Archive for August, 2007
Vietnam : Phuong Dong Garment expands F-House chain
August 30, 2007
Fibre2fashion.com, India
Phuong Dong Garment Company is expanding its domestic network of F-House fashion stores where it’s key and latest fashion collections will be on sale.
F-House range comprises polo shirts, T-shirts, shirts, Western-style trousers, khaki trousers, skirts and many more, aimed to the youth and office-going people.
All products of the collection are designed by Vietnam’s famous fashion designers and made of high–quality materials and accessories.
Ho Chi Minh City–based Phuong Dong Garment is one of leading fashion developer of the country.
Company is leading the trend of developing fashion from garment in a bid to do international integration.
Fibre2fashion, News Desk - Vietnam
August 31st, 2007
Bangladesh : Country to ink MoU with India to boost garment exports
August 29, 2007
Fibre2fashion.com, India
In order to boost exports of country’s readymade garments, Bangladesh Government has decided to sign an MoU with India for duty-free export of eight million pieces of readymade garments.
The proposal, which was made at the recently held 14th SAARC summit, was sealed during a subsequent visit to Dhaka by External Affairs Minister Pranab Mukherjee.
A meeting of the Council of Advisers on Tuesday approved the MoU proposal for duty-free import by the Indian government.
Garment manufacture of Bangladesh was hit by constant labour turmoil which was fuelled by bad working conditions and failure on the part of manufacturers to improve wages.
To add to this, political unrest adversely affected the exports in the latter half of 2006.
August 30th, 2007
Galloping garment sector goes downhill
The Daily Star, Bangladesh
Fails to reach EPB export target for first time; majority of RMG units lacks orders up to October
Syed Ashfaqul Haque
Growth in the readymade garment industry, the powerhouse of the country’s export economy, has slowed with the sector for the first time failing to reach export targets and facing a sharp decline in new orders.
The RMG sector, which accounts for more than 75 percent of Bangladesh’s export earnings, fell behind the export target of the EPB (Export Promotion Bureau) for the first time in history, notching a negative growth of 6.03 percent in knitwear products and barely edging past with 0.16 percent rise in woven items during the last fiscal year.
“Yes, we passed a rare disappointing year,†Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Anwar-Ul-Alam Chowdhury told The Daily Star, adding that garment manufacturers missed out on about $1.5 billion more exports due to orders being moved to other countries.
The grim export statistics followed growths of over 19 percent in knitwears and 14 percent in wovenwears beyond the EPB projection in 2005-06. Bangladesh even showed promise to stake a bigger claim on the $500 billion apparel market when its knitwear manufacturers made light work of quota-free concern in the post-MFA era, posting a record 35 percent export growth in 2004-05 fiscal year.
The manufacturing sector has grown rapidly in recent years but in the 12 months to June 30 exports rose by a modest 16.5 percent, compared to 23.12 percent in 2005-06.
Anwar-Ul-Alam Chowdhury blamed the slowdown on a weakened US economy and the unprecedented rioting at garment industries in and around Dhaka for 8 weeks when nearly 400 factories, most of which are socially compliant, were damaged and the DEPZ (Dhaka Export Processing Zone) was shut down twice.
The BGMEA boss said buyers placed 22-25 percent less orders last year and moved to new destinations in South East Asia.
Representatives of several local and foreign buying offices also confirmed shifting of significant orders, mainly to Vietnam and Cambodia, the two countries that emerged as potential competitors in the world clothing market with yearly growth of over 34 percent in knitwear items.
Country representative of a prominent German importer Obermeyer, AK Kamrul Alam, said that his buyers placed about 20 percent less orders last year mainly due to labour unrest and poor sales. Interestingly though, his buyers increased orders significantly in Vietnam, Cambodia and China.
Leading Italian chain store Gruppo Coin SPA has reduced its orders in Bangladesh to half, while at the same time piling up orders in India. Meanwhile, almost all the top buyers including American giant Wal-Mart cut down orders significantly due to the weakened US market and changing weather patterns in Europe that dictate season-based product sales.
The BGMEA president hopes for a turnaround in October, the period for the placement of bulk winter orders. “We might not have achieved the EPB target this time, but still the export volume from readymade garments grew from $7.9 billion to $9.2 billion in last fiscal year,†he said.
But that 16.59 percent export growth has not calmed the frayed nerves of garment manufacturers, a majority of whom have hardly any orders till October and fear how they will cope with fixed overhead costs and salaries.
“It’s a very unusual situation we are in here,†former BGMEA president Annisul Huq told The Daily Star. “Orders are very low up to October. Woven garments are in particularly bad shape. Even a big industry will now find it hard to squeeze out 10,000 pieces surplus order.â€
The leading garment exporter sees the sale loss to major retailers in the US and the Bangladeshi government’s failure to protect garment industries and investment as two main reasons for the slump in business.
In some cases, going gets so tough that owners are considering a temporary shutdown and retrenchment of workers.
Mohammad Faruque, chairman of a composite knit factory in Mirpur, has partially shut down his factory one month back and does not know when the factory could be run fully.
“In my 12 years in this business, I have never had to close the factory except for holidays and hartal days. We had order shortfall in some months but never in the past have we run out of orders like this,†he said.
General manager of another composite unit, Mehedi Hasan, can partially run his unit in Savar at present, although operational losses are piling up. “If things continue to go on like this, we will have to say sorry to our workers.â€
Alarmingly, there are plenty of Faruques and Mehedis now in the RMG sector, which directly employs nearly 2 million people and generates over $20 million export in related industries.
Market watchers meanwhile predict that worse is to come next year when the EU’s 7.5 percent export growth restriction on China goes by December-end. However, this concern is played down by experienced exporter Annisul Huq. “I’m concerned but not afraid,†he said, adding that Bangladesh garment would grow more strongly if the business climate was improved and the fears of RMG buyers dispelled.
“The buyers appreciate the anti-corruption drive, stable political situation and improvement in areas like the port, electricity and customs. But they are also concerned about where does the country go? Where does it end?â€
August 29th, 2007
Garment producers urged to take part in Source It Fair
Mathaba.Net, UK
Ha Noi (VNA) – The Viet Nam Textile and Apparel Association (Vitas) is calling on garment and textile businesses nationwide to attend Source It Fair, saying that this is a good chance for them to advertise their products to international customers.
The fair, which will be held in Shanghai, China, from October 29 to November 1, will offer Vietnamese producers an opportunity to seek materials from China, the world’s leading garment exporter, and other countries with an advanced textile industry.
During the fair, participants will visit several wholesales garment materials markets in China.
The fair is an initiative of the ASEAN Federation of Textile Industries (AFTEX) aiming to introduce ASEAN countries’ high-quality garments and textiles to potential customers and provide regional enterprises with cooperation opportunities.
August 28th, 2007
Faiza Mardzoeki: Life-changing experience at a garment factory
Kurniawan Hari, The Jakarta Post, Jakarta
Jakarta Post, Indonesia
Siti Faiza Hidayati Mardzoeki (Faiza Mardzoeki), 35, sat relaxed on a bench at a small cafe in Central Jakarta. Once in a while, she took a sip from her favorite drink — orange juice.
She had just attended a meeting with the crew after concluding the three-day performance of Nyai Ontosoroh, for which she was the scriptwriter.
“I’m very excited because the play received a positive response from the public. People were very enthusiastic,” Faiza told The Jakarta Post.
Nyai Ontosoroh is an adaptation of Bumi Manusia, a novel by renowned author Pramoedya Ananta Toer. The play was her second for the theater. In 2002, she produced Nawal El Saadawi’s Woman At Point Zero, during which almost 2,500 people saw the play.
Both plays have the same message: women’s issues.
“I believe that the struggle for women’s rights can be made through the cultural field, including theater,” she said.
Faiza was a sweet girl in her teens. She studied at night and, occasionally, went out with her peers to find things to read.
Her favorite material included pop teenage magazine Anita Cemerlang, one of the few texts available in her hometown, Purwokerto, Central Java.
After finishing senior high school there, she moved to Bogor, West Java, for higher education at a secretarial academy.
Persuaded by neighbors, Faiza worked at a garment factory in between classes. She found out later that the factory and the condition of women laborers inside were to change her life.
“It was this episode that changed the way I saw life. At the factory, I came across new concepts I’d never known before,” Faiza said.
At the factory, she met thousands of women laborers — in previously unimaginable numbers — and the problems they faced.
Faiza also acquired a vocabulary of terms that had never crossed her mind before, like “labor”, “low wage” and “subordination”.
“For a village teenager, those words were a new concept for me,” she said.
That experience, plus interaction with labor activists made her much more critical. “It was like a virus had affected me. It eventually opened my eyes,” she said.
Then, she quit the factory and joined Solidaritas Perempuan, a nongovernmental organization in Jakarta that focuses on the empowerment of women.
She worked within the NGO sector for almost 12 years including six as head of Solidaritas Perempuan’s education and base organizing division and two years as program coordinator at Institut Ungu, an organization she cofounded that focuses on promoting women’s empowerment through cultural activities.
With Institut Ungu, Faiza organized April Festival, comprising cultural events, in 2003.
The same year, she moved with her Australian husband Max Lane to Perth because he became a research fellow at Murdoch University.
Used to activities back home, while in Perth, Faiza also built contacts with activists. There, she organized a festival of Indonesian films, an event that drew many visitors.
Lack of government support
Between 2004 and 2006, Faiza followed her husband to Sydney (Max Lane is a lecturer in Asian Studies at the University of Sydney.)
It was during this period that Faiza had the idea to put Pramoedya’s work on stage. After research, she decided to focus on Bumi Manusia and to highlight Nyai Ontosoroh.
Faiza had to squeeze Bumi Manusia (about 400 pages) to 60 pages of script. She also consulted with senior artists Slamet Raharjo and Jajang C. Noer to improve the script.
After it was finished, another challenge ensued. She had to find artists for the parts, plus money to finance the project.
“The government gave only a little help. Funding mostly came from nongovernmental organizations and foreign embassies,” she said.
(On government support, Faiza expressed deep concern. Theater directors, she said, have to submit an application at least one year beforehand to get financial support, which amounts to paltry sums.
In comparison, she said, the winner of last year’s Jakarta Theater Festival received only Rp 4 million, to be divided among crew members.
“The passion for people to develop theater is very high. But there is little support from the government,” she said.)
When eventually her team was ready to perform successfully, Faiza became excited.
Faiza said that she had never studied theater formally. She said she just loved it and watched many plays on different occasions.
“The reason why I decided to produce my own play is because I was often disappointed at the weaknesses in other plays I watched,” she said.
There were high expectations for a a play based on widely discussed novel Bumi Manusia. However, Faiza had her own tips for producing a strong play.
“The first thing I did is to understand the messages Pramoedya was trying to convey. I have to decide what I am going to convey. There are some important aspects but I have to choose one or two,” she said.
Fortunately, she had the support of crew members including director Wawan Sofwan from Bandung, West Java.
Born in a family of 10 children (six boys and four girls), Faiza got used to conventional values in which women are subordinated by men.
Her brothers often told her to do domestic work rather than do it themselves. Every time she protested, her mother would calm her down and tell her to just get on with it.
“There was different treatment for boys and girls,” she added.
These traditional values often make her uneasy anytime she visits her hometown. Her parents, grandparents and relatives ask her why she does not have children.
“They keep on asking me the same question as if a married woman without kids were abnormal. For me, whether a couple will have kids or not is all about life choices,” she said.
The country girl has a view on how to empower women. She has become a scriptwriter and a producer too. Will she keep on moving along the same path?
“I’ll write a book about the processes involved in the Nyai Ontosoroh project. I also have in mind some ideas for plays.”
“I’ll do something that I have passion for. I think I have great passion for theater,” she said.
August 27th, 2007
Workers stage rally after closure of factory
Bangkok Post, Thailand
More than 200 workers of the Inter Buda garment factory in Pathum Thani yesterday staged a rally in front of the plant after the employer shut down the factory without prior notice.
Anant Ngern-tapaeng, who led the protest, said workers were told that no more export orders would come in for some time. ”However, we did not know before that the factory had financial problems,” he said.
According to Mr Anant, managers removed some machinery from the factory compound on Saturday night.
The closure will affect more than 300 factory workers, he said.
August 27th, 2007
Results Of California EEEC Enforcement In Garment Industry Announced
WorkersCompensation.com (press release), Florida
Los Angeles, CA (CompNewsNetwork) - Investigators with the Economic and Employment Enforcement Coalition (EEEC) recently targeted businesses in the garment industry that were operating illegally. The businesses visited were in Los Angeles and Riverside Counties.
EEEC is a multi-agency task force designed to root out California’s underground economy. In a recent enforcement sweep of garment manufacturers, the EEEC targeted businesses that avoid labor, tax and licensing laws, safety and health regulations and carry no workers’ compensation insurance for their employees.
“In California, workers have workplace protections and it is our job to make sure labor laws are not violated,†said EEEC Executive Director David Dorame. “At the same time, we owe it to responsible employers to vigorously enforce against those who do not comply with California labor laws, thereby, gaining an unfair economic advantage by not following the rules.â€
The results of the sweep are as follows:
Number of inspections 32
Number of citations issued 49
Total citation amount $232,900
Citations issued for. no workers’ compensation, not taking required payroll deductions,
underpayment of overtime and minimum wage, not having a proper work permit for a minor and not having the proper garment registrations.
Launched in July’05 with the full support of Governor Arnold Schwarzenegger, the EEEC was formed with a dual mission: To enforce California labor laws; and to educate business owners and workers on those laws and regulations. On the enforcement side, the EEEC aims to root out businesses participating in the underground economy, which cost the state and legitimate businesses millions each year, in many cases passing the cost on to the consumer. In addition, EEEC helps educate business owners on California’s employment laws and their responsibilities, and educates employees on their rights as workers.
EEEC is a collaboration of the Labor and Workforce Development Agency’s Department of Industrial Relations (Division of Occupational Safety and Health; Division of Labor Standards Enforcement) and the Employment Development Department. The U.S. Department of Labor participates in the EEEC, as well as the Contractors State License Board when targeting the construction industry.
The EEEC conducts enforcement sweeps in various industries, including garment, agriculture, construction, horse race track, car wash, janitorial and restaurant, which have been identified as having a high degree of workplace violations and lack of regulatory compliance. EEEC also holds workshops throughout the state to educate employers and workers on labor and wage issues. For more information on the EEEC, please visit our website at http://www.dir.ca.gov/default.html.
August 24th, 2007
Blackstone to acquire garment manufacturer in India
AltAssets
The Blackstone Group has agreed to acquire a 50.1 per cent stake in Gokaldas Exports, an India-based garment manufacturer and exporter.
In line with SEBI regulations, this transaction triggers an open offer by Blackstone to the public shareholders of Gokaldas for an additional 20 per cent of the company’s outstanding shares.
Subject to regulatory approvals, Blackstone would invest approximately $165m, including the open offer, and have representation on the board of directors.
Akhil Gupta, chairman and managing director, Blackstone Advisors India, said, ‘Gokaldas is the leading company in India in an industry that has seen significant growth in the Asian region post the elimination of the garment quota regime in 2005. This favourable industry dynamic combined with our highest regard for the management team of Gokaldas Exports were key factors in our decision to enter into this partnership.’
Blackstone’s alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
Copyright © 2007 AltAssets
August 23rd, 2007
Vietnam’s garment export to surge this year
People’s Daily Online, China
Fueled by the stronger export growth in the first seven months of this year, Vietnam is likely to realize its annualized target of selling overseas 7.5 billion U.S. dollars worth of garments and textiles.
Vietnam, reaping garment export turnovers of over 5.8 billion dollars last year, shipped abroad textiles and garments worth more than 4.2 billion dollars in the first seven months, a year-on-year surge of 28.6 percent, according to the Vietnam Textile and Apparel Association on Tuesday.
The association has encouraged local garment enterprises to further explore traditional markets such as the United States, the European Union, and Japan, and seek more new ones. It has also urged them to focus on building trademarks, strengthening trade promotion, increasing products’ quality and improving design, marketing and management.
Source: Xinhua
August 22nd, 2007
Consolidation for garment companies?
Economic Times, India
BANGALORE: This will go down as the mother of all deals in India’s garment industry. Although the size of the deal (Rs 682.1 crore, assuming the entire 20% open offer goes through) is not large, it is a watershed event, nonetheless.
The buyout of Gokaldas Exports by Blackstone comes close on the heels of the $38-million buyout of Leela Scottish Lace’s garment business by Bombay Rayon Fashions.
So, is the industry readying for a wave of consolidation? Scale is clearly one factor. “We believe the industry has enormous potential. Close to $50 billion of orders would flow in from high-cost centres to low-cost centres like India and China and we believe that players like Gokaldas Exports are well-positioned,†says Mr Akhil Gupta, CMD of Blackstone Advisory India.
The industry also appears to be veering around this view. “For our scale of exports ($8.2 billion), there has to be consolidation, we have one too many companies,†says an analyst. Global competition is another factor. Take the case of Bangladesh which has export earnings of about $6 billion and is seen to give India a run for marketshare.
At last count, there were over 50 companies, though most of them have revenues between Rs 50-100 crore and don’t have the scale or size to be globally competitive. There is bound to be another wave of consolidation with small players expected to sell out.
Analysts say that buyers in the US and Europe are looking at dealing with a handful of players. Garment exports to US have dropped by 10% over the last 12 months in value terms and the Indian industry has not made much headway in Europe. Further, with the rupee appreciating and businesses operating on single digit margins, the industry is facing very challenging times.
On the other hand, the Indian garment industry also did not really scale up its operations and even a large player like Gokaldas Exports did not venture too far. Further, the industry was stymied a bit by the tight labour laws and was seeking reforms.
Analysts also say that with the opening of the economy, newer opportunities are available seeing the possible migration of “investments†into these sectors. “If sell-out happens, it could also indicate that current promoters may not be too willing to commit more investments,†says a Mumbai-based exporter.
That the industry would have to face the winds of competition got well established when the world moved into a “quota-free†era effective January 1, 2005. Recently, the ride has become bumpier, with the rupee appreciating over 9% during the first quarter (Q1) ended June 30, 2007 with Gokaldas Exports itself reporting a 22.13% year-on-year drop in net profit.
But the industry has a word of praise for the Hinduja brothers  clearly the pioneers in the “outsourcing†business, something about which India is extremely proud of. “All of us have been entrepreneurs and have built these enterprises. The apparel exports business is the creation of our hard-work, effort and vision,†says Mr Sudhir Dhingra, CMD of Delhi-based Orient Craft.
August 21st, 2007
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