02:47:21 local time CHINA
* CEO to resign lifts Li Ning’s shares:
SHARES of sportswear group Li Ning Co surged 7.25 percent in Hong Kong after it said CEO Zhang Zhiyong will resign as it seeks new leadership to help revive sales.
Li Ning, founder and former Olympic gymnast, will team up with newly-designated executive vice chairman Kim Jin Goon to search for a new CEO to replace Zhang, the firm said in a statement yesterday.
Kim, a partner with private equity firm TPG which became an investor in the sportswear group earlier this year, was appointed non-executive director in April.
read more. & read more.
* Li Ning lets CEO go as prospects appear dim:
Li Ning Co Ltd introduced on Thursday a three-stage transformation program that started with the company CEO stepping down on Wednesday in the sportswear maker’s latest bid to cope with challenging market conditions.
Li Ning, company founder, said at a news conference in Hong Kong that it has appointed Kim Jin-goon, a partner of the US private equity fund TPG, as executive vice-chairman. He will lead the group’s internal affairs and development. read more.
* Brazil imposes tariffs on Chinese footwear:
Brazil decided on July 4 to impose tariffs of up to 182 percent on footwear parts and accessories from China, in another bid to restrict imports of Chinese footwear after an anti-dumping duty two years ago.
In March 2010, Brazil imposed a five-year anti-dumping duty of $13.85 on each pair of shoes from China. It also launched an investigation into what it called “anti-dumping circumvention” in October 2011 following a request from the Brazilian Footwear Industries Association. read more.
01:47:21 local time VIET NAM
* Apparel firms seek ways out of difficulties:
Apparel product consumption has shrunk by 40% year-on-year, forcing garment makers to seek solutions to prop up purchasing power and ride out the tough times.
Textile and garment producers are trying to catch up with customers’ demands and shopping habits to launch appropriate products, said Nguyen Huu Phung, chairman of Viet Fashion Co. (VFC). He said in the current tough times, customers prioritized cheap and durable products with attractive and diverse designs. read more.
* Japanese owned garments factory opens in Hue:
The Japanese based company ‘Tokyo Style’ opened a new US$ 21 million factory in the central province of Thua Thien-Hue on June 26.
The wholly Japanese invested facility is located in Phu Bai Industrial Zone and has an operating license of over 50 years.
The factory has the capacity to produce approximately 500,000 products a year, with only 5 percent to be sold on the domestic market.
In the future, the company hopes to raise domestic sales to 30 percent.
to read in BUSINESS IN BRIEF 7/7.
* Experts call for corporate tax cut:
A lawyer for the Viet Nam International Arbitration Centre has recommended that the government cut corporate income taxes by 5 per cent to 20 per cent in order to help enterprises lower costs on future investmens.
Lawyer Truong Thanh Duc said that high lending interest rates were not the only cause behind many closures of companies this year.
Even though loan interest rates have been cut to 13-14 per cent, most companies still are reluctant to take out loans. read more.
Workers at Nha Be Garment Corp make clothes for export. Corporate income taxes are proposed to be reduced to help enterprises lower costs. — VNA/VNS Photo Ha Thai.
01:47:21 local time THAILAND
* Plan to deport migrants with child attacked:
Human Rights Watch yesterday urged the government to scrap plans by the labour minister to deport migrant workers who become pregnant.
The proposal discriminates against women workers and would not advance the government of Prime Minister Yingluck Shinawatra’s stated aim of reducing human trafficking, the New York-based rights group said in a statement.
Labour Minister Padermchai Sasomsap last month announced plans to send home migrant workers who are three to four months pregnant. He claimed this measure would curb use of migrant child labour as it would reduce the number of migrant children in Thailand. read more.
01:47:21 local time CAMBODIA
* Cambodia’s employers, unions fail to agree on wage hike:
Garment and footwear manufacturers in Cambodia are going to add 9 U.S. dollars to the monthly wage, Kong San, vice president of the Garment Manufacturers Association of Cambodia, said on Thursday.
The addition was announced after the unions warned last week that they would stage a large-scale protest in August to demand salaries hike.
In a 3-hour meeting with the leaders of all 8 workers unions in Cambodia on Thursday, the manufacturers agreed to provide 6 U.S. dollars a month for house rent or transport fee and another 3 U.S. dollars for attendance bonus; however, the union leaders have not accepted the offer, demanding 10 U.S. dollars for house rent or transport fee.
Both sides agreed to meet again on July 11.
Nang Sothy, co-chair of the Government-Private Working Group on Industrial Relations, said the negotiations were held at the behest of Prime Minister Hun Sen.
He said that the country has about 700 garment and footwear factories, employing some 650,000 workers. The monthly minimum salary is 66 U.S. dollars plus 7 U.S. dollar attendance bonus.
Garment industry is the country’s largest foreign exchange earner. Last year, the sector exported products worth 4.24 billion U.S. dollars, up 25 percent from a year earlier. to read.
* Hun Sen asked to resolve dispute at Taiwanese-owned factories:
Cambodian Confederation of Unions President Rong Chhun appealed to Prime Minister Hun Sen Thursday to help resolve a prolonged strike at Taiwanese-owned garment factories.
In a letter, he said the workers had been on strike since June 25 but had still not yet with management, which had tried to intimidate workers to accept money and leave.
The striking workers are seeking $15 in rental and transport allowances, $15 for milk for mothers who have just delivered and $15 in other bonuses earch month.
Earlier Thursday, some 4,000 workers from the factories in Kandal province marched on Phnom Penh but were prevented from entering the capital by police.
The workers are from Tai Yang Enterprises Co and Camwell Mfg Co in Bek Chan commune in Kandal’s Ang Snuol district. Sources say the two companies have merged into Tainan Enterprises (Cambodia) Co, another Taiwanese company located in Bekchan which appears to be under the same management.
According to the Garment Manufacturers Association in Cambodia (GMAC), Tai Yang Enterprises employs some 3,500 workers to make jeans, pants and shorts. Camwell has about 2,400 workers making the same products while Tainan has less than 200 workers making shirts and trousers. to read.
00:47:21 local time BANGLA DESH
* Labour leaders want revision of workers’ minimum wage:
Leaders of different labour organisations on Friday demanded to the government for revising the minimum wages of workers, including those of the RMG sector, considering the price hike of daily commodities.
They made the demand at a conference organised by Bangladesh Labour Federation at the National Press Club in the city.
The labour leaders said that workers were passing through hardship as factory owners and the government denied them of their trade union rights.
They demanded the withdrawal of industrial police, alleging that the force had been formed to protect the interest of the owners and to continue oppression on the workers. read more.
00:17:21 local time INDIA
* NREGA: A real trickle-down:
Until 2008, the nation followed several policies inimical to inclusive growth. The most glaring among them all were those that encouraged inflow of short-term foreign funds. At a time when the current account situation was comfortable, there was no need to encourage such inflows. Yet it was done in more ways than one, be it through investments allowed in the stock market from countries having zero taxes, or freely allowing foreign currency borrowings even for rupee-designated expenses.
The RBI restricted external commercial borrowings (ECBs) after it realised their impact on money supply.Yet, the Government allowed a few large businesses to bring in billions of dollars each month as ECBs (in fact, ECBs went up after being brought under the restriction). The money supply increased, forcing the RBI to increase its reserves, and with it rose the interest rate.
Transfer of wealth
Effectively, small and retail borrowers were paying additional interest to subsidise the interest savings of the large corporates who brought in ECBs. Several other such policies aided transfer of wealth from the poor to the rich.
read more (The author is CMD, Loyal Textiles.)
* Cotton blooms on huge orders from spinners:
Cotton prices increased by Rs 1,600 a quintal at the Bhoodapady Regulated Marketing Committee sales on Wednesday and Thursday as mills placed huge orders with traders.
Mr Arumugasamy, a cotton trader from Madurai, said: “We are in need of cotton now, as we have received huge orders from spinners. So we are quoting higher price and there is heavy competition at the Bhoodapady Regulated Marketing Committee”.
He said that due to rain in North India traders opt to buy cotton here. read more.
* India can have an edge in garment exports:
As China is becoming more expensive and moving away from mass exports, India and other Asian countries can grab larger share of the global market, writes Umesh M Avvannavar
Thanks to the global economic recovery, exports from India are booming and one industry which has greatly benefited from the demand upturn is readymade garments.
Being the second largest job provider, the garments industry now employs nearly 70 lakh people in India. Besides, the rise in exports is also good news for the economy.
Helped by the rising demand in the US, India’s apparel exports have increased by a whopping 24 per cent in February 2011 over the same month, the previous year to Rs 5,284 crore after registering an impressive rise of 18 per cent in January 2011. Though monthly exports of garments in 2010-11 were below the previous year’s levels in the intial months, the situation turned for the better from November 2010. In the first 10 months (April-January) of the last financial year (2010-11), the total garment exports stood at Rs 39,787 crore, against Rs 41,771 crore, the previous year. read more.
* Textile debt recast meet on July 13:
A meeting of a Group of Officers will be held on July 13 in New Delhi to formulate debt restructuring proposals on a case-by-case basis for the textile industry.
In a letter to the Union Ministry of Finance last month, the Reserve Bank of India (RBI) said that it had no objection to proposals such for two-year moratorium on term loans and conversion of working capital into working capital term loan.
However, the apex bank felt that the asset classification benefit on second restructuring was not justified.
Industry sources said that the small and medium-scale textile mills in Tamil Nadu and Andhra Pradesh were the worst affected because of the cotton price fluctuations last year. Since the Government had announced a debt restructuring package, it should now look at the options of implementing it, they added. read more.
* Weavers cautioned against Chinese shuttleless looms from China under R-TUFS:
The Federation of Indian Art Silk Weaving Industry (FIASWI), an apex body of the powerloom weavers in the country, has cautioned weavers from placing orders for the hi-tech powerloom machines with the Chinese companies under the Restructured Technology Upgradation Fund Scheme (R-TUFS).
According to FIASWI, the hi-tech shuttleless powerloom machines manufactured by China do not fall under the specifications fixed by the ministry of textile to avail benefits for 10 per cent capital subsidy and ceiling of Rs 1 crore margin money subsidy under 20 per cent MMS-TUFS for the powerloom sector.
Arun Jariwala, chairman, FIASWI said, “There is a misconception among the weavers falling under the category reserved under the R-TUFS for the small and medium manufacturers that they can import the hi-tech powerloom machines from China and avail 10 per cent capital subsidy.” read more.
23:47:21 local time PAKISTAN
* ‘Textile sector rehabilitation in country’s interest’:
State Bank of Pakistan (SBP) firmly believes in rehabilitation of textile sector, which is largest export earner, one of largest employment provider and largest investor in the country.
SBP Governor, Yaseen Anwar in meeting with members of All Pakistan Textile Mills Association (APTMA) said a special committee would be formed to look into textile industry’s problems to make it viable, competitive in world market.
He said textile sector, second to none and even in present challenging economic scenario was achieving export value of around $12.4 billion was commendable.
* Bringing certain textile sectors into GST net: National Assembly panel decides to invite FBR chief to resolve issue:
National Assembly Standing Committee on Textile Industry has decided to invite Federal Board of Revenue Chairman to resolve the issue of bringing services, sizing and power looms sectors of textile chain into GST net. The committee met with Haji Akram Ansari MNA in the chair here on Wednesday. The meeting was scheduled to discuss negative impact of power loadshedding on textile sector, the lost foreign exchange earning sector of the economy. read more.
* SBP Governor assures textile sector of support:
The State Bank of Pakistan (SBP) firmly believes in strengthening of textile sector, which is the backbone of the country’s economy. This was stated by Governor SBP Yaseen Anwar during a meeting with the office-bearers and members of All Pakistan Textile Mills Association (APTMA) on Wednesday. The SBP Governor said that a special committee would be formed to resolve the issues of the textile industry to make it viable and competitive in the international market.
He said that the textile sector was second to none and even in the present challenging economic scenario its achievement of around $12.4 billion export value was commendable. read more.