FW
Some 57 garment factories in Laos produce clothing for exports, 28 factories produce clothes for exporters and the domestic market, and the remaining 31 factories produce parts of clothing.
These factories create 27,000 jobs for local people, with 90 per cent of jobs going to women. These factories have FDIand the FDI has come mainly from Thailand. This is 60 to 80 per cent. The remaining is from France, Hong Kong, Italy, Taiwan. Now the new investment is coming in and it is mainly from Japan. Japan has set up four new factories. Japan is shifting investment away from China. The investment has gone into machinery, merchandising. These factories are mainly into men’s wear and women’s wear.
The EU is the main clothing export market for Laos, while Japanese investors are interested in moving their clothing production base from China to Laos.
In 2016, Laos’ garment exports to the EU fell ten per cent; to Japan fell five per cent; to the US fell 21 per cent decline; and to Canada fell 56 per cent.
However Laos’ garment exports to other countries increased 64 per cent.
Shortage of workers is a chronic problem in the sector, resulting in a reduction of garment exports.
The European Union has threatened suspension of trade privileges for Bangladesh if labor standards are not improved further. The suspension would mean that Bangladesh would have to pay 12.5 per cent duty for exports to the 28-nation bloc.
At present, the country enjoys zero-duty access under the EU's Everything But Arms (EBA) scheme.
Bangladesh will need to demonstrate that it is taking concrete and lasting measures to ensure that labor rights are respected.
Under GSP (Generalised System of Preferences) regulation, beneficiaries are required to respect international principles of human rights and labor rights in order to continue to benefit from this preferential trade regime with the EU.
The EU wants Bangladesh to address issues pertaining to freedom of association and collective bargaining. It has called for full freedom of association for workers in the export processing zones, and allowing workers' organisations to associate with their counterparts from outside the export processing zones.
In 2015, Bangladesh was by far the largest exporter to the EU under the EBA scheme. The country accounted for 65.7 per cent of the EBA exports.
Last fiscal year, Bangladesh's exports to the EU stood at 18.68 billion dollars , which is 54.57 per cent of total exports in the 12-month period.
Vietnam in the first two months of this year has seen an increasing foreign direct investment from China.
A total of 721.7 million dollars of Chinese FDI was recorded in Vietnam in the two-month period, up 152.78 per cent year-on-year, accounting for 21 per cent of the country’s total FDI. China has become the second largest FDI contributor to Vietnam, after Singapore.
There is a clear trend of transferring Chinese capital into southeast Asian countries including Vietnam. In other southeast Asian nations such as the Philippines, Malaysia, and Thailand, Chinese investors are also pouring money in giant projects.
Chinese companies’ investment in Vietnam in January accounted for 22 per cent out of the country’s total foreign direct investment in the month.
This placed China in the third position among foreign investors in Vietnam in January, just behind Singapore and South Korea.
By the end of 2016, China’s total FDI in Vietnam placed China in the eighth spot among foreign investors in Vietnam compared to the thirteenth spot China was in in 2012.
Most Chinese-invested projects in Vietnam are concentrated in areas which have cheap labor but face a high risk of pollution such as garment and textiles, hydropower, steel production, chemicals and cement.
Bangladesh’s denim shipments to the US have remained stagnant for the last seven years.
Among the reasons for the slow growth are the growing popularity of overdyed fabrics and higher imports from the US' neighboring country Mexico.
In recent years, the US has increased denim imports from Mexico due to competitive prices and shorter lead times. Besides, American retailers get duty benefits for sourcing from Mexico. Bangladeshi garment imports are subjected to 15.62 per cent duty upon entry to the US, while Mexico’s wares get duty-free access. Moreover, although the US does not produce a lot of garment items for export, American manufacturers, especially those in Los Angeles, make a huge quantity of denim products.
Another important reason for the slow growth of denim exports is that US retailers purchase low-cost denim products in bulk from China.
Despite slow growth in denim exports, Bangladesh still remains the third largest supplier in the US market. Only China and Mexico supply more denim to the US than Bangladesh does.
The share of Bangladesh in the US denim markets is 12.03 per cent, while that of China and Mexico is 26.04 per cent and 25.40 per cent.
Bangladesh presently has around 30 denim producing factories.
After three days of steady business between March 15-17, 2017, new discoveries and networking amongst global industry, the world’s largest apparel fabrics and accessories trade fair for Spring/Summer closed its doors with record number of exhibitors. Nearly, 3,341 exhibitors from 26 countries and regions made the most of Intertextile Shanghai Apparel Fabric’s global platform, a 5.9 per cent increase compared to 2016 (3,155 from 27 countries).
After three days of steady business between March 15-17, 2017, new discoveries and networking amongst global industry, the world’s largest apparel fabrics and accessories trade fair for Spring/Summer closed its doors with record number of exhibitors. Nearly, 3,341 exhibitors from 26 countries and regions made the most of Intertextile Shanghai Apparel Fabric’s global platform, a 5.9 per cent increase compared to 2016 (3,155 from 27 countries). The buyer number remained steady, with around 71,000 visitors from 103 countries and regions attending (2016: 71,163 from 100 countries and regions). This included buyers from concurrent Yarn Expo, CHIC and PH Value fairs who also attended Intertextile Shanghai.
As Wendy Wen, Senior General Manager, Messe Frankfurt (HK) Ltd said, “This fair is one of the most important events for worldwide textile market, and the strong business results for exhibitors and buyers this edition once again validates this. The amount of new business that was generated here this week, as expressed by many exhibitors, was the most pleasing aspect for us. This is due in part, , to our efforts over the last few editions to improve the quality of buyers sourcing at the fair, as well as a strong focus on our product zones which target the growth areas of the market. We have also continued our work with the venue to ensure service standards continue to improve, which has provided a more conducive environment all-round for business to take place.”
Happy Exhibitors
Amongst the many exhibitors reporting strong results were two world-renowned brands returning to the fair. With long participation at Intertextile Shanghai, they managed to meet new, quality buyers in this edition. “Although we are always exhibiting here, we still see new people at the fair and can always find potential customers,” Eberhard Ganns, MD, Union Knopf (HK) Ltd, Germany, explained. “Many companies in China are growing in size as well as quality, so they are interested in our products. Around 70 per cent of people at our booth have been new and interested customers, so Intertextile Shanghai is the show to be and is an absolute must! We are telling everyone if you want to be serious in this business then you have to be here.” Ganns also said they didn’t just receive interest from Chinese buyers, who anyway have significantly increased in recent years, around 20 per cent of visitors were from overseas including Asia, Europe and the US.
Korea’s Hyundai Chemical has been participating in the Spring-Autumn editions of the fair for four years, with Youn Seok Jang, Overseas Sales Team Manager, explaining the reason for returning is Intertextile Shanghai’s ability to attract the right buyers. “We obtained over 50 business contacts from both new and existing clients over two days. A large number of contacts were domestic Chinese buyers, while buyers from the Americas and Europe also showed genuine interest in our latest products. The fair keeps getting better year after year, and we are able to connect with enough new buyers every edition to make it worthwhile for us to come back repeatedly.”
Unbeatable sourcing platform for global industry
Returning American buyer Steven Fuller, Director Men’s Woven’s, Tommy Bahama, was at the fair to source unique and innovative fabrics. “I have been to many previous editions and this is one of the most comprehensive sourcing platforms for our company to gain contacts. There is no place in the region that has these many suppliers to choose from. I met companies who develop their own fabrics, and have also had the chance to speak with the product developers, which is helpful in explaining the nature of their product. This also makes Intertextile a central meeting hub for key industry players. This edition we connected with over 20 suppliers, while having already placed orders with four of them, including from China, Korea and Taiwan. Overall, I am pleased with the fair and like every year, it is able to fulfil our sourcing needs. We will definitely be back again this October.”
Autumn edition next October
Intertextile Shanghai Apparel Fabrics-Spring Edition 2017 was co-organised by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. The next edition, Intertextile Shanghai Apparel Fabrics – Autumn Edition 2017, will take place from October 11-13.
Trevira GmbH, European manufacturer of high-value branded polyester fibres and filament yarns for hygiene and technical applications, will exhibit its innovative fibres for the wide range of technologies and applications in the non-wovens sector at Index17, the leading expo for non-wovens, to be held from April 4 to 7, 2017 in Geneva, Switzerland.
A new offering in biopolymer fibres, Ingeo, a siliconised PLA hollow fibre for use in fillings will also be shown at the expo.
In response to customer demand in terms of product functions and material properties, the comprehensive product range for airlaid applications is being continuously enhanced.
This also applies to special fibres for the carding sector and shortcut types for the paper industry where the focus in on improving dispersion.
With regard to the increased need for fibres with additional functionalities and to the use of fresh combinations of raw materials, capacities in bico-fibres are being expanded.
For both the polyester and the PLA programme, Trevira has also developed modified fibres for the hygiene sector (e.g. for wet wipes) where these stand out due to their particularly soft handle. It will show these new fibres at the expo.
Emphasis is also being laid on finishes for fibres that must meet food industry standards, likewise on antimony-free polyester fibres, the aim here being to enhance product safety.
At Index 2017, Trevira will participate in a joint presentation with sister companies from the Indorama Ventures parent group.
Following the actions on International Women's Day in Hong Kong, two Indonesian unions protested at the Japanese Embassy in Jakarta on March 23. Their protest was to demand justice for workers at the closed factory PT Jaba Garmindo in Indonesia which supplied Japanese retailer Uniqlo.
The Indonesian factory closed down without providing workers with US$10.8 million in legally required compensation. The company ended in bankruptcy in April 2015 without providing final wages and severance benefits to 4,000 workers at multiple locations.
The actions are supported by Clean Clothes Campaign, War on Want, People and Planet, SACOM, Globalization Monitor and Yokohama Action Research. Last week protests took place in Japan, targeting Uniqlo stores.
As this report leaked out, the buyers have, to date, refused to pay up the workers in full. Failure to provide legally required severance pay is a very common form of wage theft in the garment industry.
Often owners just abandon factories leaving the country without making any arrangement for workers’ severance or payment to other creditors.
In the last five years, an increasing number of international apparel brands have taken responsibility for ensuring that these workers are paid, often by directly providing funds to workers. In the last decade, student and consumer pressure has successfully pushed international apparel brands to take responsibility for funds denied workers when their factories close.
In a landmark case in 2013, after significant pressure from the CCC network, United Students Against Sweatshops, U.S. universities and SumOfUs, adidas directly compensated workers for legally required severance owed by a supplier factory in Indonesia.
Since then, in response to demands by workers and international advocacy organisations, Disney, Fruit of the Loom, Hanesbrands, Adidas, Nike, H&M, and Walmart have either directly compensated workers denied severance or advised their supply chain partners to do so in Honduras, El Salvador, Indonesia, and Cambodia.
Cotton growers of Georgia can expect to make at least 5 to 6 cents more per pound than they received this time last year, according to Don Shurley, University of Georgia Cooperative Extension cotton economist.
The escalation of the price is due to many factors, but the main cause is the increase in exports. Most of the cotton now is exported of which about three-fourths is shipped overseas, said Shurley. The country’s exports are doing really well. The quality that is liked by the U.S. especially here in the Southeast has been just excellent in recent years, she added.
Shurley has been with UGA Extension for more than 26 years and believes that this year hr cotton produce is the best quality of cotton Georgia has produced in that time. Much of the improved quality is attributed to newer varieties and technology associated with those varieties.
However, some of the last year’s yield potential was lost due to the late-season drought. The lack of rain prevented some of the yield at the top of the plants from fully developing. But because of the extended drought, growers were able to get into the fields and harvest the crop in a timely manner.
Thanks that the country didn’t have any rain or wind that reduces the quality. Hence the harvest conditions were really very good,” Shurley observed.
Additionally, cotton acreage was up last year when Georgia planted 1.18 million acres compared to 1.17 million acres in 2015, according to the UGA Farm Gate Value Report.
This year, however, the acreage in Georgia may decrease due to estimated high peanut prices, Shurley predicted.
As for the cotton seed, Shurley is still trying to calculate the data and average them together. However, he hasn’t seen an increase in the price of seed or technology fees in recent years. The differences in prices from year-to-year result from the different varieties of cotton seed combined with newer technology, Shurley maintained.
Prices may be higher next year, but it would be because a new variety or new technology has been introduced to the market and not because of an overall price increase determined by dealers and seed manufacturers.
Despite talk about robots stealing jobs, some folks in the fashion industry aren’t perturbed at all. In fact, four women have embraced the idea. They believe new technologies like 3D printing could accelerate and transform production in the apparel industry.
Last week, a Fashion Group International of Los Angeles (FGILA) panel came together to discuss how this could happen. The discussion centred around Fashion Technology Innovation, Challenges and New Frontiers.
There was much talk of how advances in 3D printing and robotics could change the labour market. The answers to these queries were ideas such as sew bots and 3D printers replacing traditional sewing factories.
Pat Trautman, president of Global Garment Engineering said that in the US, people don’t have anybody those who want to sew. That’s why they needed sew bots to have a competitive advantage over foreign production.
“We need people to monitor the machines,” observed Irina Palmer, a technical designer for the Kendall + Kylie clothing brand.
Also in the panel were architects Julia Körner and Jenny Wu who discussed how they already use 3D printers to create their unique fashion pieces. Julia Körner is the founder of JK Design GmbH which specialises in digital design for 3D printing. She’s been trying to move 3D printing from catwalk to the streets. In 2015, she launched sporophyte which is a ready-to-wear, 3D printed collection.
She has also won awards for her use of 3D printing such as the Rising Star Award at the Global 3D Printing Awards by the 3D Print Show London 2014.
35-year-established Italian technology developer for the denim and apparel market, Tonello recently inaugurated a new area within their company in Sarcedo in the very heart of Veneto known as Italy’s blue jean region.
“Our Tonello Atelier is the place where garments at a gestational stage can see the light,” commented Alice Tonello, R&D manager of the company.
“They can be analyzed, studied, optimized, changed and tested. Here insiders will be able to have a complete view of all treatments and thousands of special effects they can explore and, thanks to Tonello machines, easily achieve.
This new Creative Area is the natural outcome of our philosophy: a concrete service for our customers that goes beyond the simple fact of being manufacturers of machines,” he added.
The new company’s section is dedicated to research and experimentation and is a direct offshoot of its R&D Center that has been appreciated for its ability to develop various innovative and sustainable, energy-saving and healthy garment innovation including, for instance, Ecofree, Nostone and Core.
Their new creative area was developed in collaboration with denim expert Piero Turk and aims to become a school, a training place and a craft shop where masters of denim can meet and pass on their experience and knowledge.
