Archive for December, 2007
Not ready for the sunset
Bangkok Post, Thailand
Thai garment exports, once dismissed as a ‘’sunset” industry, may rise 10% in 2008 thanks to greater demand from China, Japan and the European Union, according to Dej Pathanasethpong, the president of the Thai Garment Manufacturers Association. Chinese manufacturers were increasingly focusing on its massive domestic market, thanks to greater spending by Chinese consumers, he said.
The 2008 Olympics in Beijing were also expected to draw attention from Chinese producers, giving opportunities for Thai exporters.
”With less competition, we believe that Thai garment exports should increase in 2008,” Mr Dej said.
Rising production costs in Europe, meanwhile, could also benefit local producers as demand picks up in the region thanks to strong economic growth, particularly in East Europe. The strength of the euro against other major currencies also means that imported goods are cheaper than European goods.
Mr Dej said China commanded around 34% of world garment production, with Europe accounting for another 25%.
Thailand ranks only 13th in terms of world garment exports, with a market share of 1.8%. Exports this year are expected to rise about 4% to 5% from last year’s value of $3.5 billion. Garments and textile exports are projected to hit more than $7 billion this year, with textile exports set to rise by 10%. Interregional trade should be particularly strong thanks to the Asean Free Trade Agreement.
Mr Dej said the strong baht and labour constraints, particularly the lack of skilled workers, would be key challenges for Thai producers.
A number of Thai exporters faced trouble filling large orders, prompting foreign manufacturers to increasingly turn to Laos, Cambodia and Vietnam, he said.
Neighbouring countries also benefited from favourable tariffs from the European Union and US. But Mr Dej said he believed Thai producers were making strides in moving up the value chain.
”The market still has room for growth, and Thailand’s garment industry is not facing the sunset. Actually, our production costs aren’t significantly higher than China or other regional competitors. At the end of the day, your competitive edge depends on your management ability,” he said.
The quality of Thai garments in general was superior to Chinese goods, Mr Dej insisted. They comprise 80% local raw materials and fabrics that meet European standards for chemical residue.
”Chinese products are increasingly facing problems in meeting quality standards. It’s an opportunity for us to grow.”
Thai producers competed well in segments such as children’s wear, underwear, sportswear and fashion garments.
Mr Dej said sportswear in particular was a Thai strength, with a number of world-class brands basing their production in the country and taking advantage of a diversified supporting industrial base that could continuously develop new fabrics and materials.
”Thai products are accepted as high quality, although prices might be higher than our competitors,” he said.
He said exporters should see new opportunities in Japan, with growth expected to jump sharply in 2008 thanks to favourable tariffs under the Japan-Thai Economic Partnership Agreement.
The closure in 2007 of factories such as Thai Silp South East Asia Import Export, Rangsit Footwear and Union Footwear were not necessarily indications of an industry-wide turn for the worse, he insisted.
”Yes, we saw some factory closings such as Thai Silp. There are around 2,000 garment factories in the country, and we could see some smaller producers merge and consolidate,” Mr Dej said, adding that demand for skilled labour remains strong.
For 2008, TGMA’s main concerns remained the value of the baht, domestic political stability and the possibility of a global economic downturn.
The US accounts for half of Thai garment exports, compared with 27% for the EU, 6% for Japan and 1% for China.
December 28th, 2007
China becomes Argentina’s top source of garment imports
Xinhua, China
BUENOS AIRES, Dec. 24 (Xinhua) — China has replaced Brazil as Argentina’s largest source of garment imports this year, accordingto a report issued by Argentina’s Industry Economy Institute on Monday.
Quoting figures released by Argentine Customs, the report said Chinese clothing products have captured a growing share in Argentina’s import market, rising to this year’s 34.1 percent from11.3 percent in 2005 and 17.5 percent last year.
In comparison, the share of imports of Brazilian garments dropped to 16.2 percent this year from 27.2 percent in 2005.
The market share of China’s clothing products in Argentina has been growing steadily due to their competitive prices and the improved quality of the products, according to the report. Enditem
Editor: Du Guodong
December 26th, 2007
Garment industry to profit from Japan pact
YUTHANA PRAIWAN
Bangkok Post, Thailand
Textile and garment exports next year are projected to rise by 8%, thanks to higher demand helped by the new Thailand-Japan free trade agreement.
The Office of Industrial Economics (OIE) and the Thai Textile Institute (THTI) expect export sales next year to reach US$7.68 billion.
Atchaka Brimble, the director-general of the OIE, said exports would grow due largely to the Thai-Japanese pact that came into effect last month. The agreement would eliminate Japanese tariffs that currently range from 2.5% to 13.4%.
Ms Atchaka also hopes to see demand in Southeast Asia drive the Thai textile and garment sector.
The OIE expects the sector’s exports will reach $7.68 billion, with $3.98 billion from raw materials, up 10% from 2007. The remaining $3.7 billion would from garments, up 6.6% from 2007.
She forecast that exports to Japan next year would jump from $410 million to $1.6 billion. Thailand’s total market share in Japan is 5-10%.
Japan next year expects to import $32.05 billion worth of textiles and garments from the global market, up from an estimated $30.52 billion this year _ a 5% increase.
The total export value of Thai textiles and garments to Japan dropped from $429.7 million in 2004 to $412.5 million 2005 and $415 million in 2006. In the first 10 months of this year, exports declined to $308.8 million _ an 8.64% drop year-on-year.
In 2008, the Japan-Thailand Economic Partnership Agreement (JTEPA) is expected to help exports rebound.The JTEPA would also enhance Thai products’ competitiveness against those from Bangladesh, Cambodia, China, India and Vietnam.
However, only medium- to high-end products would survive in the tough textile and garment market where countries with cheap labour enjoy cost advantages.
In January 2008, Japanese garment traders are scheduled to visit Thai garment factories to sign supply contracts.
Last year, Thailand exported $775.7 million worth of garments to Asean out of a total of $13.53 billion.
December 21st, 2007
Garment workers ransack factory for Eid bonus, arrears in Gazipur
The New Nation, Bangladesh
UNB, Gazipur
Garment Workers ransacked a factory and set fire to it at Shafipur in Kaliakoir upazila Monday evening demanding their Eid bonus and arrears.
Sources said as the workers of Karnic Knit Composite Factory didn’t get their Eid bonus and arrears they ransacked the factory and set fire to it.
The firefighters from Savar and Gazipur fire service put out the blaze after hour-long frantic efforts.
Sources said huge yarn and machinery were burned in the fire.
December 19th, 2007
Disrobing The Economy in Nepal
Media For Freedom, Nepal
Disrobing The Economy in Nepal
Once a shining sector of Nepal’s booming export regime, the garment industry has taken a severe beating in the past few years. The downfall of the garment industry that happened in the wake of quota phase out with the expiration of Multi Fiber Agreement (MFA) in January, 2005, has now taken a big toll on the industry. Over 90 percent of the factories have pulled down their shutters unable to survive in the cutthroat competition at the international level and rapidly deteriorating politico-economic situation back home.
Labor unrest, continuous strikes, lack of government efforts to revive the sector – all worked to the disadvantage of the industry. In a matter of few years, the industry has come down to its knees. It might be too late to revive the sector amid indifferent attitude demonstrated by the government. Its downfall, however, has led to the situation where tens of thousands of people had to lose their bread and butter
By SANJAYA DHAKAL
The story of Udaya Raj Pandey speaks volumes about the crest and trough through which the garment industry of Nepal had to pass through in the last few years.
A garment entrepreneur since last many years, Pandey’s fortune had taken a dramatic rise during the time when garment was a booming business. From a modest factory in Battisputali, this young entrepreneur built a sprawling garment complex called Serene Garments at Kappan on the north-eastern part of the capital valley.
However, in a matter of three years, Pandey lost the battle against internationally and domestically deteriorating environment
And now this vivacious general secretary of Garment Association of Nepal (GAN) has closed down his factory. “I had to sell off the Kappan factory to pay back the loans of banks. The building has now been taken over by a college,†said Pandey.
He, himself, is still clinging to the garment business so as not to lose the client (importer) base. “I even went to India to fulfill my orders from there,†he said.
“Things came to such a pass that at times we had to airlift the garments to supply them on time for the importers. Some of the importers – after seeing our situation – themselves decided not to place order with us as we were making huge losses in airlifting them,†he added.
Another story that further exposes the pathetic situation of the industry is the building complex of GAN itself. Built two years ago by members by investing millions of rupees, the GAN complex at Naya Baneshwor is a swanky structure by Nepali standard. But, of late, as the industry lost its base and member entrepreneurs started abandoning the sector, the GAN is compelled to lease out its ground floor to raise resources to cover its day-to-day administrative operation costs.
Quote Phase Out And Aftermath
After the Nepali garment industry lost the preferential treatment in its largest market – the United States – in 2005, the government officials and policy-makers failed to provide it with necessary assurances.
“In fact, since then the policy-makers started becoming negative about garment industry. They had concluded that this industry was a goner,†Pandey said.
Although the industry did not immediately die after the MFA expiration, the subsequent years witnessed rapid political destabilization and unrest in the country, which threw the industry’s import schedule and timetable off the track.
Even after the initiation of peace process in April, 2006, this industry was plagued by industrial unrest as the Maoists found the workers’ base in the industry as a fertile ground to recruit their cadres. They advanced revolutionary slogans and attractive slogans to incite the workers, which led to the ultimate collapse of the industry itself.
Rapid Fall
Till a few years ago there were 225 garment factories in the country with over Rs 6 billion of investment.
But now, Pandey says, only around seven to eight of them are functioning. “Many businessmen have shut down their factories. Some became bankrupt while others turned to other businesses,†he said.
The garment industry used to provide direct and indirect employment to over 100,000 people in 2000. But now merely 10 to 15 thousand are employed by this sector.
More importantly, the garment sector used to provide jobs to illiterate and otherwise backward people – mostly women – since it needed little extra skills. As such, the downfall in this industry has affected this vulnerable section the most.
Seven years ago, the garment industry used to export readymade garment worth $170 to $180 million annually. This has now come down to less than $40 million.
Govt Response
A member of National Planning Commission (NPC) Dr. Pushpa Raj Rajkarnicar, who looks after the industry sector, said that the government does not currently have a specific policy to deal with garment.
“We don’t have such specific policy to cater to the garment sector alone. But we are, indeed, planning to revive the overall industrial sector of the country,†Dr. Rajkarnicar said.
Even as the garment entrepreneurs have been continuously urging the government to take initiatives to ensure preferential market access from the United States government, nothing has materialized in this direction as yet.
Since over 80 percent of Nepal’s garment exports are headed to the US market, enjoying preferential access there would mean a lot for the entrepreneurs. They have been demanding such access in the wake of preferential trade bill signed by the US government with Caribbean countries and some African nations.
Although at one time Nepal had lobbied along with Bangladesh seeking a trade bill providing preferential access to garments from Least Developed Countries, the efforts have not met with any success.
After the phase out of quota, countries like India, China, Vietnam and even Bangladesh have been doing well in the garment sector. However, Nepal has lagged behind. Things have come to such a pass now that the entire industry is on the verge of collapse.
Some policy makers indicate that since garment is not a sector with comparative advantage for Nepal, there should not be much attention towards developing it. They contend that since Nepal does not have forward and backward linkages required to sustain this industry, the country should go for sectors such as hydropower, tourism and agro products where it enjoys comparative advantages.
However, at a time when the country has been unable to provide job opportunities to its people, revival of the garment industry would create immense opportunities, particularly for the unskilled youths and women. When hundreds of Nepali youths are leaving for overseas employment everyday, this sector could have at least provided job opportunities to some of them within the country itself, say economists.
Source:http://www.nepalnews.com/contents/2007/englishweekly/spotlight/dec/dec14/coverstory.php
December 18th, 2007
Tailor designs 38-feet-long underwear
Daily Times, Pakistan
AV Giri, a resident of Jaypur town in the southern district of Koraput, demonstrated the garment in his hometown.
Giri claimed the garment, which is 115 feet wide, was made with 450 meters of cloth in five days. The underwear cost Rs 40,000 with local residents chipping in, said Giri, who runs a tailoring shop at his home town.
Giri created the underwear using his sewing machine. He has informed the officials of the Guinness Book of World Records and hopes to find a place in their upcoming book. In 2001, he had created a record by constantly operating his sewing machine for nine hours 25 minutes, the report said. ians
December 17th, 2007
Garment, footwear firms win awards for social responsibility
Viet Nam News, Vietnam
(15-12-2007)
HA NOI — Twelve garment and footwear companies were honoured at an awards ceremony on Thursday in Ha Noi for their social responsibility and out standing contributions to the business world over the course of 2007.
The winners were: Ha Noi Textile and Garment Corp with first prize, Phong Phu Corp and Dong Nai Dong Phuong Ltd Co with second place prizes, Viet Tien Garment Export and Import Corp, Song Hong Garment SJC and Long An Garment Export JSC with third place prizes.
The companies won based on their socially responsible business practices, said Ha Noi Textile and Garment Corp deputy general director Le Thi Huong Mai at the awards ceremony.
The Corporate Social Responsibility awards aims to encourage garment and footwear companies to improve their public image, according to Nguyen Quang Vinh, deputy director of the Office for Sustainable Business Development under the Viet Nam Chamber of Commerce and Industry.
Enterprises selected for the awards met Viet Nam’s Labour Code requirements, posted strong business performance over the past three years, made important contributions to environmental protection, and created policies favourable towards employees and the community.
The awards, under the initiative of Action Aid Viet Nam, are co-sponsored by the ministries of Planning and Investment and Industry, the Chamber of Commerce and Industry, the Viet Nam Textile and Apparel Association, the General Confederation of Labour , the World Conservation Union and the International Labour Organisation. — VNS
December 17th, 2007
Batang UP is up there in competitive garment business
By Myrna Rodriguez-Co
Inquirer
Inquirer.net, Philippines
Last updated 09:03pm (Mla time) 12/16/2007
BATANG UP, he calls himself. He grew up inside the University of the Philippines campus, worked in UP, met his wife, Flor in UP, got married in UP, and is now managing his own flourishing garment business based in UP.
Mike Esteves was a grade schooler when he began dabbling in T-shirt printing as an assistant in his Kuya Reynaldo’s silk-screen printing business. He learned the trade fast because he was an artist at heart who saw T-shirts as a drawing paper or canvas of sorts.
At 15, he began experimenting with his own designs. He was also his kuya’s all around part-time errand and delivery boy, gamely boarding ikot jeepneys around the UP campus with bundles of T-shirts on his shoulders.
Even when he went to work at the UP Transportation Training Center as a draftsman, Mike still had half his mind on T-shirt design and printing.
In 1989, Mike resigned from his job to pursue his passion. He began his own home-based T-shirt printing business, starting with meager capital and only the most basic equipment — squeegees of various sizes and an exposure table.
In the way of most couples in business, it was decided Flor would keep on working at the UP Business Research Center while Mike tried his luck in the yet uncertain venture. If the business failed, they had Flor’s stable employment to fall back on.
Today, 18 years after they made the crucial decision, Mike’s Maroon Garments is now a full-fledged garment producer that has integrated its operations to include sewing, design, printing, wholesaling and retailing.
In 1993, they finally acquired an outlet at the UP Shopping Center known as Maroons Boutique and Novelty Shop. By then, too, the business has become stable enough to enable Flor to resign her job and handle the company’s accounting and finance requirements.
Their property in Quezon City now combines three distinct units: a garment factory, a printing shop, and the family residence.
The business employs 10-12 workers at a time, has seven sewing machines, and a cutting machine. At the printing department, designing has been computerized although the printing itself still employs the traditional manual process using squeegee sets and exposure tables.
Capacity has gone up to 500 to 1,000 T-shirts a day in the printing unit, depending on the complexity of the design. At the sewing department, up to 300 pieces of assorted garments can be produced daily.
The market has also grown to include universities and schools around the Diliman area as well as various student organizations and private businesses needing promotional giveaways.
Last year, SM began placing orders of T-shirts with Pinoy designs for Kultura, the department store chain’s Filipiniana boutique.
This year, Maroon Garments became the first licensed producer and seller of UP T-shirts, jackets, shorts, pants and other paraphernalia including mugs, caps, stickers, bags, umbrellas and gift bags. The company projected a minimum output of P2.6 million worth of goods a year.
There are advantages to a UP license, says Mike. All colleges and units of the university are now Maroon Garments’ official market. The Institute for Small-Scale Industries has offered free counseling to improve its work processes. The administration helps promote and market its products. With the upcoming centennial celebration next year, Mike expects a peak year for sales.
There are disadvantages, too — as unauthorized manufacturing and selling of UP paraphernalia have gone on. Because most of them are informal and do not pay license fees and taxes, competitors can afford to offer lower prices.
Flor laments that they have been treated unfairly by the BIR in its recent city mapping operations. “At first, we were complimented for being good taxpayers, which we are. Later, they questioned a technicality — that we failed to note down customers’ addresses in the official receipts.†Their business is being penalized for this oversight.
Despite setbacks, Maroon Garments remains unfazed. It has a competitive edge after all. With its integrated operations, Mike and Flor can control quality, price, and delivery schedules.
Copyright 2007 Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
December 17th, 2007
Local garment accessory industry meets 80pc demand
Refayet Ullah Mirdha
The Daily Star, Bangladesh
Around 80 percent demand for accessories used in exportable garment and knit items are now locally met as more than 100 accessory manufacturing industries have so far sprang up in the country, according to industry insiders.
They said on expansion of readymade garments (RMG) and knitwear markets overseas since 1990, such accessory factories have been thriving with over 20 percent growth per annum.
“Previously, Bangladesh was totally dependent on import of this intermediary item for using in RMG and knit products,” said an exporter, adding that then the local businessmen’s main source of such items was Hong Kong.
RMG makers said the demand for accessories has been on the rise because they have resorted to transfer of production to value added items in order to sustain global competition.
The contribution of accessories in exports of garment and knit items is more than 10 percent meaning US$1.0 billion per year, according to S A Nasir, a local garment buyer.
He said excepting those of buyers’ choice, the local producers of accessories supply cartoon, zippers, button, pocketing fabrics, hangtag sewing thread to the garment and knit manufacturers from their industrial units.
Nasir, however, pointed out that the local industries have yet failed to manufacture some costly accessories like ornamental stones, belt and clips for using those in brand exportable garment items, which are now being imported mainly from Hong Kong.
When asked about spring up of accessory industries here, a senior official of Dekko Group, one of the largest local manufacturers of accessories, said entrepreneurs come forward with huge investment as establishment costs for such units are comparatively low.
An entrepreneur can set up a full fledged accessories industry in Bangladesh at a cost of Tk 40 crore, whereas more than Tk 1billion is required for setting up even a small textile mill or woven factory, he said.
According to him, at present, more than 100 factories are in operation in Bangladesh to produce and supply of accessories to the garment manufacturers.
He said a little quantity of accessories are being exported to China, India and Vietnam.
December 13th, 2007
Garment firm Oracle forays into retail
Economic Times, India
CHANDIGARH: Lifestyle garment manufacturer, Oracle today said it is planning to set up a garment retail chain, entailing an investment of Rs 10 crore by March 2008.
“We are planning to open about 10-12 outlets, which would showcase our entire range of garments,” Oracle Managing Director Sanjeev Singla told reporters here today.
The company would initially start its operations from northern region and gradually move to other states, he said.<--more-->
Presently, Oracle is selling its garments through franchise outlets in several states including Punjab, Jammu and Kashmir, Haryana, NCR, Himachal Pradesh, Uttar Pradesh, Bihar, Jharkhand, Delhi and West Bengal.
The company is in talks with several foreign-based clothing retailers for manufacturing garments under their brands.
It would also extend its product portfolio in order to offer wide range of garments at their outlets, Singla said.
“Presently, we manufacture winter wears such as jackets, pullovers, coats, formal wear for both men and women. We have now decided to manufacture jeans and trousers too,” Singla said.
The Ludhiana-based company, which did a business of Rs 15 crore last fiscal, targets to achieve a turnover of Rs 25 crore by March 2009.
December 12th, 2007
Previous Posts