apparel views bangladesh/july - august 2017/1

68 Pages·2017·4.43 MB·English

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APPAREL VIEWS BANGLADESH/JULY - AUGUST 2017/
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/APPAREL VIEWS BANGLADESH/JULY - AUGUST 2017
C
ountry’s export earnings in July, the first month of the current
fiscal year 2017-18 witnessed a strong rebound overcoming
the 14.94 per cent negative growth in June, the last month of the
just concluded FY 2016-17, mainly due to good order situation in
FFrroomm the readymade garment sector. Country’s export earnings in the
first month of FY 2017-18 grew by 26.54 per cent to $3.20 bn from
$2.53 bn in the same month of the FY 17, according to the Export
Promotion Bureau data.
TThhee EEddiittoorr’’ss
The robust growth of 26 per cent in export earnings in the first
month of the financial year is positive for the country and the
DDeesskk...... growth took place due to increased shipment of readymade
garment products. There might be a positive trend of export
orders behind the excellent export earnings growth in the first
month of the FY 18. Though the export earnings achieved 26.54
per cent growth on a lower benchmark as the earrings growth in
the same month of the FY17 and FY16 were 3.49 per cent and
11.96 per cent negative respectively.
The EPB data shows that the earnings from RMG products export
in July of FY18 grew by 17.08 per cent to $2.48 bn from $2.11 bn in
the same period of FY17. After continuous negative growth it was
good news for the RMG sector that it achieved double-digit positive
growth in July. If the trend continues in coming months it will be
very positive for the country.
There were two main reasons for the growth – one, some of the
seasonal goods shipped at a time in the month of July and second,
orders increased as the capacity of Accord and Alliance approved
factories increased. The export earnings from the knitwear sector
in the month increased by 17.28 per cent to $1.26 bn compared with
that of $1.07 bn in the same period of FY17. The earnings from
woven sector grew by 16.88 per cent to $1.21 bn from $1.04 bn.
Further some good news for exporters as the National Board of
Revenue (NBR), the apex authority for tax administration in
Bangladesh, has recently announced reduction of income tax rate
for garment manufacturers and exporters from the existing 20
per cent to 12 per cent from the current financial year 2017-18.
The income tax rate cut is being provided for building pollution
free industrialisation in Bangladesh and low carbon economy.
Taxpayers of factories with international ‘Green Building
Certificate’ will get further benefit as they would have to pay 10
per cent income tax from this fiscal.
SHEIKH REZAUR RAHMAN
Editor & Publisher
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APPAREL VIEWS BANGLADESH/JULY - AUGUST 2017/
JULY - AUG 2017 / VOL.-V / ISSUE NO. 01
Editor & Publisher
Sheikh Rezaur Rahman
Correspondent 18
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Swati Sharma (India)
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Intertextile Shanghai
Editor & Publisher, Sheikh Rezaur Rahman, Printed
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Forthcoming trade events
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Indonesian upstream Ethiopian industrial parks attract foreign
textile industry urge for textile firms
tax exemption
Three industrial parks built by China in
Ethiopia’s Hawassa, Mekelle and
Kombolcha have started drawing foreign
export firms to the east African nation’s
textile and apparel sector. The country plans
to generate one-fourth of $400-mn foreign
exchange earnings target for the current fiscal
from its flagship industrial park in Hawassa
alone. The parks are part of Ethiopia’s efforts to become Africa’s manufacturing
powerhouse. The country plans to raise its current $150 mn revenue from textile
and apparel exports to more than $1 bn, according to a report.
The Hawassa park has started bringing in revenues and Hong Kong-based TAL
Apparel is among the foreign companies that have started production in its premises.
The Indonesian upstream textile industry has About $1.5 mn is being earned every month at the Hawassapark, according to a
recent report by the Ethiopian Textile Industry Development Institute. Seven foreign
urged the Fiscal Policy Office in Indonesia,
companies, including some from Bangladesh, have secured space to commence
Badan Kebijakan Fiskal, or BKF to exempt local
operations at the Mekelle industrial park.
raw materials supplied by local manufacturers
from VAT. Currently the Indonesian Government US textile and apparel firm Trybus has signed an agreement with the Ethiopian
only provides tax exemption for imported raw Investment Commission to start a factory inside the Kombolcha Industrial Park built
materials to those companies that obtained the by the China Civil Engineering Corporation. Ethiopia, with nearly 175 textile units,
so-called "Ease of Import Facility for Export aims to generate $30 bn in foreign exchange earnings from the textiles and clothing
Purposes" (in Indonesian: Fasilitas sector by 2030 and has allotted more than $1 bn for the construction of industrial
KemudahanImpor Tujuan Ekspor, or KITE) on parks in the second five-year growth and transformation plan (GTP-II) period, effective
the strict condition that these companies only from 2015 to 2020. It plans to have 150 companies in the sector by 2020.
use these relatively cheap imported raw
materials for output that is shipped abroad.
US want UN sanctions on North Korean oil,
However, domestic textile manufacturers
supplying raw materials to KITE facility owners
textile exports
are subject to a 10 per cent value added tax
(VAT), hence seeing weaker competitiveness. For
US ambassador to the United Nations Nikki Haley has said she wants the 15-
KITE facility owners this situation makes it
member UN Security Council (UNSC) to vote on September 11 on a draft
attractive to opt for imported raw materials
resolution to impose new sanctions on North Korea that includes an oil embargo
instead of buying from localq suppliers.
and a ban on the country’s textile exports and the hiring of North Korean labourers
Scrapping the 10 per cent VAT is expected to
abroad. The country recently tested a nuclear bomb.
boost demand for local raw materials.
The United States wants the UNSC to
According to the Indonesian Synthetic Fibre
impose the embargo and subject North
Producers Association (APSyFI) data show that
Korean President Kim Jong Un to an
the volume of garment exports in 2016 reached
asset freeze and travel ban, according
550,000 tonnes, while imports of cloth stood at
to a report. However, Russia insists
724,000 tonne in the same year. Meanwhile, it
the North Korean nuclear crisis is
is estimated that domestic consumption of local
impossible to solve with sanctions and
raw materials in the textile industry could replace
pressure alone.
100,000 tonne of imports, hence saving up to
$500 mn in foreign exchange, boost activity at Meanwhile, US Treasury Secretary Steven Mnuchin has said that if the UNSC did
local factories and generate more employment. not act, he has an executive order prepared to send to President Donald Trump
that would ‘authorize’ him to stop conducting trade and put sanctions on any
Redma Gita Wirawasta, Secretary General of the
entity that maintains trade ties with North Korea.
Indonesian Synthetic Fibre Producers
Association (APSyFI), said that the proposal has It is estimated that between 60,000 and 100,000 North Koreans works abroad.
been discussed during several recent meetings Textiles were North Korea’s second-biggest export after coal and other minerals in
with the BKF. The APSyFI would be highly 2016, worth around $752 mn, according to the Korea Trade-Investment Promotion
supportive of this move and it would in fact Agency (KOTRA). Nearly 80 per cent of the textile exports went to China. The draft
encourage the development of an import- resolution reportedly will allow states to intercept and inspect on the high seas
substitution industry. vessels blacklisted by the UNSC. Around two dozen vessels are listed at present.
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Pakistan textile industries need to focus on value addition
Pakistan textile industry has been yarn exports fetch $1.26 bn, but after value-
advised to focus on value addition to addition this amount can go up to $7.5 bn a
compete in the international market as lack year. Pakistan Central Cotton Committee has
of value addition is one of the major been handed over to private sector, but
reasons behind the decline in exports, said there has been no improvement in cotton
Commerce Secretary Younis Dagha recently production since then.
while addressing an event hosted by
Jawed Bilwani, Chairman of Pakistan
Pakistan Hosiery Manufacturers and
Apparel Forum said that Pakistan’s textile
Exporters Association.
exports are lower than India, Bangladesh
According to Dagha, cost of doing business and Vietnam, while costs of production as
Dagha further added that work on
is higher in Pakistan compared to well as minimum wages are comparatively
combined effluent treatment plant will
neighbouring countries, but it is not the only higher in the country. They receive export
soon start with the project cost to be borne
hurdle in exports as they have not played orders when other suppliers are not
half each by provincial and federal
their role in value addition… industrial available in the international market. They
governments. Provincial government has
production remains lower. Commerce get only spillover orders. Exports would
already sanctioned the budget, while the
Secretary said that Indian and Bangladeshi increase when a level-playing field is
issue is pending with the planning
exporters invest in their industries, while in provided to the industries. The country is
commission at the federal level, which will
Pakistan foreign revenue earned from textile facing a widening trade deficit of more than
soon be resolved.
exports went back to stocks and real estate $32 bn and it would not prosper if exports
sector. Investors should not divert textile Zubair Motiwala, Ex-President of Karachi are not increased.
money to real estate and other sectors. Chamber of Commerce and Industry said
India inks agreement to expand trade with Chile Iran's garment industry
worth $15 bn
India has signed an agreement with Chile to expand the India- Chile Preferential Trade
Agreement (PTA), marking a 10-fold jump in the number of products to be traded on
concessional duty rates. "India's export basket with Chile is diversified and keeping in
view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely
benefit India," said the Commerce Department. The Union Cabinet had approved the
expansion of the PTA in April under which 86 per cent of India's exports to Chile will get
concessions. Under the expanded PTA, Chile has offered concessions to India on 1,798
tariff lines with duty cuts that are 30-100 per cent lower than the existing customs duty
for various products. Similarly, India has offered concessions to Chile on 1,031 tariff lines
with duties 10 per cent-100 per cent lower than the present import duties. A PTA between
India and Chile was signed in March 2006 and came into effect from August 2007.
Myanmar textile industry training in chemical management Iran’s fashion and garment industry is
worth 500 trrials (over $15 bn) though
The European Union-funded SMART data from the government’s statistics centre
Myanmar project has launched a six- shows that to be 350 trrials, the Country’s
month advanced chemical-management Secretary of fashion and clothing regulation
training programme for garment and textile workgroup Hamid Qobadi Dana recently
factories. The training follows a curriculum told the fashion-focused second edition of
developed by the Promotion of Social and the Startup Weekend conference in Tehran.
Environmental Standards in the Industry Dana also highlighted the need to have a
(PSES) project. PSES is a joint project of the national standard system of garment sizes.
Governments of Bangladesh and Germany, The conference, held in mid-August on the
implemented by Deutsche Gesellschaftfür development of new talent in the fashion
Internationale Zusammenarbeit (GIZ) GmbH, which works on behalf of the German and retail industry, centredaround
Federal Ministry for Economic Co-operation and Development. ‘Entrepreneurship in Fashion and
Technology,’ according to a report.
“GIZ has been immensely cooperative and practical,” said Jacob Clere, SMART Myanmar
Team Leader. “They have provided us with expertise and knowledge resources which A new apparel industrial town may be set-
PSES developed over more than 10 years. With this programme, we aim to help Myanmar up in Fashafouyeh in Tehran Province’s Rey
dodge the environmental destruction which so many of the world’s other garment and County to limit imports, boost domestic
textile industries have faced.” SMART Myanmar is the largest not-for-profit technical- production and to make the price of Iranian
training initiative in Myanmar’s industrial sector. It has trained hundreds of managers garments more competitive. AT present,
and dozens of garment factories on various social and environmental topics. The 9,818 industrial units are active in Iran’s
Chemical Management and Detox programme is the newest addition to the project’s textile and apparel sector, comprising 11 per
several on-site consultancy and training modules. cent of all industrial entities.
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PRGMEA urges revision Clothes out of beer raising $5 mn
of textile policy
A Perth-based textiles company has announced plans to list on the Australian stock
market, which is not necessarily newsworthy in itself, except for the fact that it makes
clothes derived from beer. According to a report, Nanollose is planning to raise $5 mn
from a public listing to assist in commercial development.
Data released by the ABS earlier this year shows Aussies
still enjoy beer for its more common usage as a refreshing
beverage, but advances in technology mean it can now be
used for clothes as well. Nanollose uses its technology to
extract cellulose, which is one of the main ingredients in
textile production.
While cellulose is usually derived from cotton and linen,
Nanollose instead converts biomass from the waste
generated by the production of beer, wine and liquid foods.
The company emerged two years ago when it debuted a
Pakistan Readymade Garments Manuf- dress made of material leftover from beer fermentation at a
acturers and Exporters Association fashion expo in Milan.
(PRGMEA) Central Chairman Ijaz Khokhar
That followed an experiment with a dress made from
said the formulation of sector wise policies
fermented wine extract, which may have raised concerns
is the only remedial solution to avoid decline
about the drinking habits of the wearer — it still smelt like
and stabilise textile exports.
wine. Nanollose lodged its prospectus with ASIC on August
Talking to APP recently, PRGMEA Chairman 21, and is inviting investors to subscribe for 25,000,000
said, “We are pressing the government to shares at 20 cents. The company is aiming to raise $5 mn
review its textile policy to enable the textile from a fully-subscribed float, managed by Mac Equity.
sector to attain the targets,” adding that
The prospectus states that the offer will run until 11 October, with the issue of shares
government should take steps for the
scheduled for 18 October. No shares will be issued unless a minimum rising of $5 mn
removal of hurdles hindering exports of
has been achieved. As part of the share issue, investors will be required to make a
textile sector. “We understand that
minimum investment of $2,000 (10,000 shares), with additional investments to be
formulation of sector wise policies is the
made in $200 increments.
only remedial solution to avoid decline
and to stabilise the exports,” he reiterated.
Ijaz said that due to non-availability of Brother DTG launches new single-pass GTX printer
latest fabric, locally the garment sector
currently has a limited product line for Brother DTG has launched the GTX – its next generation of digital direct-to-garment
the export market, adding that foreign
printers which promises faster, one-pass printing capabilities and a larger
buyers were demanding new garments
maximum print area. The new industrial print heads, which have been developed by
on G3, G4 and technical fabric raw
Brother, contain 1680 nozzles per print head, allowing for prints at 1200 x 1200 dpi
material which is not available nor
in a single pass. This result in mass-production level speeds and makes the GTX
produced by Pakistani weavers.
printer 2 to 3 times faster than the previous flagship model, the GT-381. The GTX’s
He said more than 30 per cent cash flow maximum print area measures 40.64 x 53.34cm (16 x 21?) – the largest on any Brother
was blocked since long in the shape of sales DTG machine – and the new printer has a large print head-to-substrate gap, which
tax refund and custom rebates which was allows printing on substrates up to 30 mm thick. This makes it easier than ever to
adversely damaging cash liquidity. “Our print over seams, pockets, zippers etc, according to Brother.
value added products are unable to fetch
The new white ink circulation
high value due to poor packaging and
system, which keeps the white ink
under the circumstances, there is need of
in suspension, promises less
setting up a product and packaging centre
maintenance and downtime due to
for ensuring better packaging,” he added.
nozzles clogging and the wet
He said that at present there are 125 capping station is designed to
exporters of martial art apparel in Sialkot eliminate ink drying on the bottom
and the city was earning up to $400 mn. of the nozzle plate. The new GTX is
He added that efforts were underway for supplied with new Graphix Lab
bringing a big boost in the exports up to proprietary printing software, and
$1 bnby 2020.However, the PRGMEA both Graphix Lab and the GTX print
Chairman said that Research and driver are available for Mac and PC operating systems. The print driver can be set to
Development (R&D) was weak due to the pause for a specified length of time between the laydown of the white underbase and
high cost of utility and allied factors and colours. This allows for the printing of traditionally difficult fabrics that absorb more ink.
under the circumstances, the government
Coinciding with the launch of the new printer, Brother also has released the new Innobella
should announce special R&D support
Textile water-based pigment DTG inks. These offer a larger colour gamut, high washability
fund for innovation of new product and
(approved by the AATCC) and are Okeo-Tex Eco-Passport certified and CPSIA compliant.
up gradation of workplaces.
The GTX comes with a one-year warranty including print heads.
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Former Gap boss developing sustainable plant-free fibre
Australian technology company Nano- Germano says the company will first target
llose, headed up by former Gap Inc the $500bn global textile industry, given the
clothing boss Alfie Germano, is producing increasing urgency from brands, retailers and
what it claims is the world's first plant-free manufacturers to seek and cultivate alternative
fibre, offering a sustainable alternative to sustainable fibre resources. "Progressive
commonly used fibres such as cotton for the brands and companies are starting to facilitate
textile industry. The company is developing this new shift by involving themselves deeper
a technology that uses biomass from waste in the supply chain and searching for feasible,
products such as beer, wine and liquid food, sustainable long-term alternatives."
to extract cellulose fibres – one of the main
This urgency for cleaner alternatives recently
ingredients in fashion and textile production. As the building block raw material for items
saw Swedish retailer Hennes & Mauritz (H&M)
The process, Nanollose says, requires very such as paper, clothing and hygiene products,
release a sustainability report in April,
little land, water or energy. A production cycle cellulose is obtained from plant sources like
highlighting its commitment to use 100 per
is just 18 days, compared to the eight months cotton, wood and bamboo, with the supply
cent sustainably sourced materials by 2030.
seen in the cotton industry. chains and procurement ecosystems of these
As part of that plan, the retailer's Indonesian
industries raising ever-growing environmental
CEO Germano says the development arm has partnered with Danone, bottled water
concerns."The current procurement of fibres
marks an exciting time for the company, brand Aqua, and one of its most sustainable
to make textiles and clothing is highly resource
which was founded in 2014 by scientist suppliers, to turn plastic waste into clothes.
intensive," say Germano said. "I applaud the
Gary Cass. "Today, we use plants and trees
cotton industry's efforts and improvements, Zara has also joined the movement with the
for fibres to make clothes and textiles, with
however the challenges around cotton still launch of its sustainable line 'Join Life' last
manufacturers having limited alternative
remain as it requires large amounts of water, year. "We want to be part of this solution, and
eco-friendly options available to them. We
vast acres of land and uses a significant amount our vision is to create an end-to-end supply
don't have to cut down trees and plants
of insecticide."We are the only company we chain with key partners who will grow our
to create our plant-free cellulose fibre, and
know of looking to produce plant-free fibres," says Germano. "The goal is to then
it can be used in the same way as other
cellulose fibres, and I truly believe that feed our sustainable alternative into the global
fibres to make clothing and textiles but
Nanollose success will be a success for the industries with little to no retrofitting to existing
with a dramatically reduced environmental
global textile industry." machinery or processes."
footprint.”
Armenia keen to cooperate with Kornit Digital’s Vulcan printer bags top
Vietnamese textile firms SGIA award
Armenia has expressed its desire to cooperate with major Kornit Digital has received SGIA’s prestigious 2017 Product of the
Vietnamese textile firms to revive the local garment industry Year Award for the Kornit Vulcan, in the category “Direct-to-garment
and boost exports. This was conveyed to a delegation from printers (Colour Shirt – Not White)”. The Vulcan will be on display at the
the Vietnam National Textile and Garment Group (Vinatex) 2017 SGIA Expo in New Orleans, in Kornit’s booth # 1617.
that visited Armenia in August to seek partners and explore
Kornit’s Vulcan, the most
avenues to develop production projects in Vietnam.
advanced direct-to-garment
Armenia also promised to create printing solution of its kind,
favourable conditions for foreign allows garment decorators to
investors and provide special produce small to medium
mechanisms for Vietnamese print runs in a profitable way.
investors through cooperation This heavy-duty production
policies, cooperation agreements, system is targeted to screen
and granting of work visas, quoting printers producing collections
Vinatex General Director Le Tien and short runs for retailers and promotional purposes. The Vulcan
Truong. offers the lowest cost per print for run lengths between 50 and 500
garments. Unlike Kornit’s traditional direct-to-garment printing systems,
Truong said Vinatex will consider production and business
the Vulcan sports a conveyor system for the printed pallets with pre-
cooperation with big Armenian companies that already
treatment, white and CMYKRG printing taking place in parallel. The
have distribution networks in Russia and the European
Vulcan’s unique sequential architecture allows it to print up to 250
Union. Vietnam is the first country to sign a free trade
garments per hour, both on dark and light garments.
agreement with the Eurasian Economic Union (EAEU),
which includes Armenia. More than 70 companies competed in the 2017 Product of the Year
Awards, submitting 222 entries over the competition’s 49 categories —
Vinatex representatives met Armenian Deputy Foreign
the largest field of competitors in the awards programme’s history. Ray
Minister, the Minister of economic development and
Weiss, SGIA’s Digital Imaging Specialist, coordinated the yearly awards
investment, and some major businesses in the country’s capital
programme and said competition was tight. “The judges struggled to
Yerevan. Armenia has 94 businesses in the textile and
choose winners in the output device categories, because the print quality
garments sector and some of its companies have experience
was so good and so close from entry to entry. That’s great news for the
working with big fashion brands of Italy and Germany.
printing industry,” said Weiss. “Kornit’s award was well-earned!”
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