladesh.


          The sessions will aim at helping manufacturers to overcome the practical issues on RSL testing, physical testing and root cause analysis to name a few.


          TÜV SÜD supports safety and quality requirements of textile and fabric manufacturers while helping brands to minimise costs with its testing, inspection, certification, training and knowledge services. TÜV SÜD specialises in services like fabric testing, analytical testing, apparel inspection and final random check. Across the globe, TÜV SÜD works with leading internationals brands of repute to help them focus on quality. Their state-of-the-art consumer testing laboratories and consumer testing services ensure apparel and fabric products manufactured and retailed are of the finest quality.


          At a technical level, TÜV SÜD also offers factory audit services and factory inspection services to address integral aspects in manufacturing such as efficiency and maintenance. TÜV SÜD also provides advisory services to textile manufacturers in India to drive product innovation, process and production management across the textile value chain from fibre to garment. It follows a multi-pronged approach towards quality, safety and efficiency in textile manufacturing. TÜV SÜD’s Research and Development Advisory Service includes a team of global experts who deliver customised safety and quality solutions for Indian textile manufacturers.


Source : http://www.fibre2fashion.com/

          In its sixth Bi-monthly Monetary Policy Statement, 2016-17, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent. The reverse repo rate remains unchanged at 5.75 per cent, and the MSF rate and the Bank Rate at 6.75 per cent.


           “The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth,” the RBI said in a statement.


          Explaining the main considerations underlying the decision, the MPC said it is of the view that the persistence of inflation excluding food and fuel could set a floor on further downward movements in headline inflation and trigger secondorder effects. Nevertheless, headline CPI inflation in Q4 of 2016-17 is likely to be below 5 per cent. Favourable base effects and lagged effects of demand compression may mute headline inflation in Q1 of 2017-18. Thereafter, it is expected to pick up momentum, especially as growth picks up and the output gap narrows. Moreover, base effects will reverse and turn adverse during Q3 and Q4 of 2017-18. Accordingly, inflation is projected in the range of 4.0 to 4.5 per cent in the first half of the financial year and in the range of 4.5 to 5.0 per cent in the second half with risks evenly balanced around this projected path.


          In this context, the MPC notes three significant upside risks that impart some uncertainty to the baseline inflation path – the hardening profile of international crude prices; volatility in the exchange rate on account of global financial market developments, which could impart upside pressures to domestic inflation; and the fuller effects of the house rent allowances under the 7th Central Pay Commission (CPC) award which have not been factored in the baseline inflation path.


          However, the focus of the Union budget on growth revival without compromising on fiscal prudence should bode well for limiting upside risks to inflation, the Committee said.

The MPC said it remains committed to bringing headline inflation closer to 4.0 per cent on a durable basis and in a calibrated manner. This requires further significant decline in inflation expectations, especially since the services component of inflation that is sensitive to wage movements has been sticky. The committee decided to change the stance from accommodative to neutral while keeping the policy rate on hold to assess how the transitory effects of demonetisation on inflation and the output gap play out.


          The MPC added that it believes that the environment for timely transmission of policy rates to banks lending rates will be considerably improved if (i) the banking sector’s nonperforming assets (NPAs) are resolved more quickly and efficiently; (ii) recapitalisation of the banking sector is hastened; and, (iii) the formula for adjustments in the interest rates on small savings schemes to changes in yields on government securities of corresponding maturity is fully implemented.


          The next meeting of the MPC is scheduled on April 5 and 6, 2017.


Source : http://www.fibre2fashion.com

          Domestic firms should make great efforts in the competition with foreign invested firms to contribute more actively to the global value chain and participate more effectively in the world’s production network, experts said.


          Central Institute for Economic Management (CIEM) former director Le Dang Doanh told Nguoi Lao Dong (The Labourer) newspaper that foreign direct investment (FDI) firms had greatly contributed to Việt Nam’s economic growth, accounting for around 70 per cent of national export turnover while domestic enterprises had not yet deeply involved in the global value chain.


          According to the General Statistics Office, in 2016, Việt Nam’s export turnover reached over US$175 billion, up 8.6 per cent year-on-year. Of the estimate, the export value earned by FDI enterprises reached more than $120 billion, up 10.2 per cent against the previous year.

Doanh said domestic enterprises had been urged to improve capacity and enhance competitiveness right when the contribution of FDI firms in the export value was standing at 50 per cent. However, until now, when the rate had risen to 70 per cent, local firms still remained passive in global value chains.


          Export over the years contributed greatly to the economy -  if in 2001, the national export turnover reached $15 billion, then 10 years later, the number rose up to $97 billion, Doanh said, adding that this achievement was largely achieved by the FDI sector.


          The significant presence of FDI companies in exports partly reflected the low level of competitiveness exhibited by domestic businesses, he said, adding that a major part of Vietnamese firms were just joining in the low value outsourcing service industries.


          According to Ngo Duc Hoa, chairman of Thang Loi Textile Garment JSC, all of Thắng Lợi’s products serving domestic use are self-designed, produced and distributed. But for the exported goods, the company just provides “cut and sew” services for foreign partners, meaning that the firm creates apparel and accessories out of materials owned by the foreign companies that contract them.


          The biggest difficulty textile exporting enterprises is facing is the lack of raw materials for production, leading to the only option of importation. In addition, Vietnam’s textile and garment industry hasn’t thrived yet, thus gaining low attention from customers.


          Due to the fact that the firm is only hired to “cut and sew” products for foreign partners, they have to use raw materials supplied by the partners or import the materials themselves. If an exported T-shirt costs $10, the company has to spend $8.5 to import materials and earn only $1.5 for processing services.


          "It is not an exaggeration to say textile enterprises pinch pennies for a living," Hoa said.

Even for high-technology industries such as power, electronic and telecommunication, most of domestic enterprises are hired for providing outsourcing services for exported goods.


          According to Vu Thanh Tu Anh from Fullbright Teaching Program, a recent research of Fullbright’s specialist group summarising the 10-year period that Intel invested in Việt Nam showed a number of sad results.


          Tự Anh said Vietnamese enterprises account for only 3 per cent of Intel’s total exporting value and are involved in some steps of meals provision, gift boxes preparation and security services, which are the services that Intel can’t import.


Mobilising all sources for domestic enterprises

          At the recent Prime Minister’s roundtable conference with global specialist network on Vietnam’s development, Prof. Tran Van Tho from Japan-based Waseda University said in the context that Việt Nam was actively and thoroughly integrating in the world’s economy, avoiding the “outsourcing trap” was a significant challenge, drawing high attention of policy makers.


          According to Doanh, Vietnam’s economy strongly depending on the FDI sector may become alarming issue as when the economic advantages vanish, the FDI capital flow may be diverted to other countries. This is actually what’s happening with our textile industry as outsourcing service orders are shifting to Cambodia and Bangladesh.


          In a bid to improve the situation, the country’s policies need to focus on developing agricultural production, which have already strongly contributed to the national economy, on a larger scale so that the agriculture sector can participate more deeply in the global value chain

The government also needs to concentrate on the development of the supporting industry to enable private enterprises to join in production chains of big corporations such as Samsung and Intel.


           “We must create more motivation for private enterprises to actively produce rather than gaining profit through the investment in property and resources exploitation," Doanh said.

Regarding tax issue, economic expert Bui Trinh said input VAT levied on FDI enterprises were deducted.


           “Meanwhile, many Vietnamese enterprises whose input VAT should have been deducted still has to pay for it. How are domestic industries, such as agriculture, supposed to grow and compete when they still have to pay for input VAT?” Trinh said.


          Trinh said the government’s policies assisting domestic enterprises should begin with concrete actions such as reducing taxes, reconsidering tax policy to guarantee fairness between FDI and domestic enterprises.


Source : http://english.vietnamnet.vn

           Keen on making Haryana a global hub of textile manufacturing and a preferred investment destination, the state government has crafted a new textile policy to incentivize setting up of new units and ensure growth and modernization of the existing textile industry in the state.


           The policy is packed with fiscal incentives and contains provisions for infrastructure augmentation, setting up of textile parks and facilities for skill training. It aims at generating 50,000 new jobs by attracting investment in the textile sector to the tune of Rs 5,000 crore.


           An official spokesman said the draft policy had been put in public domain and suggestions invited from stakeholders up to February 28, 2017, which would be factored in while giving it a final shape.


           The policy has been formulated with an eye on the cotton belt of Haryana. The state is one of the leading cotton producers in the country with Sirsa, Fatehabad, Bhiwani, Hisar and Jind being the main cotton producing districts. This sector provides employment to about one million people and readymade garments worth $ 2 billion are exported from the state annually.


           The policy proposes capital subsidy of 10% for the eligible new projects of all textile enterprises across the state. "The draft policy aims at positioning Haryana as a preferred destination for global textile majors. It aims to boost textile exports by compound annual growth rate (CAGR) of 20% during 2017," the spokesman said.


           Under the policy, the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) will offer industrial plots for a lease of 33 years with 5% increase in annual lease rent. Besides, panchayat land will also be made available on lease for industrial development. Textile enterprises acquiring technology will be provided financial assistance of up to 50% of the cost for adopting technology from recognized national institutes, subject to maximum of up to Rs 25 lakh. Also electricity duty exemption is proposed for new enterprises.


           Under the draft policy, the state government will facilitate setting up of textile parks exclusively for garmenting units with provision of labour housing and built-up sheds (to be provided on lease basis) to facilitate expansion of the garmenting industry in the state.


Source : http://www.cottonyarnmarket.net/

           Bombay Textile Research Association (BTRA) is organising the 57th Joint Technological Conference in Mumbai on February 17-18, 2017. This conference is held every year by each of the Indian textile research associations (TRA) in rotation. Dr Kavita Gupta, textile commissioner, has given her consent to be the chief guest at this years conference.


           Ahmedabad Textile Industrys Research Association (ATIRA), South India Textile Research Association (SITRA) and Northern India Textile Research Association (NITRA) will participate in the conference along with BTRA.


           The papers for presentation in this premier conference will be based on recent R&D trends and of immediate importance to the industries in all major textile areas from the four TRAs. The conference provides threadbare discussions on R&D carried out by the four TRAs and the possibility of adopting them in the industry.


           BTRA is planning to have a dedicated session on Geosynthetics and 12 papers will be presented on it. This particular session is jointly being organised with the office of the textile commissioner, ministry of textiles.


           Besides Geosynthetics, other topics like eco-friendly fabrics, emerging areas in the textile industry, product development, protective textiles and spinning among others will also be covered at the conference.


           German textile machinery manufacturing companies have shown interest in participating in this conference by way of presentation and networking with the participants.


Source : http://www.cottonyarnmarket.net/

          Taiwan’s exports grew from a year earlier in January on the back of solid global demand, in particular electronic devices, marking the fourth consecutive month that the country’s outbound sales increased on a year-on-year basis, the ministry of finance said Tuesday.


          It said that Taiwan’s exports for January rose 7% from a year earlier to $23.74 billion. Strong global demand from international vendors who rushed to raise their inventories ahead of the Lunar New Year holiday offset the impact from the reduced number of working days in the month, in which the six-day holiday started Jan. 27, CNA reported.


          In January, Taiwan’s imports rose 8.4% from a year earlier to $20.25 billion, marking the fifth consecutive month in which inbound sales posted a year-on-year increase. In the month, Taiwan reported a trade surplus of $3.5 billion, down $20 million from a year earlier.


          Apart from the textile sector, which registered a 7% year-on-year fall in exports in January, all of the major industrial sectors registered year-on-year growth in the month, the MOF said.


          Outbound sales of the electronic component sector for January rose 10% from a year earlier to $7.77 billion, a record January high, after semiconductor firms recorded $6.63 billion in exports, up 15.8% from a year earlier as the global semiconductor industry continued to enjoy booming business, the MOF said.


          The electronic component sector accounted for 32.7% of Taiwan’s total exports in January, making it the largest exporting sector in the country, the ministry added.


          Exports of the base metal industry for January rose 13.7% from a year earlier to $2.24 billion, outbound sales of mineral products jumped 25.1% year-on-year to $1.04 billion, and exports of machinery rose 7.9% from a year earlier to $1.86 billion.


Source : https://financialtribune.com