01 January 2021, Mumbai:

Bangladesh and Thailand are near neighbors, connected by the Bay of Bengal. The development of these maritime ties would benefit both countries in terms of trade, investment, and regional communications. 

The two countries are in talks to sign a free trade agreement (FTA) to boost trade and investment. Bangladesh is geographically positioned as a gateway between ASEAN and SAARC with potential access to both for each other’s export-driven manufacturers.

ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam, while SAARC includes Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. 

The Chittagong seaport is the main seaport in Bangladesh. 90 percent of Bangladeshi trade is conducted through the Chattagram Port Terminal, with the rest being taken up by Bangladesh’s Ports at Mangla and Payra.    

Thailand’s Ranong Port is situated on the Kraburi River of the Kra Peninsula, across from Myanmar and on the Indian Ocean, coast and lies 1,220km from Chittagong. 

Thailand’s Southern Economic Corridor project, approved by the Government in August 2018, emphasizes the development of Ranong port as a gateway to trade with Bangladesh, India, Myanmar, and Sri Lanka. Using Ranong port for trade with Bangladesh’s Chittagong, Payra, and Mangla ports will reduce the distance between the two countries and boost trade. Then this connectivity can then be extended to India’s Kolkata, Chennai, and Mumbai ports. 

The launch of direct shipping services between Chittagong and Ranong ports has received a new push as trade between the two countries is increasing.

Bilateral trade between Bangladesh and Thailand reached US$837.08 million in 2019-20. Bangladesh’s total exports to Thailand in 2020 were US$35.46 million while imports from Thailand were worth US$801.3 million, very much in Thailand’s favor. 

Bangladeshi exports to Thailand are on an upward trend, however. This year exported values are expected to reach just under US$40 million, a 12 percent increase YoY. 

According to FDI stock data in Bangladesh, Thailand is the 15th largest investor in the country. This however would increase significantly if an FTA can be agreed upon, and the two countries build direct maritime connectivity between Chittagong and Ranong ports. 

There is precedent. When Bangladesh signed FTA with the SAARC members in 2006, its imports and exports doubled within ten years, being a relatively constant (there was a dip in 2011) and sustainable 10% GDP growth in trade per annum. 

In terms of commodities, Thailand mainly exports cement, cereals, plastics, man-made staple fibers, sugar and sugar confectionery, machinery and mechanical equipment, cotton and cotton cloth, salt, sulfur, clay, stone, and mineral fuels to Bangladesh. 

In the reverse direction, Bangladesh exports garments, vegetables, textile fibers, garments, animal products, electrical and electronic equipment, frozen fish, and crustaceans to Thailand. 

Direct sea connectivity between Chittagong and Ranang can be expected to play an important role in expanding trade and commerce between the two countries.

The time and cost of transporting goods between them can be reduced by 30 percent and are likely to play a key role in building ties with other Southeast Asian countries, including Myanmar and India. The introduction of direct shipping between the two countries will encourage traders from both to expand their regional trade and investment.

Thailand could increase trade ties with India, Bangladesh, and Sri Lanka under the framework of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

ASEAN BRIEFING  

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31 December 2021, Mumbai:

Bangladesh  Garment  Manufacturers  and  Exporters  Association  (BGMEA)  on Thursday  urged the commerce ministry  to  simplify  export  procedures  for  the  RMG  sector  to  help  address current challenges.

The  request  was  made  when  a  delegation  of  BGMEA  led  by  its President  Faruque  Hassan  met  Commerce  Minister  Tipu  Munshi at  the latter's  secretariat  office in the city, according to a statement.

The  delegation  included  BGMEA  vice presidents Syed  Nazrul  Islam,  Shahidullah  Azim,  Khandoker  Rafiqul  Islam,  Md  Nasir Uddin, Miran  Ali, Rakibul  Alam  Chowdhury  and  Director  Asif Ashraf. 

They  apprised  the  minister  about  the  problems  prevalent in  the  apparel  sector  and requested  steps  from  the  government  to  resolve  them, added the statement.

BGMEA  President Mr Hassan  said  while  the  RMG  industry  is  in  the  course  of  recovering from  the  massive  impacts  of  the  Covid-19  pandemic,  the  Omicron  variant  is  creating  fresh concerns  among  the  exporters  and  posing  new challenges  to  the  sector. 

“We  need  to  safeguard  the garment  industry  in  difficult situations  since  it  serves as  the mainstay of  Bangladesh’s  economy," he noted.

Government’s  support  is  crucial  to  help  the  industry  thrive even  in  tough  situations, he added.

Expressing gratitude, he said  the  government's supports helped  the  apparel  sector  to survive  in  the  first  wave  of  the  Covid-19  pandemic  and  turn  around.

Earlier, on Wednesday at an event the sector leaders demanded supports from the government to address the possible challenges due to the spread of new corona varient--Omicron in the major western markets.

They also sought commerce minister's intervention saying they are being harassed by NBR.

FINANCIAL EXPRESS 

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The Chinese market has seen dynamic changes in 2021.

An organic revolution is in progress in the nation’s apparel industry, from the pursuit of speed and scale to a balance between quality and efficiency.

Apparel companies focused on the Chinese market are shifting to a new track: from traditional firms to “evangelists” that are complicit with consumers in the concept of sustainable fashion under a green production chain.

At the same time, representatives of industry organizations such as CNTAC are gathering fashion industry leaders with over $47.1 billion in revenues to lead the trillion-dollar value market in climate action.

Eighteen leading brands and 40 top manufacturing companies have committed to setting targets for peak carbon emissions and carbon neutrality, publishing action plans and roadmaps, and carrying out regular carbon information disclosures.

The Chinese textile industry took action to embrace globalization over the past four decades. From OEM production to self-owned brands, it has completed successive fashion metamorphoses.

With insight into the women’s apparel market in the U.S., the successes of cross-border e-commerce represented by companies like Shein over the past decade have proven the ability of the Chinese fashion industry to compete on a global scale.

Over the next decade, during which the goal of 2030 peak carbon emissions is expected to be achieved, will Chinese apparel companies be able to leverage on their carbon-neutral vision and strategy to truly develop better collaboration in areas such as research and development, pattern-searching, technological and product innovation, commercialization and talent training?

Is China really “holding the key to global solutions for sustainable fashion,” as Cai Jinqing, president of Kering Greater China, has claimed, thus opening new horizons for China to lead?

How will China drive industrial synergies for a trillion-dollar value industry?

As the world’s second-largest economy and a significant global leader, China is now the world’s largest consumer market for fashion brands and the largest fashion manufacturing country, playing a key role on both the industrial and consumer ends of the global sector.

According to the 2021 China Innovation and Entrepreneurship Ecological Development Blue Paper, the transition toward zero-carbon energy in China will create a huge investment market that will reach nearly $2.4 trillion by 2050 and contribute 80 percent of the cumulative emission reduction toward the country’s zero-carbon goal.

The apparel sector, an important pillar of the fashion industry, will drive a trillion-dollar market value synergy under the concept of carbon neutrality.

In this regard, the national organization of the textile and apparel industry — CNTAC — serves as the bridge between upstream and downstream enterprises and organizations across the industry. In 2017, CNTAC launched the Climate Innovation 2030 Initiative and in 2019, it launched the Climate Special Fund for Fashion Industry to fund the development projects of future sustainable fashion designers in China.

Encompassing 30 key brands and 60 manufacturing firms in the country’s textile and apparel industry, the 3060 Net Zero Accelerating Plan was launched in 2021, emphasizing the implementation of carbon reduction and climate strategies as well as collaborative industry governance.

Six months after its launch, 12 of the brands that participated in the 3060 Net Zero Accelerating Plan have carried out life-cycle carbon footprint measurements on 22 products, covering five categories of raw materials, including cotton, polyester, spandex, silk and recycled cellulose fibers.

Data gained are supplementing the database on the environmental impact of textile materials and manufacturing processes.

There is no shortage of international action and initiatives on sustainable fashion, echoing China’s drive toward carbon neutrality. The difference is that Chinese firms are taking steps throughout the entire value chain — a supply chain synergy based on a perspective across the whole life cycle of a product and having a resonance with consumers.

It aims to demonstrate the contribution products make in driving low carbon consumption by promoting a credible global supply chain carbon footprint label, establishing a market incentive mechanism to support upstream and downstream companies, and thereby rapidly achieving sustainable production and consumption.

With the goal of a 55 percent cut in carbon emissions under a 1.5°C planet-warming scenario, the trillion-dollar global value industry chain is coordinating its strategies.

The unparalleled leveraging power behind sustainable fashion

“Carbon neutrality,” a term that’s been given extraordinary meaning since its inception, is considered by many as a disruption, a transformation, and an upgrading.

In the Chinese textile and apparel industry, each company has a unique presence in the market and is able to pursue its own strategies to achieve carbon neutrality. Many of the leading apparel companies in China are involved in the implementation of carbon neutrality.

For example, as the first step in its carbon-neutral strategy initiative, Peacebird is using the first product made from 100 percent Xinjiang cotton with a carbon footprint measurement across the entire supply chain. The Peacebird 25th-anniversary T-shirt has a hangtag with a QR code that allows real-time access to carbon footprint information.

wwd.com 

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The Goods and Services Tax (GST) Council resolved on Friday, at its 46th meeting, to postpone the proposed increase in the textiles sector's tax rate from 5% to 12%, which was set to take effect on January 1. 

The GST rate for textiles will remain unchanged for the time being, with a ministerial panel reviewing the rate structure by February, Finance Minister Nirmala Sitharaman said after the meeting.

"Beginning in December, representations began to arrive, and on December 29, a letter from the Gujarat FM arrived, prompting the emergency meeting." 

"The emergency Council meeting today decided to keep the status quo and not go to 12%, from 5%, which means we won't perform the correction now in the case of textiles," she explained.

When the taxes on output or finished product are lower than the taxes on inputs, an inverted duty structure results, resulting in an inverse buildup of the input tax credit, which must be returned in most situations.

The government has been forced to rethink the duty structure due to the inverted duty structure, which has resulted in a stream of revenue loss. To remedy the inverted duty structure, the GST Council suggested certain rate changes for footwear and textiles during its 45th meeting in September.

The meeting on Friday was conducted to examine one item on the agenda: rate revisions in the textiles industry.

The Finance Ministry announced a standard 12% rate for manmade fibre, yarn, textiles, and apparels in November, as well as a 12% uniform rate for footwear.

The rate increase was announced to take effect on January 1st. At the moment, the tax rates for manmade fibre, yarn, and fabrics are 18%, 12%, and 5%, respectively.

The proposed rate hike for textiles from 5% to 12% has raised concerns among many states and industry organisations. Amit Mitra, the West Bengal Chief Minister's Principal Chief Advisor, urged Union Finance Minister Nirmala Sitharaman to reverse the proposed raise last week.

He predicted that the new tariff structure will result in the closure of 1 lakh textile firms and the loss of 15 lakh jobs across the country. KT Rama Rao, the Telangana Industries Minister, has also requested the Centre to drop the proposed GST rate hike.

Gujarat wrote to the Union Finance Minister, expressing concern that the decision to raise the GST rate on textiles from 5% to 12% will affect a large number of taxpayers in the textile industry. The textile industry has warned that such a decision might have a detrimental impact, resulting in a decline in demand and recession, according to the state. Sitharaman stated that the industry felt "there could be a temptation not to come into the formalised system and the immediate pressure to be in the realm of the informal segment of the business" while making its representation, adding that it was also felt that burdening the lower end of the buyers was not the intention. She went on to say that every state minister is on board with fixing the inverted duty system. She went on to say that the ministerial panel, which is already looking into rate rationalisation, will now look into the textiles sector as well, and that the Council will likely discuss the group's proposals in late February or early March.

As per the recently published OTEXA data the FTA nations export an annual 28.30% growth. Showing that FTAs have been an important substance in increasing exports of LDCs or the purchasing country’s preferred trade partners, specifically in USA’s case which is the major apparel importing nation.

Among the FTA nations export, the Dominican Republic and Central America exported around $5.37 billion in US import values under the CAFTA-DR agreement from January to October 2021, as against $4.03 billion compared to the same period last year.

While Mexico exported $2.30 billion worth of apparel in the period.

Canada’s apparel export to the USA under FTA worth $0.381 billion,

Among Latin American nations Peru exported $0.573 billion worth of apparel to the USA under FTA, while Colombia exported $0.198 billion and Chile exported $0.04 billion in January to October 2021 period.

OTEXA data also showed that other major FTA destinations like Israel, Jordan and South Korea jointly exported $1.32 billion.

TEXTILE TODAY

31 December 2021, Mumbai:

North American specialty retailer The Children’s Place reported net sales growth of 31.2 per cent to reach $558.2 million in the third quarter of fiscal 2021 from $425.6 million in Q3 FY20. This growth was primarily driven by strong customer response to company’s product assortment and the strategic reset of its pricing and promotions.

Gross profit increased by $98.7 million to $244.8 million in the reporting quarter compared to $146.1 million in the previous year’s quarter. Likewise, adjusted gross profit increased $95.2 million to $245 million and rose 868 basis points to 43.9 per cent of net sales, compared to 35.2 per cent of net sales last year.

This growth is a result of significantly higher merchandise margins, resulting from double digit AUR increases, in both its digital and stores channels, due to the strategic reset of pricing and promotions, and lower occupancy expenses due to favorable lease negotiations and permanent store closures.

Operating income increased $90.5 million to $113.8 million in the three months ended October 30, compared to operating income of $23.3 million a year ago. Adjusted operating income also increased $85.1 million to $116.5 million. Net income also increased $65.6 million to $78.9 million or $5.30 per diluted share, in the third quarter.

“While we are only a few weeks in, Q4 is off to a very strong start. We continue to operate at a high level, while navigating the ever-changing Covid landscape. We look forward to continuing to deliver accelerated operating margin expansion for 2021 and beyond,” Elfers concluded.

FASHION NETWORK  

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31 December 2021, Mumbai:

Bangladesh has received investment proposals totaling $21.17 billion since the coronavirus pandemic struck the world nearly two years ago, said a top official. 

The Bangladesh Investment Development Authority (Bida), has got proposals involving $14.77 billion, the Bangladesh Economic Zones Authority $5 billion, the Bangladesh Export Processing Zones Authority $1.35 billion, and the Bangladesh Hi-Tech Park Authority $5.5 billion.

The proposals were received by the four investment promotion agencies between January 2020 and December 20 this year, and the figures were disclosed at the ongoing Dubai Expo 2020.

"It was the outcome of combined efforts of the four investment promotion authorities," Md Sirazul Islam, executive chairman of the Bida, told The Daily Star yesterday, confirming the investment proposals. 

"Bangladesh is an ideal destination for foreign investors as the government is creating an investment-friendly atmosphere with necessary infrastructures," he said, adding that the country had received the proposals amidst the challenging coronavirus pandemic.

In 2020, the Bida attracted $7.12 billion worth investment proposals. Of the sum, $4.85 billion came from local investors and $2.26 billion from foreign investors and the joint ventures set up by local and foreign investors.

The agency wooed $7.65 billion worth of investment proposals as of December 20 this year. Proposals worth $6.85 billion came from local investors and $806.27 million from foreign investors and the joint ventures of local and foreign firms.

Islam said the domestic market had also become lucrative for investors apart from offering export potential from Bangladesh.

"The expanding middle-class of Bangladesh is becoming the potential consumers."

It remains to be seen how much of the proposals translate into actual investment since foreign direct investment (FDI) flow to Bangladesh has been far lower than expected because of strict regulations and bureaucratic complexities.

FDI to Bangladesh stood at $2.51 billion in the last fiscal year, whereas countries such as Vietnam usually mobilised $8-10 billion in FDI per year, according to an analyst.

Bangladesh had targeted to attract $32 billion in FDI during the seventh five-year plan period stretching from the fiscal year of 2015-16 to 2019-20. But, the country had managed to receive less than $10 billion.

THE DAILY STAR 

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31 December 2021, Mumbai:

Finally some good news from fashion brand Esprit: a change of CEO has also led to a change in fortunes, as the company realised its first profit since 2017.

Back from (far) away

"Esprit in further decline," our editors wrote last year, and with good reason: the Hong Kong company had just recorded a decline in turnover by a quarter and a loss of 120 million euros. At the time, things did not look good for the chain, which had to close half of its German and almost all its Asian stores following insolvency proceedings in Germany.

All the more impressive is Mark Daley's track record during his first year of service: the net profit of 121 million Hong Kong dollars for the first half of the current fiscal year that Esprit has just announced, is the company's first profit in four years.

The company therefore unequivocally calls its heavy restructuring a success.

Future and past

Esprit is therefore ambitious for the future: a new Chief Product Officer, Sang Langill, has to make the company trendier with capsule collections and continue the focus on e-commerce. 2022 should also make Esprit a more sustainable and environmentally friendly company, the press release says.

However, Esprit is also looking back to the last part of the 20th century, as the company wants to "ignite a sense with the customer and to evoke memories of love, joy and happiness that they used to share with Esprit."

RETAIL DETAIL (The news article has not been edited by DFU Publications staff)

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31 December 2021, Mumbai.

German circualr knitter Mey GmbH & Co. KG, a global manufacturer of underwear, nightwear and lingerie, has launched the world's first nightwear worldwide with Celliant viscose, which converts body heat into energy.

Celliant viscose is said to be a unique combination of nature and performance. It was developed by materials science leader Hologenix, creators of Celliant, a responsive textile using infrared technology, and Kelheim Fibres, the leading manufacturer of viscose specialty fibres.

The collection consists of five designs in two colours, Natural and Deep Taupe, and is called ‘mey Zzzleepwear - The New Sleep-Life Balance’. It is the world's first nightwear that converts body heat to energy with Celliant viscose.

Celliant converts the heat emitted by the body into full-spectrum infrared energy and reflects it back to the skin. This supports local circulation and helps improve cellular oxygenation.

Celliant viscose features natural, ethically sourced minerals embedded into plant-based fibres and is biodegradable. Celliant viscose provides all the benefits of being a viscose fibre — lightweight, soft, highly breathable, excellent moisture management — as well as the fibre enhancements from Celliant infrared technology.

In addition, Celliant is durable and will not wash out, lasting the useful life of the product it powers.

"Sustainability isn't just a trend for us, it is part of our tradition," said Matthias Mey, Managing Partner of mey. "The first-ever nightwear with Celliant viscose is a testament to our continued commitment to sustainability. Sleep is the most rejuvenating time of the day and with the added infrared properties of Celliant technology combined with the soft, lightweight viscose fibre, our product should make it even more restful and restorative."

A true partnership

The bridge between the unique Celliant technology and the renowned manufacturer mey was formed by the Bavarian viscose specialty fibre manufacturer Kelheim Fibres. Kelheim Fibres' flexible production technology allows targeted interventions in the viscose fibre process; Celliant minerals can thus be introduced directly into the spinning mass and lead to a permanent and durable functionalization of the fibre.

The skin-friendly surface structure of viscose and its other advantages, such as its softness or excellent moisture management, are retained. Celliant viscose is the world's first in-fibre sustainable infrared viscose.

Dr. Marina Crnoja-Cosic, Director New Business at Kelheim Fibres, commented: "We congratulate mey on the launch of the new sleepwear collection. Accelerating the commercialization from the fibre development to the end product was possible through the close interaction of all participants in the value chain.

We are pleased that mey offers the consumer garments with innovative and future-oriented technology combined with proven quality for increased well-being and better sleep."

"The development of this first-ever celliant viscose nightwear is indicative of the true partnership between us, Kelheim and mey, bringing together fibre innovation from two companies into a commercially available fabric and product from mey, the esteemed bodywear manufacturer," concluded Seth Casden, Hologenix co-founder and CEO. "We hope to positively impact the lives of those using our products."

Knitting Industry (The news article has not been edited by DFU Publications staff)

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