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    Will India'S Leading Role In The Import Of Yarn From China Be Shaken?

    2016/6/30 21:52:00 46

    IndiaChinaImport Yarn

    From the source of China's pure cotton yarn imports, India, Pakistan and Vietnam rank the top three.

    In 2015, India had the largest share of pure cotton yarn imported from China, while Pakistan and Vietnam were two or three.

    According to the data of 1-5 months this year, the proportion of pure cotton yarn imported from Vietnam has increased rapidly, and has surpassed India in 3-5 months to become the number one.

    Will India's leading role in the import of yarn from China be shaken?

    UjwalR.Lahoti, vice chairman of India Cotton Textile Export Promotion Council (TEXPROCIL), analyzed the advantages of India's spinning industry.

    India is the largest cotton producing country in the world. Cotton production has an advantage over spinning production. It has the advantage of raw materials, and India has the world's leading textile industry, equipment manufacturers and the youngest production managers.

    It has the ability to increase productivity and produce higher quality yarn through various high technologies in order to produce more competitive yarn.

    UjwalR.Lahoti believes that cooperation between India and Chinese textile producers is very necessary.

    In view of the obvious and sustainable advantages of India in textile manufacturing, the convergence between Chinese textile entrepreneurs and India supply chain is favorable.

    At the same time, due to the advantages of China and India on different raw materials, the two sides can complement each other in raw material links.

    The rational utilization of the advantages of India yarn and grey fabric enterprises in China's textile enterprises is conducive to enhancing the competitiveness of Chinese textile enterprises themselves.

    India textile industry will become the most competitive textile industry in the world after integrating into China's textile supply chain.

    China and India can achieve mutual benefit through investment cooperation.

    DharmendraGoyal, general manager of India TirupatiYarns company, focuses on the competitiveness of India cotton yarn.

    At present, the production and utilization of cotton yarn in India is increasing year by year. In the 2016 fiscal year, the output of cotton yarn in India reached 4 million 140 thousand tons, with an annual growth rate of 2%.

    However, the export of cotton yarn has slowed down, and the monthly export volume has continued to go down. The total export volume of cotton yarn has dropped by 9% in the past 6 months.

    Pakistan cotton yarn once occupied the largest share of China's imports of yarn. Why did it shrink in recent years? Is there any potential for improvement? AhmedEllahi, general manager of AALEATHER, introduced the challenges and opportunities faced by Pakistan's textile industry.

    At present, Pakistan is facing a decline in cotton production (down 34% this year), and there is no tax rebate for export, and it is difficult to obtain R & D support.

    In addition, the investment in Turkey's spinning industry has increased sharply, making Pakistan face fierce competition.

    But there is no denying that Pakistan still has its own advantages.

      

    Pakistan

    The development goal of the textile industry is that textile exports doubled from 13 billion US dollars to 26 billion US dollars in 2020. The proportion of textile industry in GDP rose from 8.5% to 10%, and the share of global textile and garment exports increased from 1.8% to 3%.

    The number of employment in the textile industry doubled from 15 million to 30 million, and the textile industry increased by 1 billion US dollars / year.

    India has an area of 11 million 880 thousand hectares of cotton, accounting for 37% of the total cotton growing area in the world.

    But cotton production per unit in India is 504 kg / ha, while the world average is 741 kg / ha.

    India already has the advantages of production cost and exchange rate. If output is effectively raised, then

    India cotton

    Will be more competitive.

    But it is undeniable that India's cotton yarn is also facing the challenges of TPP's principle of origin, Xinjiang's textile policy and RMB depreciation.

    Goyal suggested that India's cotton yarn should reduce its dependence on China and expand to the world, especially in other Asian countries such as Bangladesh, Vietnam and Pakistan.

    Vietnam's yarn imports are growing rapidly. Textile companies in China are also more interested in Vietnam. Did Vietnam have more opportunities in 2016? Chairman NguyenVanTuan of Vietnam Cotton Textile Association (VCOSA) introduced Vietnam's textile and garment industry.

    At present, fabric production is Vietnam.

    textile

    The bottleneck of the development of the garment industry, and TPP and EVFTA agreement on Vietnam's textile and garment industry will bring long-term benefits.

    At present, the United States accounts for 47% of Vietnam's clothing exports, and the average tariff of the United States imported from Vietnam is 17.5% (12%-32%).

    In accordance with the TPP agreement, the import tariff will be cancelled if the "YarnForward" rule is met (the yarn of the production fabric is produced in Vietnam).

    Vietnam's clothing exports to the EU accounted for 15%, and the EU's average tariff from Vietnam is 9.6%.

    After the entry into force of the EVFTA free trade agreement, import tariffs will be abolished within 7 years.

    According to the plan, in 2025 Vietnam's textile and garment industry will reach 5 million workers, 17 million 900 thousand spindles and 12 billion square meters of fabric production, and export volume will reach US $50 billion.

    At the end of ~2013 in January 2000, foreign direct investment in Vietnam's textile and garment industry was US $8 billion 200 million, while foreign direct investment in Vietnam's textile and garment industry reached US $5 billion 800 million at the end of January 2014 ~2015.

    NguyenVanTuan introduced the construction of RangDong Industrial Park in particular.

    He believes that the RangDong Industrial Park is the ideal location for the construction of a textile factory.

    The RangDong Industrial Park is located in the southeastern part of Nam Dinh, Nam Dinh Province, 140 km away from the capital Hanoi and 120 km away from the coast defense port.

    The objective of the project is to build a world-class textile supply chain with the advantages of Vietnam's land resources and labor force.


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