The rupee opened on a cautious note and fell 10 paise to 68.54 against the US dollar in early trade Friday ahead of the release of key macro-economic data.
NDO – The recent signing of the Vietnam-European Union (EU) Free Trade Agreement (EVFTA) is expected to open up numerous chances for Vietnam’s garment & textile businesses to boost exports and expand markets.
Egypt recently initiated an ambitious plan to upgrade the public-sector spinning and weaving industry within four years at a cost of LE25 billion. The plan includes developing the infrastructure of the companies, procuring advanced machines from Germany and Italy and training workers to use the equipment, according to public enterprise minister Hisham Tawfik.
The subdued textile and textile products industry is not impressed by the government policy to offer “jumbo” tax deductions as the industry considers that the safeguard policy will be more helpful to protect the industry from the storm of imported products.
Indonesian Association of Synthetic Fiber Producers (APSYFI) secretary-general Redma Gita Wirawasta said on Wednesday that what was needed by the textile industry was for the domestic market to absorb the products it had manufactured.
He said APSYFI members planned to reduce the production target in the second half by 15 to 20 percent because of the declining demand from the textile industry.
“The most important thing for us is that we can sell [our products] rather than getting incentives but not being able to do business,” Redma said as quoted by kontan.co.id during an event to evaluate the performance of the synthetic fiber industry in the first half of 2019.
The government issued Government Regulation (PP) No. 45/2019 on June 25 to regulate a tax deduction of up to 300 percent, which aimed at boosting investment, research and development (R&D) as well as the participation of businesses in improving Indonesia’s human resources.
Redma stressed that without any fiscal incentives, the business would grow if the government could help boost the market demand by controlling imports.
He explained that in the period between 2007 and 2018, imports of textiles and textile products grew 12.3 percent, while exports only grew 3.1 percent.
He said the storm of imports had seriously affected the industry.
He revealed that in 2018, the factory utility of fabric was at 61.5 percent of its installed capacity, fiber at 67.7 percent, yarn at 76.5 percent and garments at 86.9 percent, while in 2017, the factory utility of fabric was at 56 percent, fiber at 67.7 percent, yarn at 75.8 percent and garments at 80.1 percent.
Published On : 11-07-2019
Source : The Jakarta Post
The financial crisis at non-banking financial companies (NBFCs) has hit India’s textile industry, as unavailability of working capital has restricted companies from capacity expansion and made difficult the servicing of existing loans.
The Cambodian ministry of labour and vocational training recently signed a memorandum of understanding (MoU) with Germany’s international development organisation, the Gesellschaft fur Internationale Zusammenarbeit (GIZ) to implement the second phase of a multinational project aimed at improving the sustainability of the textile and garment sector.