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| Issue date:01/02/2010 |
| ATA Journal for Asia on Textile & Apparel - Feb 2010 Issue |
| Source:Journal for Asia on Textile & Apparel |
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East Asia
China
GDP increases 8.7% in 2009
China's gross domestic product (GDP) in 2009 stood at RMB33535.3 billion, up 8.7% from the previous year, in accordance to preliminary data announced by the National Bureau of Statistics (NBS) of China on January 21.
Sizable textile and apparel enterprises (with an annual operating revenue of at least RMB5 million) in the country registered a growth of 8.5% in added production value for the year of 2009. That growth rate was 10.2% in 2008.
In 2009, China's retail sales of apparel, shoes, hats and knitted textile consumer goods reached RMB462.2 billion, up 18.8% from 2008, the NBS data showed. The retail price in this category fell 2%.
Economists believed that the GDP growths were attributed by the massive stimulus package introduced by the Chinese government. Domestic consumption in China was encouraged during the year, offering momentum to the Chinese textile and apparel industry.
In 2010, a moderate growth of the Chinese textile and apparel industry is expected. Investment of the industry may come from enterprises focusing on the domestic textile and apparel market. Exports might be shadowed by possible risks, such as renminbi appreciation and rising material costs.
Cotton yarn exports dropped last year
China's aggregate cotton yarn import and export reached 920.4 kT in the same period, up 25.87% from the previous year. Of which, the country's total cotton yarn export reached 488 kT (kilotons) from January to November 2009, down 5.7% compared to the same period of the previous year. The total export was valued US$1.659 billion, down 11.4%. The export price decreased 6.08% in the period under review.
Meanwhile, the total import increased 20.82% to US$2.096 billion in the same period under review, although the import price dropped 3.8%.
In the area of cotton textiles, such exports from China in general decreased during the first 11 months of 2009, except the export of combed cotton yarns and cotton yarns that increased 7.25% and 1.31% in volume respectively. Falling export volumes were recorded in the fields of cotton sewing threads (-4.13%), cotton yarns/threads (-5.07%), blended yarns/threads (-10.82%) and carded yarns (-11.23%).
Outputs of chemical fibers and textiles rise in first 11 months
The total output of chemical fibers in China reached 25,007.9 kT (kilotons) from January to November 2009, up 14.9% from the same period of the previous year, according to the latest figures of China's National Bureau of Statistics (NBS).
The output of chemical-fiber-made gray goods was 51.336 billion meters, up 4.4% from previous year, whilst about 21,690.2 kT of chemical-fiber-made yarns were produced in the first 11 months of 2009, up 11.8% year-on-year.
Southeast Asia
Indonesia
Textile industry expects 13% growth in 2010
After going through a hard year in 2009, Indonesia expects to have a 13% growth on textile and apparel exports in 2010, according to the Indonesian Textile Association (API).
Chairman of the Indonesian Textile Association (API), Benny Soetrisno, in an annual press conference at the end of December 2009 in Jakarta.
"2009 is a rainy day for Indonesian textile industry. Slowing demand in developed countries caused a drop in the global demand of textile and clothing goods. As a result, Indonesia's export of textile and clothing products decreased this year (2009). Up to October 2009, textile and apparel exports from Indonesia reached US$7.8 billion, sliding 11.26% compared to the same period of 2008. The API projected the figure will be around US$9.4 billion for the full year of 2009, or 6.37% short of the target at US$10.04 billion," said Mr Soetrisno.
Mr Soetrisno expected the situation in 2010 to improve, considering the economic recovery of developed countries will likely be observed by mid-2010.
Assuming the global demand will resume to normal, the API expected the Indonesian textile and apparel exports to reach US$10.66 billion in 2010. However, this estimation is subject to the pace of the global economic recovery.
Indonesia to re-negotiate FTA with China
In early January, Indonesia notified the ASEAN council of its plan to modify the implementation of the ASEAN-China Free Trade Agreement (FTA) by re-negotiating 228 tariff categories in eight industrial sectors, including textiles and footwear.
A government official said that the Indonesian authorities would like to re-negotiate with the ASEAN and China regarding the agreement because it has a potential to weaken local industries, according to local media reports. The Indonesian authorities targeted a delay of the implementation of tariff cuts to give local industries a chance to become more competitive to withstand the possible inflow of Chinese imports.
In return, it is offering to accelerate the implementation of tariff cuts on 153 tariff categories.
The ASEAN-China FTA took effect on January 1 this year.
Producers expected to turn to be traders
Following the implementation of China-ASEAN Free Trade Agreement (FTA) this January, textile and apparel producers, especially small and mid-size enterprises from Bandung West Java, had concerns over the possible inflow of Chinese textile and apparel goods under the FTA.
Chairman of the API Jabar, or the Indonesian Textile Association in West Java, Ade Sudradjat said that some traders started to cut their orders from locally made products and wait for imports from China four months before the FTA became effective. Local manufacturers were thus forced to cut production.
Chairman of the API, or the Indonesian Textile Association, Benny Soetrisno said that some textile and apparel manufacturing SMEs in face of the market pressure may switch to be traders as they worry that their own making cannot compete with imports, particularly those from China. "It is likely that some SMEs will buy cheaper import products to sell them at home," he said.
The collapse of local textile and apparel makers had already started since 2008, due to intense competition from imports, he continued. With reference to the API data, 155 local companies in 2008 and additional 271 in 2009 in the industry closed down, mostly from the sectors of spinning and apparel making, for instance.
The Philippines
Natural fibers developed by Filipino researchers
The Philippine Textile Research Institute (PTRI) held the country's first national conference on natural fibers last December, showcasing the most recent studies and developments done in the country's indigenous fibers.
PTRI director, Dr Carlos Tamboc, said the conference brought together all the players and stakeholders in natural-fiber research and development. For instance, Abaca fibers are used in making textile and composite materials, and even in printing monetary notes.
Researchers at PTRI also found hyacinth fibers as potential raw material for the manufacture of clothing and home fabrics.
According to their study, processing the fibers with polyester staples initially produced blended yarns with 20-35% water hyacinth component. The stalks went through a series of chemical and mechanical treatment to achieve the crimp property of wool for better processing, reduce the plant's glue-like content, and soften the fibers to make them fine and fit for knitting and weaving.
Additionally, researchers from the University of the Philippines are working to use natural fibers for the fabrication of composite materials, particularly as a possible replacement for fiberglass fillers for plastic matrices widely used in automobile and construction industries.
Vietnam
Textile and garment export up 1% in 2009
The Vietnam Textile and Apparel Association (Vitas) reported that textile and apparel exports turnover of the country reached over US$9.1 billion in 2009, up about 1% over the previous year.
Though the growth was slight, the Vitas saw it a positive signal showing Vietnam's textile and apparel industry was able to survive through the global economic recession last year.
During the year, the US, the EU and Japan remained the three major markets of made-in-Vietnam products of textiles and apparel. At nearly US$5 billion, exports to the US accounted for about a half of the total turnover in 2009, down 5% in value but 18% up in volume compared to 2008.
Exports turnover to some other major markets also enjoyed fruitful results, the Vitas said, including Korea (+45%), the United Arab Emirates (UAE) (+23%), Switzerland (+12%) and the Southeast Asian region (+7.8%).
Importing materials for the textile and apparel production in 2009 witnessed a strong decline compared to 2008. Import turnover of fabrics reduced 6.4% in 2009 from the previous year to US$4.17 billion, while raw material imports also slid 20% to US$1.08 billion.
The Vitas estimated Vietnam's textile and apparel industry to reach an export turnover of approximately US$10.5 billion in 2010.
Training for Tanzanian textile workers
The A to Z Textile Mills sent about 90 of its workers to Vietnam in a program on improving techniques of producing the mosquito net. Based in Arusha city in northern Tanzania, the A to Z Textile Mills is a long-lasting insecticidal net manufacturer in central East Africa.
A large amount of Vietnamese mosquito nets are exported to the African countries in these years, gaining reputation among African consumers. Therefore, the A To Z Textile Mill decided to learn from Vietnam. The Afrian producer's current production capacity is 65,000 nets/day, and 90% of the products are sold to the neighbouring countries in the region.
Police raids counterfeiter in Hanoi
Hanoi's local intellectual property police announced that they caught the owner of Huong Shop in central Hanoi, where 60 allegedly fake jean trousers of Louis Vuitton brands were available for sale in addition to hundreds of apparel goods labelled with other international fashion brands.
Located at Old Quarter, the busiest area of Hanoi, the store was selling allegedly fake Louis Vuitton jean trousers at a price of VND240,000 per piece (equivalent to US$12.5) while the genuine product sold by the brand in Vietnam is about ten-fold more expensive.
The action was supported by the Louis Vuitton distributor in Vietnam who cooperated with the local government to fight against fraudulent goods, officials of Hanoi's Intellectual Property Police said.
Puma builds product development center
Puma AG opened a new product development center in Ho Chi Minh city late last year in a bid to help its local suppliers improve the creation of new apparel products as well as reduce costs.
The center is the new home for footwear and apparel prototype and sample suppliers covering 85% of Puma's footwear and 15% of Puma's apparel development needs, the company explains. Over 40 Puma suppliers are put under one roof and work tightly together, said Jochen Zeitz, Chairman and CEO of Puma.
Further integrated in the new center are material and component suppliers as well as sourcing, engineering, material management, laboratory and research & development centers of Puma's sourcing organisation. Prior to this, these facilities had been spread all over Asia.
The new center was built in line with the company's sustainability concept, featuring a water reservoir on rooftop to collect rain water for cooling purposes in the hot season and for gardening. A louver was installed to protect the office and factory building from direct sunlight, which reduces the heating up of the building. Solar panels provide energy for warm water consumption and air-conditioning.
Concerns over wages in Ho Chi Minh City
Demands of apparel factory workers for higher wages in Ho Chi Minh City aroused concerns from some overseas investors late last year.
An American Chamber of Commerce in Vietnam (AmCham) representative, Herb Cochran, in a meeting with a delegation of international importers in late 2009, commented that Vietnam was not as attractive as before with rising wages, considering that the productivity of the country's textile and apparel workers is about 70%-80% of that of Chinese laborers. Indonesia could be a substitution.
A senior official at the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting was quoted by local media reports, saying that higher labor costs are found in big cities like Ho Chi Minh City. Labor cost remains attractive in other provinces in Vietnam.
More than 500 workers at a garment plant of Hamlin Vietnam Company located in Ho Chi Minh City went on a strike last December for higher wages. The workers did not agree with the company's change of calculating the salary from time-based to volume-of-products-based. In addition, the quality of meals for workers was considered bad.
Hamlin Vietnam is a wholly foreign invested factory by a Filipino firm, producing knits such as men's polo, blouses, men's boxers and woven bottoms for men and women. The products are made for international brands including Phillips Van-Huesen and Calvin Klein shipping to markets like the US, Europe, Japan, Mexico, Canada, Australia and Hong Kong.
Spinning sector being developed
In order to nurture the underdeveloped sector of spinning, the Vietnam National Textile and Garment Group (Vinatex) is building a new yarn-making plant. The ground-breaking ceremony of the Hong Linh Spinning Plant in Hong Linh town, Ha Tinh province was held in December 2009.
Invested with VND450 billion (or about US$24 million), the plant is a joint venture of Vinatex and some leading textile and apparel enterprises in the region, including Hanosimex, Phu Bai Spinning Mill Company, Ha Dong Textile Company, Hoang Thi Loan Textile and Garment Company and Ha Tinh Trade Corporation.
The plant is designed with 50,000 spinning reels to achieve an annual capacity of 6,000 tons. Expected to commence in the fourth quarter of 2010, it will recruit about 510 local workers.
Industry experts commented that the Vietnamese textile and apparel industry has been developed for years, but its spinning section is still underdeveloped and local enterprises have to import fibres and yarns for production. Therefore, the Hong Linh Spinning Plant will make a great contribution to the development of the spinning sector as well as the country's textile and
apparel industry as a whole.
New apparel factory helps reduce poverty in poor district
The Vietnam National Textile and Garment Group (Vinatex) also continued its expansion in apparel making sector with a new investment in a plant at VND42 billion (or US$ 2.3 million) producing garment for both domestic and export markets.
Located in the Son Dong district of Bac Giang province, the plant was planned to reach an annual capacity of 3.5 million pieces of apparel products, and the revenue per annum will be about VND 52 billion (or US$2.9 million).
Deputy Minister of Industry and Trade of Vietnam, Bui Xuan Khu, said that building a garment plant in this location is not only for commercial purposes. It also helps reduce poverty and eliminate hunger as Son Dong is a poor district where 47% of its total population is ethnic minority. When it operates in April 2010, the plant will need about 1,000 local labors.
South Asia
US cotton association to tour South Asia
The International Cotton Association Ltd (ICA) met with mill owners from Bangladesh and Pakistan in mid-January 2010.
The US organization's President and Managing Director first visited Bangladesh during mid-January to host a workshop and meet with leading cotton officials to hear the views of mill owners about ICA Rules and to encourage companies to join the Association. From Bangladesh they traveled to India to meet with Indian cotton officials before finally stopping off in Dubai, where they met representatives from the Karachi Cotton Association.
India
New changes seen in local luxury market
International luxury apparel retailers are trying to enter the market of India with affordable luxury apparel products targeting value-conscious consumers.
Indian retail chain major, Shoppers Stop, is set to launch Playboy brand of unisex wear, and a textile conglomerate, S Kumars group, has decided to bring in three international brands by the end of this fiscal year (i.e. the first quarter of 2010).
Some luxury international apparel brands witnessed sluggish demand in the country last year. The distribution of Jimmy Choo and Bottega Veneta changed hands from the Murjanis Group to other local distributors.
Some overseas apparel brands now try to work with Indian retailers, who have a good understanding of the local market. A variety of business models are possible, including franchise, according to Rahul Mehta, president of the Clothing Manufacturers Association in India.
Shoppers Stop, which had launched foreign brands like Mothercare and Austin Reed, planned to add about half a dozen foreign labels to its product offerings in India. A recent addition was a German jeans brand called Mustang.
S Kumar Group's Brandhouse Retail, already tying up with an Italian brand Oviesse, is also trying to expand in India's luxury apparel market. Managing director of S Kumars Nationwide (SKNL), Nitin Kasliwal said, "We are in an advanced stage of talks with international apparel brands keen to tap the Indian market soon. Some of these brands are top-end luxury brands."
According to industry analysts, the market for luxury and premium brands in India is estimated at about Rs 6,000 crore- Rs 7,000 crore, growing at about 25-30% a year.
Luring foreign investment
As part of Indian government's strategy to attract foreign direct investment (FDI) in the textile sector, an Indian trade delegation led by the Textile Minister, Dayanidhi Maran, initiated trade talks with manufacturers and business groups in Switzerland, Italy and Turkey.
The Indian textile sector attracted US$200 million in 2008, representing a meager fraction of 0.6% in the country’s overall FDI of US$33 billion in the year.
The Indian authorities targeted a total of foreign direct investment at US$6 billion for the domestic textile industry by 2015 so as to tap foreign capital towards establishing eco-friendlier production units in such fields as textile machinery, fabric and garment manufacturing and technical textiles.
The delegation organised road-shows in Zurich (Switzerland), before visiting Milan (Italy) and Istanbul (Turkey). The Indian contingent also visited Frankfurt (Germany) and Paris (France), with an aim to attract investments in technical textiles.
Companies being visited included machinery builders and textile manufacturers, including Benninger, Rieter, Jacob Müller and Weisbrod-Zuerrer in Switzerland; Miroglio, Vincenzo Zucchi and Zegna in Italy; and Bilsar in Turkey.
Mr Maran said that the authorities expected to attract 20% of the US$6 billion FDI target in the first year (FY 2009-10).
Synthetic fiber exports rise
India's exports of man-made fiber (MMF) textile exports are on a recovery path with fresh demand seen from Europe and West Asia, according to the country's Synthetic & Rayon Textile Export Promotion Council.
The worst is over and the Indian MMF textile exports could register a positive growth for this calendar year (2010), said Mr Ganesh Kumar Gupta, Chairman of the Council.
Between April and September 2009, MMF exports increased by 10% in US dollar and 26% in Indian rupee terms compared to the corresponding period of the previous year.
"The recovery in exports was mostly seen from the Middle East region, especially the United Arab Emirate and Europe. The US market, however, continues to remain comparatively weak," said Mr Gupta.
Jute geotextiles appear promising
The Indian authorities planned to promote the use of jute geotextiles (JGT).
A five-year, US$3.6-million project to identify potentially important JGT for use in control of soil erosion and rural road construction and standardisation of design, methodology and specifications for use of jute geotextiles was formally launched by the Union Textiles Minister, Dayanidhi Maran, in late 2009.
Under the project, 26 field trials would be conducted – 16 in India and 10 in Bangladesh – to certify and standardise the effectiveness of JGT.
While the Indian government would invest US$1.25 million to implement the project activities in India, the Bangladeshi government would contribute US$0.57 million.
The Common Fund for Commodities, based in Amsterdam of the Netherlands, an intergovernmental body within the framework of the UN, will also finance the project with the Dhaka-based International Jute Study Group (Bangladesh) being the supervisory body. The Jute Manufacturers Development Council (JMDC) in Kolkata (India) serves as the executive arm for the project.
Mr Maran said that jute geotextiles command a business potential of Rs 1,260 crore in the 21,000-km national highway being upgraded by the Indian government.
The Bharat Nirman, a business plan for rural infrastructure, envisages laying of 24,000 kilometers of roads for connectivity to rural areas. This could present a further market potential of Rs 868 crore for the jute geotextile industry.
Pakistan
More raw cotton exported in 2009
Raw cotton exports of Pakistan registered an increase of 107% in first five months of the current fiscal year (i.e. July-November 2009), mainly due to a rising demand in the international market.
Major cotton producers, including China, are estimated to face short cotton crop this year. Therefore, the demand for cotton in the world market is higher than previous years. Pakistan is expected to yield over 12.5 million bales of cotton crop during 2009-10 as compared to 11.2 million bales in 2008-09, industry players in Pakistan said.
The expected crop yield will not be sufficient to meet the country's overall demand, which presently stands between 15.5-16 million bales. Meanwhile, exports of the Pakistani raw cotton are on surge as the commodity is now freely imported and exported under the WTO agreement.
Pakistani export of raw cotton has been rapidly and constantly rising since July 2009. The country exported raw cotton at a value of US$108.497 million in July-November of current fiscal year 2009-10 against US$52.308 million during corresponding period of 2008-09, depicting an increase of 107.42% or US$56.189 million in value, as per the government's official statistics.
A local exporter explained that Pakistan's exporters and traders are offering better quality cotton at a reasonable price of 73-75 US cents per pound, as compared to about 80 US cents per pound by Indian traders, for instance. As a result, they are getting massive export orders. This exporter also expects a record export of raw cotton in 2010.
Reaction against MOU with US firm
Farmers of Pakistan (FOP), Pakistan Kisan Board (PKB), Pakistan Kisan Committee, Anjuman Kashtkaran and ActionAid did not welcome the proposed memorandum of understanding (MoU) with an US biotechnology company for introducing insect-resistant Bacillus thuringiensis (Bt) cotton and other advanced seed technologies in Pakistan.
Cotton is an important cash crop of Pakistan, which comprises two thirds of country's agricultural exports, the Pakistani associations said. Local farmers showed concerns over genetically modified cotton.
An official of the Ministry of Food and Agriculture explained that the authorities planned to sign this MoU as Bt is a live micro-organism that kills unwanted insects from forests and agriculture crops. Provided in cottonseed, it boosts the yield and protects the crop from most of the pests. Currently, farmers are using Bt cottonseed on around 2.7 million acres of land against cultivation out of the total eight million acres in the country.
Though Pakistan is the world's fourth-largest cotton producer, third largest raw cotton exporter and a leading yarn exporter, its yield per acre is at 13th position in the world.
Pakistan's cotton requirement is about 16 million bales, and it produces around 12 million bales. The gap is bridged through imports.
Establishing a garment city in Hyderabad
The authorities of Sindh province in Pakistan approved in principle the establishment of a garment city in Hyderabad and allowed allocation of Rs 100 million for feasibility preparation. The project on 500 acres of land will cost Rs 225 million and its completion will take two years.
Minister for Industries and Commerce of Sindh, Rauf Siddidi, said the garment city in Hyderabad would be the biggest in Pakistan, whereas Faisalabad garment city company, which is incorporated by the Securities and Exchange Commission of Pakistan (SECP) has a land area of 40 acres.
He added that the project will include facilities and necessary infrastructure to the textile and leather garment sector to enhance the export of value added garment, made-ups, accessories and leather garments to the international markets.
Foreign investors and entrepreneurs are welcomed and the project is expected to generate sizeable employment opportunities, especially for women.
The authorities pointed out that garment cities are successfully operated in China, Singapore, Vietnam and Bangladesh and India has set up large industrial parks for the same purpose. The Pakistani government thus planned to establish three garment cities in Lahore, Karachi and Faisalabad respectively for the sustained development of the textile and apparel industry.
Bangladesh
Stimulus package to exporters
The government of Bangladesh, in late 2009, announced the second stimulus package worth Tk10 billion for helping the export-oriented enterprises, including those in the sectors of textile and ready-made garment in face of the global economic downturn.
"The government will require at least Tk 10 billion for financing the second stimulus package, which include direct export subsidy, fiscal and other policy support, for the export-oriented sectors," said Finance Minister AMA Muhith.
The government has also announced a conditional incentive support for the country's readymade garment sector, under which a 5% cash subsidy will be available in the first year against exports to the markets other than the EU, the US and Canada. The rate of such subsidy will decrease to 4% for the second year and 3% in the third year, the finance minister said.
The Bangladesh Textile Mills Association (BTMA) would get additional cash support for direct export of yarn to any overseas market, he added.
Moreover, the rate of interest for the textile sector would be cut to 10% from the existing 13%. Expiry for rescheduling loans for the sector would be extended until June 2010 from November 1, 2009.
The government also offered more support to small and medium-sized textile mills (SMEs) with an extra 5% incentive on their additional exports of the fiscal year (FY) 2009-10 to that of the previous fiscal. Textile and apparel exports of SMEs reached US$ 3.5 million in FY 2008-09.
Besides, the SMEs in the textile and apparel sector, without captive or diesel-run electricity generators, would receive a 10% subsidy on their electricity bills until June 2010, the stimulus package revealed. It, however, said such support is applicable for those who have not enjoyed any loan rescheduling facility. More favorable measures are given in the stimulus package.
Jute export banned
Bangladesh banned the export of all grades of raw jute in December 2009 following a supply scarcity of the fibre faced by the domestic jute mills.
"The government has decided to keep export of all kinds of raw jute suspended with an immediate effect in order to ensure its supply in the internal market," said a circular issued on December 7, 2009, by the textile and jute ministry. The ban will be in force until further notice.
The circular added that raw jute, both in the forms of kancha and pacca bales, which had been taken to ports but yet to be shipped was not allowed to export.
The price of raw jute rose significantly in recent times, mainly due to an inadequate supply of the natural fibre. Jute mill operators said that the raw jute price had jumped to Tk1,700-1,750 per maund from Tk 1,200-1,250 some months ago, and they were unable to afford such high prices.
The country's total availability of raw jute could be 4.5 million bales in 2009. It was estimated that local jute mills — both private and state-run ones — consumed 3-3.2 million bales of raw jute per annum, while the country's raw jute export is about 1.8 million bales a year.
Country Focus:
Bangladesh maintains apparel exports with low cost advantagesby Ajay Sinha and Staff Reporters
Situated in South Asia adjacent to India, Bangladesh was ranked as the 48th largest economy in the world in terms of gross domestic product (GDP) by the International Monetary Fund (IMF) in 2008. The country's per capita income was US$621 in the financial year (FY) of 2008-09, with a rise of US$62 compared to the previous year (2007-08), according to figures of the Bangladesh Bureau of Statistics (BBS) announced in June 2009.
The textile and apparel industry is one of the biggest sources of national economic revenue. About 75% of Bangladesh's total export earnings come from ready-made garment exports, according to experts at the World Bank. The major markets are North America and Europe.
Ready-made garment made in the country are mainly divided into woven and knit products. Wovens are usually shirts, T-shirts and trousers, whereas knits from Bangladesh are mainly intimate wear, stockings, sweaters and casual wear.
Bangladesh's textile and apparel industry has been greatly benefited from quotas under Multi- Fibre Arrangement (MFA) in the North American market until 2005 and the preferential market access to the European Union. The apparel sector thereby grew phenomenally from US$3.5 million in 1981 to over US$10 billion per annum in recent years.
In the fiscal year ended June 30, 2009, Bangladeshi knitted and woven apparel exports reached US$12.35 billion, the government's Export Promotion Bureau said.
Industry observers believed that as a number of Asian textile and apparel factories closed down partly due to higher wages and costs, some buyers shifted orders to new global sourcing destinations. Bangladesh was one of the beneficiaries.
Looking ahead, Bangladesh has opportunities to boost apparel exports to the US and the EU countries where the demand for low cost apparel is increasing. However, it remains unsure how far the two major markets will improve their economies in 2010.
Public policy is also crucial to boost Bangladeshi apparel industry. The government policy of liberalization of the economy encouraged private sector investments. Low cost energy and natural gas provides Bangladesh's textile industry with a competitive advantage in producing labor-intensive goods. A large domestic market is also an advantage for the country's apparel industry.
Cheap and abundant labor forces have been an advantage for Bangladesh's apparel industry. Wage of the garment workers was last reviewed in 2006 to Tk 1662. With the rising living cost in these years and unrest among the workers during 2008 and 2009, a number of leading international buyers, including WalMart, H&M, Levis, Nike and Tesco, expressed concerns in early January over the issue of wages in the country. They wrote a letter to the country's Prime Minister for this matter. The wage issue affects over 4,000 factories and three million workers. |
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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