A fresh wave of COVID-19 may worsen the situation of Vietnam’s textile and footwear industries, still reeling from the impact of the first. According to the ministry of industry and trade, apparel production in July rose by 13.2 per cent over June but was nearly 5 per cent down year on year. Exports of textiles and footwear are down by 21 per cent and 8 per cent respectively. TNG Investment and Trading JSC, which manufactures clothing and footwear, reported first half revenues and net profit down by 10 per cent and 29 per cent at VND1.84 trillion ($79.3 million) and VND66 billion ($2.84 million) respectively.

The Vietnam National Textile and Garment Group (Vinatex) reported a 15 per cent fall in revenues and 25 per cent decrease in profits despite partially switching to manufacturing face masks and protective clothing and retaining all its workers. The situation was better than predicted, according to Vinatex's deputy general director, Cao Huu Hieu, who said the company had anticipated declines of 30 per cent in revenues and 50 per cent in profits. Song Hong Garment JSC’s profit had fallen by 44 per cent to just VND122 billion ($5.26 million), according to a report in a Vietnamese newspaper.

While the switch to making face masks and protective clothing was considered a lifesaver for many garment firms in the first half of the year, a global oversupply of these products has caused prices to plummet. Firms such as TNG have even stopped manufacturing masks and started focusing on high-value products.

Istanabul Textile and Apparel Exporters Association (ITKIB) urged the government to provide financial support, including tax exemptions and debt delays, to help the sector remain competitive during the coronavirus pandemic.

Mustafa Gültepe, Chairman,said that the industry experienced a 16.5 per cent contraction in exports during the January-July period compared to the previous year following the global demand plunge induced by the pandemic.

Gültepe noted that the sector initially set a target of a 10 per cent increase in exports for 2020 but had to revise these projections after orders drastically declined in March following the global spread of the virus.

He noted that the monthslong closure of clothing shops and businesses in the country during the peak of the pandemic contracted the domestic market, putting additional pressure on the sector.

The sector recorded an upward trend in July, however, posting a 25% increase in exports thanks to the gradual reopening of world economies and the rapid recovery in the European Union markets, Gültepe said.

Gültepe said the industry is seeking the lifting of customs duties that were recently introduced for imports of intermediate products used in textile factories such as zippers, buttons and fasteners.

Outland Denim plans to open its Cambodian manufacturing facilities to other brands and establish an in-house standard for sustainability.

The Australia-based brand, known for its sustainably washed organic cotton jeans and efforts to eradicate modern slavery, is ramping up its voice in an effort to lead the denim industry to reduce its collective environmental impact. Part of this positive change is the development of the Maeka Standard, a certification that represents Outland’s high expectation of sustainability as a manufacturer and as a brand.

The standard is a combination of Outland’s policies that center on zero exploitation and jeans that are made without slavery, poor labor standards or environmentally harmful materials and techniques; garments made with the intention to create positive change; and a social mission to “correct injustices with the desire to positively impact” all stakeholders.

Outland will extend the standard to other brands it manufactures for in an effort to streamline sustainable production, alleviate doubling up on intellectual capital and infrastructure and reducing the costs associated with responsible production. The first products in development with the Maeka Standard are a denim jacket and jeans from the Outland Denim x Karen Walker collection.

Hugo Boss sees pent-up demand for formal outfits for events postponed by lockdowns. The brand reported quarterly revenue of €275 million ($323.5 million), missing an average analyst forecast for 288 million, while its operating loss of €124 million was ahead of consensus for a loss of 133 million.

The company known for its smart men’s suits already makes more than half of its sales from sportswear or casual styles. In the second quarter, products like T-shirts, polo shirts, trousers and lounge wear proved more resilient than formal wear.

Sales rose 4 per cent in the quarter in mainland China, including double-digit growth in June, a similar trend to that reported by LVMH, the world’s biggest luxury goods group, which said last week that momentum had especially improved in China. By contrast sales fell 59 per cen in Europe and 82 per cent in the Americas, with unrest and demonstrations in the United States in May and June putting more strain on its business.

The Indian Government plans to introduce measures to prevent trade partners mainly in Southeast Asia from re-routing Chinese goods to India with little added value. The government also plans to raise its current quality standards of imports, impose quantity restrictions, mandate stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries.

The government aims to mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items, the officials said. Last week, India's trade ministry issued a notice to restrict inbound shipments of TVs by requiring importers to get a special license. The moves are expected to primarily hurt Malaysia, Thailand, Vietnam and Singapore - members of the Association of Southeast Asian Nations (ASEAN) with which India has a free trade agreement (FTA).

The government also plans to raise the value-addition requirement for products imported from these countries from the current level of 20 per cent-40 per cent. Also, it will stick to only those FTAs that it deems mutually beneficial. India has a trade deficit with most of the countries it has signed FTAs with. It finds a number of products being routed through the ASEAN economies into India, particularly in the field of electronics.

Tara Donalson, Editorial Director, Sourcing Journal along with senior designer Celena Tang, launched The Diversity List, an interactive site to illustrate the sector’s lack of inclusivity. Pulling data from fashion companies’ investor relations websites, social media posts and various publicly released reports, the site provides a concise breakdown of 100 of the industry’s top brands and fashion firms, from Nike to Anthropologie, Bloomingdale’s, Macy’s, Ralph Lauren, The RealReal and more.

The graphics show the ethnic and gender breakdowns of their workforces by percentage—from board members and executives through retail and distribution center workers. The graphics are presented alongside many of these companies’ recent commitments to diversity and inclusion in the wake of nationwide civil unrest—sometimes drawing a contrast between promises and reality.

Some private companies included on the list do not share diversity numbers publicly, but Donaldson hopes The Diversity List will encourage them to take steps toward transparency even if they’re not required to. Other companies have undoubtedly put work into creating inclusive teams, and notably their efforts were reflected in their public-facing statements in recent months.

Donaldson also noted that a company’s workforce often seems to reflect its surroundings, to some degree. Kobe-based footwear brand Asics has a workforce that is 95 percent Japanese. Still, many American brands’ workforces don’t mirror their diverse consumer bases. Brands like Athleta, Banana Republic, Coach, Everlane, Gap, etc have more than half white employees with only few brands having people of color on their boards or in executive leadership roles.

SRTEPC has urged the Finance Ministry and the NITI Aayog to continue with the Merchandise Exports of India Scheme (MEIS) in order to boost exports. Ronak Rughani, Chairman, SRTEPC says the sudden termination of scheme on July 23 is a shock for exporters as it would severely hit exports from the country which have already been bleeding because of COVID-19 pandemic.

Rughani further stated that MEIS was designed by the government under the Foreign Trade Policy 2015-20 to provide relief to exporters to offset infrastructural inefficiencies and associated costs. Currently infrastructural inefficiencies and associated costs have multiplied due to lockdown, paralyzed economic activities, created labor shortage, etc. In such a situation, incentives and support provided in the MEIS are extremely important to cushion exports. Rughnani urged the government to restore the MEIS benefits till the RoDTEP is activated.

MEIS was launched as an incentive scheme for the export of goods after merging various schemes for different sectors. Duty credit scrips issued under earlier incentive schemes were transferred to the MEIS and the rewards are given by way of duty credit scrips to exporters.

Sustainable Apparel Coalition (SAC) and Higg Co have released an updated version of the Higg Materials Sustainability Index (Higg MSI). The index is a leading tool to assess the environmental impact of materials in the apparel, footwear and textile industry. The Higg MSI now offers a new database and updated score.

Through this platform, various factories can calculate the environmental impact of millions of possible material manufacturing variations. It empowers brands, retailers and manufacturers to compare material life-cycle assessment data and make more sustainable design and material choices.

The new Higg MSI also includes migration from a standalone website to the Higg.org platform, alongside other Higg tools, addition of a packaging library, comparisons and customization, addition of a trims and components library, comparisons and customization, ability to customize transportation distances and modes between processing steps, ability to assign chemistry certifications at the process level and new background LCA database (GaBi).

Raymond UCO, the pioneer in denim innovation and solutions, in partnership with Swiss textile innovator HeiQ, has launched a highly protective denim fabric range called Shield with HeiQViroblock, a sustainable, antiviral and antimicrobial technology that has been tested and proven effective to destroy 99.99 per cent viruses.

The Shield collection offers a wide range of denim fabrics that aim to fight viruses & bacteria. This innovative denim range also features fabric powered by HeiQViroblock technology which has been tested effective against a dozen viruses and bacteria, including SARS-CoV-2, H1N1, H5N1, H7N9, H3N2, and sendai virus, all with an effectiveness above 99.99%.

Studies suggest viruses and bacteria can remain infective on textile surfaces for days. Human Coronavirus (SARS-CoV) persist for up to two days on surgical gowns at room temperature. In this context, antiviral treatments for textiles can significantly reduce the risk of transmission and contamination thus ensuring hygiene and safety. HeiQViroblock is a unique combination of advanced silver and vesicle components which is imparted technically on the fabric surface. These active components in the HeiQViroblock kill bacteria and destroy common harmful enveloped viruses within a short time span of two minutes of exposure (according to modified AATCC100 test conducted on Sendai virus). HeiQViroblock is designed to last on the fabric even after repeated domestic washes.

HeiQViroblock is certified as safe and sustainable with all its ingredients designated as cosmetic grade, bio-based and recycled. Beta Analytics Testing Laboratory has certified that HeiQViroblock contains 72 per cent bio-based carbon. It is EU REACH and US FIFRA compliant, OEKOTEX® certified, ZDHC and bluesign® homologized. Denims treated with HeiQViroblock are complaint with EU BPR and US EPA. The HeiQViroblock ingredient is marketed under brand name HeiQ V-Block in the USA.

The Cotton Association of India (CAI) has increased crop estimates for 2019-20 season to 33.55 million bales of 170 kg each compared to its previous estimate of 33.00 million bales made during the last month. Crop estimate finalized by the CAI for 2018-19 was 31.20million bales of 170 kg each. Total estimated cotton supply till end of the cotton season 2018-19 is 38.25 million bales of 170 kg each which consists of the opening stock of 3.2 million bales, crop for the season estimated at 33.55 million bales and imports estimated by CAI at 1.50 million bales. Imports are estimated to be lower by 1.7 million bales compared to the previous year’s estimate of 3.2 million bales.

According to the association, domestic consumption for the entire crop year has been estimated at 28.0 million bales, i.e. at the same level as estimated in the last month. The consumption for the crop year 2019-20 was earlier estimated by the CAI at 33.1 million bales but the same was later reduced by 5.1 million bales due to the lower consumption of cotton on account of disruptions caused by the Covid-19 pandemic in the country.

The CAI has retained its export estimate for the season at the same level as estimated in the previous month i.e. at 4.7 million bales against 4.2 million bales estimated earlier.

The increase of 0.50 million bales in the export estimate than estimated in the previous year was made looking to the favorable conditions existing for exports of cotton from India. The carryover stock estimated at the end of the season is 5.55 million bales.

The estimate of cotton imports into India has been maintained at the same level as estimated in the previous month i.e. at 1.5 million bales. This import estimate is lower by 1.7 million bales compared to that estimated for the last year. The Indian cotton arrivals during the months of October 2019 to June 2020 are estimated at 32.70 million bales of 170 kg each. The closing stock as on September 30, 2020 is estimated at 5.55 million bales of 170 kg each.