Apparel Online India Magazine March 1st Issue 2019

INDONESIA All About Apparels Country Apparel Exports Total Factories Core Products Minimum Wage (US $ billion in 2018) Bangladesh Cambodia Ethiopia US $ 30.61 4500 Trousers, Jeans, Sweaters, Tees, Shirts 95 100 7 1,100 Knitted garments, Sweaters, Kidswear, Undergarments, Jackets, Active wear 182 98 1 300 Indonesia 12.58 4,000 Myanmar 2.7 600 Sri Lanka 5 1000 Vietnam India Logistic Ranking 2018 Shirts Jackets, Shirts, outerwear, Sweaters, Pullovers 55 126 125-248 46 95 137 135 94 182 39 110-260 44 Sportswear, Shirts and Formal Suits, Jackets, Womens’ overcoats, Capes and Wind Jackets Swimwear, Intimatewear, Woven bottoms, Activewear 36 6000 Jeans,Outerwear, Jackets, Shirts 16.7 5,000 Ladies fashion garmented Source: Apparel Resources.com and others This ranking shows that where a country stands in its overall logistic services. Logistics Performance Index (LPI) by World Bank is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics. Ethiopia’s ranking is of the year 2016. Overview and Comparision Country Population Workforce in % of total Garmenting population (million) (million) in garment industry GDP US $ BN Political conditions Currency value against US $1 (Feb. 2019) Bangladesh 165 4.5 2.7 249 Stable 84 Taka Cambodia 16 0.74 4.6 22.16 Stable 4026 Cambodian Riel Ethiopia 10.5 NA 80 After emergency now stable 28 Ethiopian Birr Indonesia 260 NA 1015 Stable, election in April 2019 13948 Indonesian Rupiah Myanmar 53 0.45 0.84 69.32 Stable 1519 Myanmar Kyat Sri Lanka 21 0.7 3.3 87 Now okay after political crisis in October 2018 177 Sri Lanka Rupees Vietnam 95 3 3.15 233 Stable 23,239 Vietnamese Dong 1330 12.9 0.96 2597 Stable 71 Indian Rupees India Source: Various reputed websites The rising GDP normally reflects that the economy is in good shape. In some sense, a higher GDP should equate to greater human progress, because it means more valuable goods and services have been created. Though GDP does not even capture this traditional economic value well. 30 Apparel Online India | MARCH 1-15, 2019 | www.apparelresources.com Infrastructure for apparel manufacturing an edge J ackets, outerwear and trousers are the product strengths of Indonesia. After Cambodia, it has the highest minimum wage (US $ 125-248) compared to other mentioned countries. Infrastructure is one of the biggest strengths of Indonesia, as currently it has 9 SEZs and is eyeing 25 by 2019 end. There are total 74 industrial parks out of which 55 apparel parks are in Java, while 16 are in Sumatra. Indonesia is involved in almost every sector of the textile supply chain including yarn production, weaving, knitting, dyeing, printing, finishing and clothing manufacturing and there is a large man-made fibre industry too. Currently out of the total trousers import of US and EU, Indonesia has a hare of around 7.26 per cent (quantity-wise). While in tees, it is 5.31 per cent. In total import of US’s jackets and blazers, the share of Indonesia is around 4.25 per cent. UVR (in Euro, per KG) of trousers is 19.1, for tees is 22.82, for jackets and blazers is 28. Operators’ skills and technology level are adequate for the Indonesian workforce and it is trying to finalise FTA with the EU and the US. The completion of the Indonesia- Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will further boost exports. Top Groups: PT Buana Indah Garment, Busana Apparel Group Production Hubs: Java, Jakarta, Tangerang, Sukabumi, Bandung, Boyolali and Sragen Major clients: Uniqlo, Adidas, H&M, Forever 21 COMMON CHALLENGES • Most of these hubs are lacking majorly on their backword support, especially with respect to yarn and fabric. • Myanmar has a problem with high electricity tariffs and must switch from the Cut-Make-Pack system to Free on Board. • In Vietnam, overall focus and major investment is being shifted to the technology sector and there is negligible investment in laundry. • In Ethiopia, limitation of managerial and technical professionals, low productivity are problems. • While Indonesia faces high logistics cost, including transport, warehousing. Out of these 7 countries, Cambodia, Indonesia, Myanmar and Vietnam are the members of the Association of Southeast Asian Nations (ASEAN). The Regional Comprehensive Economic Partnership (RCEP) is a mega free-trade agreement being negotiated by 16 countries, comprising 10-member ASEAN group (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and, India, China, Japan, South Korea, Australia, and New Zealand.

Apparel Online India Magazine March 1st Issue 2019 | Page 30