Manufacturing factories in Cambodia have increased on account of the Regional Cooperation Economic Partnership (RCEP) and the Free Trade Agreement with China.

Cambodia has a total of 1,947 factories with a registered investment value of $15.7 billion as of June this year, as per a report by the Ministry of Industry, Science, Technology, and Innovation.

The products made by these manufacturing factories in the first half of 2022 increased by 75 per cent to $7.57 billion. The factors exported products worth $5.26 billion and the rest were sold domestically.

From January to July of this year, 112 new factories opened while 47 factories closed down. FTA with China, RCEP, and strong demand for Cambodia-made products in the US and Europe, which are Cambodia’s main markets, have built confidence in investors to invest in Cambodia, says HengSokkung, Secretary of State and Spokesman.

Securing sufficient raw materials to local production chains is another factor in building bold confidence in investors, he said, citing that those raw materials are imported mainly from China.

The manufacturing sector is estimated to contribute 39.9 percent of the Gross Domestic Product (GDP) in 2022, he said, adding that the sector has created some 1.04 million jobs.

Among the manufacturing plants in Cambodia, 1,100 are garment, footwear and travel goods factories, and the rest are food and beverage, automotive assembly, cement, electronics, and pharmaceutical factories, among others. The garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia.

The world’s largest spandex manufacturer and the first global developer to commercialize bio-based spandex, Hyosung has received eco-product certification from SGS guaranteeing that creora® bio-based spandex is made with plant-based materials and is produced in a harmless and eco-friendly environment.

Hyosung is a comprehensive fibre manufacturer and its creora® spandex is the world’s leading spandex brand.

Hyosung informed that its creora® bio-based spandex is made by replacing 30 per cent of petroleum-based resources with bio-based raw materials derived from industrial field corn, which is also called dent corn.

According to a recent third-party life cycle assessment, the manufacturer of creora® bio-based spandex reduces its carbon footprint by 23 per cent as compared to the production of regular spandex.

Additionally, the sustainably grown feed-stock used to make the fibre is responsibly grown by farmers who target and measure their efforts to protect the land, air and water.

While ideally used with other bio-derived natural fibres and bio-derived synthetics, creora® bio-based spandex is suitable for all textile applications used for sportswear, ready to wear and loungewear, it provides the same ultra-stretch quality and recovery as Hyosung’s creora® Powerfit spandex.

Hyosung is planning to introduce creora® bio-based spandex made with 100 per cent bio-derived content in the future.

The All Pakistan Textile Mills Association (APTMA) believes export earnings of the textile sector will decline to $3 billion in the current fiscal year due to government’s policies that have strangulated the largest dollar-earning sector of the economy.

The sector has performed extremely well in the last two years with forex earnings increasing by $7billion. However, the sector currently faces scarcity of working capital, says ShahidSattar, Secretary General, APTMA.

According to Pakistan Bureau of Statistics, Pakistan’s textile exports increased almost 26 per cent to $19.3 billion in 2021-22. The national currency has lost more than two-thirds of its value of late, which means the pre-existing limits on textile mills’ working capital have become redundant. Exporters are facing huge issues in financing the export cycle, which lasts four to six months, adds Sattar

He criticized the government for failing to supply gas and electricity to the textile units that have recently been either upgraded or built anew using the subsidized loans under the Temporary Economic Refinance Facility (TERF).

Latest data from CCF Group shows that Bangladesh's apparel exports increased by 16.6 per cent Y-o-Y in July 2022 to $3,367 million while it declined by 17.7 per cent month-on-month. And the knitted apparel exports rose by 11.8 per cent Y-o-Y but decreased by 16.9 per cent M-o-M. Bangladesh's woven apparel exports increased by 23.1 per cent Y-o-Y but declined by 18.8 per cent M-o-M.

The fiscal year of Bangladesh was from July last year to June this year. Pants emerged as the largest exported apparel item, accounting for 34 per cent in fiscal year 2021/2022, T-shirts and knitted shirts came second at about 23 per cent, sweaters accounted for 13.2 per cent, shirts and tops accounted for 6.5 per cent, which had been decreasing for years. The growth rate of exports of all categories in the fiscal year 2021/2022 were over 30 per cent, yet the totaled exports only achieved 16.6 per cent growth in July. The growth of Bangladesh’s apparel exports is expected to move down further considering the consumption status in EU and US countries.

During the fiscal year 2021/2022, the European Union was the most important destination for Bangladesh's apparel exports, accounting for over 50.2 per cent of the total, up by 33.9 per cent compared with last fiscal year. The exports to the United States reached $9billion, accounted for 21.2 per cent of the total, and increased by 2.3 percentage points.

Revenues growth from China's textile industry remained stable in the first half of this year, official data showed.

Revenues of textile companies with an annual main business income of at least 20 million yuan (about $3 million grew by 5.7 per cent Y-o-Yto 2.52 trillion yuan in the first six months of 2022, , according to the Ministry of Industry and Information Technology.

The total added value of these companies rose 0.9 percent Y-o-Y during the period.

The combined sales of main retailers amounted to 8.12 trillion yuan in the January-June period, up 0.8 percent from a year earlier. The country's garment exports amounted to $156.5 billion, an increase of 11.7 percent.

But the data also showed a 17 percent year-on-year decline in total profits of these companies and slight drops in yarn, cloth and garment output. The textile sector's employment levels also went down mildly.

A recently published policy paper recommends, to benefit from the extension of GSP plus status from 2023-33, Pakistan needs to fill the gaps on issues like honor killing, forced marriages, child labor laws, cancellation of the registration of INGOs and crimes against journalists. The paper was jointly published by Friedrich Naumann Foundation for Freedom Pakistan and Policy Research Institute of Market Economy (PRIME).

Titled, ‘Pakistan and the European Union under GSP+ Policy Paper,’ the paper highlights Pakistan’s trade performance under the scheme. It warns, absence of this scheme would lead to 12 per cent MFN tariffs and to retain the scheme for 10 more years, the country needs to introduce five new laws in addition to the earlier 27.

GSP+ loss threatens $3 billion textile exports

The policy paper also recommends that for the next agreement, Pakistan should negotiate with the EU on tariffs lines not falling under GSP+. Pakistan needs GSP+ status to deal with the current energy crisis, fiscal deficit, balance of payment deficit and depleting foreign exchange reserves. A loss of the facility would cause the textile industry to lose $3 billion worth of exports annually, warns Pakistan Ready-made Garments Manufacturers and Exporters Association.

The paper says, while Pakistan has introduced certain legal and institutional reforms, to comply with GSP+ obligations, it has not made any significant progress on labor rights. One of Lahore’s largest garment manufacturers is currently negotiating with the EU on labor and environmental standards. Meanwhile, presence of women in high-level occupations remains limited and their participation in the labor market less.

The UN Human Rights Convention has made certain positive changes regarding this. It finalized the Federal Domestic Violence Bill in 2019, appointed the first female chief justice of the High Court and incorporated a Transgender Person under the (Protection of Rights) Act 2018.

Little progress on child and forced labor

However, the EU Election Observer Mission in Pakistan claims, election process is military influenced. There is also an increase in child labor and forced labor in the country. As per the Global Slavery Index, Pakistan is one of the top 10 countries with a high presence of modern slavery in the form of threats, violence, coercion, abuse of power or deception to laborers.

UN Conventions on Good Governance opines, European Union can aid the approval of next GSP+ status by making an on-site visit to verify the implementation of the EC recommended reforms. The paper also recommends that the Union amalgamate its demands with Pakistan’s capacity to introduce an effective trade policy. Pakistan’s inability to compete effectively in the EU has already caused the country to lose out on market-enhancing opportunities.

Initiatives to benefit from the GSP+ scheme

In order for benefit from the GSP+ scheme, the policy paper recommends Pakistan implement the following initiatives.

• Urges Pakistan’s Board of Investment to attract Chinese investors to set up textile processing plants in special economic zones.

• Urges Pakistan’s commercial counselors in the EU to increase demand for Pakistani products in Europe.

• Recommends, they should target more SMEs looking to procure from Pakistan. Mandatory power supply to export-led manufacturers is also one of the paper’s recommendations.

• Introduce zero duties on raw materials required to make man-made fibre clothing in the EU market.

• Recommends a reduction in customs duties on imported machinery used in the textile sector.

With the current political turmoil and rising inflation, getting ready for GSP+ 2023-33 status seems more challenging for Pakistan.

The Uttar Pradesh government has signed an MoU with e-commerce site Flipkart to bring state's handicraft products on the platform.

Through this initiative, the state government aims to tap the 40 crore customers on Flipkartto provide a vast market for handicraft products of the state.

Along with handicrafts and handloom and products, the platform will also display products made by Divyangjans of the country.

Flipkart is also training craftsmen for this initiative while the government is providngfacilities and loans to handicraftsmen and weavers and taking their products to the market of the country.

The state government is also organizing camps to give subsidies on loans to weavers. The government is providing a subsidy of up to 20 per cent on loans and up to seven per cent on interest as per rules.

US’ textile and apparel imports grew by 30.97 per cent to $66.308 billion in the first six months of 2022, compared to $50.626 billion in the same period of 2021. With a 26.8 per cent share China continued to be the largest supplier of textiles and clothing to the US, followed by Vietnam with 13.87 per cent.

As per a Fashion Network report, apparel dominated of textiles and garments importsof the US in January-June 2022, and were valued at $49.578 billion, while non-apparel imports accounted for $16.729 billion, according to the latest Major Shippers Report, released by the US department of commerce.

Segment-wise, among the top 10 apparel suppliers to the US, imports from Bangladesh and Indonesia surged by 60.30 per cent and 60.27 per cent year-on-year respectively. Imports from India and Cambodia too grew by 57.27 per cent and 52.52 per cent respectively. Additionally, imports from Pakistan grew by 49.99 per cent compared to the same period of the previous year.

Of the total US textile and apparel imports of $66.308 billion during the period under review, cotton products were worth $29.541 billion, while man-made fibre products accounted for $33.396 billion, followed by $1648.531 million of wool products, and $1721.557 million of products from silk and vegetable fibres.

By defining ‘sustainable attributes’ for bluesign®approved chemicals registered in the bluesign®Finder, Bluesign is furthering its ability to provide more sustainable solutions by providing specified search functions to help chemical suppliers and the textile industry make better informed decisions. The bluesign®Finder is a web-based, advanced search engine for manufacturers. It contains a positive list of preferred chemical products. Today more than 20,000 bluesign®approved chemical products are registered in the bluesign®Finder

In addition to the existing functions within the bluesign®Finder, Bluesign®System Partner chemical suppliers can claim selected sustainability attributes for their bluesign® approved chemical products that will be displayed within the bluesign®Finder. Sustainability claims will be verified by Bluesign during on-site assessments and through chemical assessments. The Bluesign® Finder will be amended with search functions starting this year. It will evolve and implement a comprehensive online search engine for sustainable textile auxiliaries and dyes.

Burberry’s net-zero emissions target has been approved by the Science Based Targets initiative (SBTi).

Burberry target’ to reach net-zero emissions by 2040 are based on the latest climate science and meet the urgent need to keep warming to 1.5°C in line with the Paris Agreement. Burberry’s net-zero target is underpinned by a series of commitments across scope 1, 2 and 3 emissions.

In the near term, the brand aims to reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 95 per cent by 2023 from a 2017 base year, and reduce absolute scope 3 GHG emissions 46.2 per cent by 2030 from a 2019 base year.

In the long term, Burberry commits to maintain at least 95 per cent absolute scope 1 and 2 GHG reductions from 2023 through 2040 against a FY2017 base year, while reducing absolute scope 3 GHG emissions 90 per cent by 2040 from a 2019 base year.

Burberry’s net-zero emissions target builds on the British luxury brand’s longstanding commitment to reduce its direct and indirect environmental impacts and make a positive difference to the lives of people around the world. Burberry is currently carbon neutral across its own operations globally, all the electricity it uses is from renewable sources and almost every product it makes has a social or environmental benefit.