TDAP –JICA Activitiestdap-jica.com/pdf/textile_association.pdf · 1-7 Overview of Textile...
Transcript of TDAP –JICA Activitiestdap-jica.com/pdf/textile_association.pdf · 1-7 Overview of Textile...
INDEX
1. Overview of Textile Industry in Pakistan
2. Pakistan’s Textile Export to Japan
3. JICA Project Activities under TDAP
4. Recommendations for Textile Industry
1-1 Overview of Textile Industry in Pakistan
• Pakistan’s textile industry ranks amongst the top in the world.
• Cotton based textiles contribute over 60% to the total exports, accounts for 46% of the total manufacturing and provide employment to 38% manufacturing labor force.
• The availability of cheap labor and basic raw cotton as raw material for textile industry has played the principal role in the growth of the Cotton Textile Industry in Pakistan.
1-2 Overview of Textile Industry in Pakistan
Value chain of textile industry
RAW MATERIAL
RETAIL STORES TEXTILE PLANTS
SPINING WEAVING
DYING PRINTING
ACCESSORIES
APPAREL PLANTS
DISTRIB. CENTRES
CUSTOMERS
1-3 Overview of Textile Industry in Pakistan
TOP BUYERS OF PAKISTANI TEXTILE GOODS ARE
1) USA 2) EU 3) Gulf region 4) UK 5) Hong Kong
6) Japan 7) Korea 8) Saudi Arabia 9) Italy 10) Turkey
1-4 Overview of Textile Industry in Pakistan Growing International Textile & Apparel Market
International Textile & Apparel Trade (USD Bn)
CAGR (2008-2012)
2.7%
3.5% 3.1%
Source: ITC calculations based on UN COMTRADE statistics
Textiles include raw cotton, yarn, fabrics, made ups, towels, tents etc
1-5 Overview of Textile Industry in Pakistan
%Share of countries in the Global Textile and Apparel Exports, 2012
Source: ITC calculations based on UN COMTRADE statistics
1-6 Overview of Textile Industry in Pakistan
%Share of Towel & Madeups Exports, 2012-13
Source: Bureue of Statistic, Pakistan
Raw Cotton 1%
Cotton Yarn 17%
Cotton Cloth 21%
Knitwear 16%
Bed Wear 14%
Towels 6%
Tent, Canvas & Tarpulin 1%
Readymade Garment 14%
Art-Silk & Synthetic Textile
3% Made-ups (Other Textiles)
4%
Other Textile Products
3%
1-7 Overview of Textile Industry in Pakistan SWOT Analysis of Region’s Textile Industry
Strengths
Abundant supply of raw cotton
Low wage rates makes it a low cost textile
producer
Textile & apparel industry is the largest
employment generating industry
Weaknesses
Low WGI s
Low labour productivity due to lack of skilled
training
Poor infrastructure
Lack of investment in Research, Development
and Technology.
Long list of Laws / regulation /Conventions
Opportunities
Growing international trade
Buyer’s Keenness to increase region’s buying
from textile industry
GSP + rating
Explore opportunities beyond current strong
categories (bottoms & made-ups)
Threats
Political instability and fragile security situation
Long transit times for US and EU based clients
render locational disadvantage
Competition from neighbouring countries
adopting BWP
2-1 Pakistan Textile Export to Japan
2011-12 2012-13 2013-14
Exports 202,545 166,564 198,658
Imports 1919,710 2038,399 1777,492
Balance (-1717165 ) (1871835 ) (1578834)
PAKISTAN - JAPAN BILATERAL TRADE
(Value in ‘000’ US Dollars) Source FBS
2-2 Pakistan Textile Export to Japan
Japanese Textile Import from World/Pakistan
(Value: Million Yen) World Over From Pakistan • Yarns Total 128,866 3,695(2.9%)
• Fabrics Total 211,107 2,233(1.1%)
• Clothing Total 3,153,331 1,907(0.1%)
• Other Made-Up Goods 509,851 1,509(0.3%)
• Grand Total 4,003,156 9,344(0.23%)
3-1 JICA Project Activities under TDAP For Business matching between Pakistani exporters and
Japanese buyers, the following activity programs were prepared for TDAP members under JICA project.
1. Preparation & Field Works
2. Company Visit Activities
3. Making of Export Promotion Booklet for Japan
4. Textile Workshop with theme of “How to Access Japanese Market”
5. Sending Trade Delegation to Japan for Business Matching
6. Pakistan Now! Business Seminar & B2B Meeting in Japan
7. Follow-up of Business Matching
3-2 JICA Project Activities under TDAP
English Version Cover
Japanese Version Cover
a) “Pakistan Now!” Booklet
3-3 JICA Project Activities under TDAP
List of 50 exporters introduced in the Booklet
1) Textile (Home Textile & Garments)
1. Abdur Rahman Corporation (Pvt.) Ltd.
2. Afroz Textile 3. Al-Karam Towel Industries 4. Asacotex 5. Bismillah Carpets (Pvt.) Ltd. 6. Feroze1888 Mills Limited 7. GIA Export Marketing Services 8. Gohar Textile (Pvt.) Limited 9. Gul Ahmed Textile Mills Limited 10. Indus Home Limited 11. Interloop Limited
12. Masood Textile Mills Ltd. 13. Mustaqim Dyeing & Printing Ind.
(Pvt.) Ltd. 14. Nishat Chunian Ltd. 15. Pearl Fabrics Company 16. Rajby Industries 17. Sadaqat Limited 18. Sapphire Textile Mills Limited 19. Siddiqson Limited 20. Soorty Enterprises (Pvt.) Ltd.
2) Leather
21. Din Leather Private Ltd. 22. Hub Leather (Pvt.) Ltd. 23. Ihsan Industries (Pvt.) Ltd. 24. Leather Field (Pvt.) Ltd. 25. Muhammad Ashraf & Sons
26. Mima Leather (Pvt.) Ltd. 27. Noor Leather Garments (Pvt.) Ltd. 28. Nova Leather 29. STA Leather Product
3) Agricultural & Marine Foods
30. Durrani Associates 31. Fauji Fresh ‘N’ Freeze 32. Iftekhar Ahmed & Co. 33. Imtiaz Enterprises
34. Nutricia Food International (Pvt.) Ltd.
35. Seagreen Enterprises (Pvt.) Ltd. 36. Son of the Sea
4) Surgical Instruments
37. Banzai Corporation 38. Dr. Frigz International (Pvt.) Ltd. 39. Elmed Instruments 40. Enika Trading
41. Hilbro International (Pvt.) Limited 42. IAA Surgical Instruments Company 43. Sobytek Instruments Co.
5) Sports Goods
44. Ali Trading Co. (Pvt.) Ltd. 45. Ballon De Sports 46. Capital Sports Coporation (Pvt.) Ltd. 47. JSD Sports (Pvt.) Ltd. 48. Mansha’s Brother (Pvt.) Ltd. 49. Six A's Group 50. Vision Technologies Corporation
(Pvt.) Ltd.
a) “Pakistan Now!” Booklet
3-5 JICA Project Activities under TDAP
Subject: How to Access Japanese Market Lecturer: Mr. Yoshiaki Kamiyama, Sr. Researcher of Japan
Textile Importers Association Place & Date: Karachi : 14th April, 2014 (Monday) – : 10:00 to 13:00 Place: Regent Plaza Hotel, Karachi Lahore : 16th April, 2014 (Wednesday) – : 10:00 to 13:00 Place: Avari Hotel, Lahore Faisalabad : 17th April, 2014 (Thursday) – : 10:30 to 13:30 Place: Faisalabad Chamber of Commerce & Industry, Faisalabad
b) Textile Seminar
3-6 JICA Project Activities under TDAP
Karachi: April 14, 2014
Lahore: April 16, 2014
Faisalabad: April 17, 2014
b) Textile Seminar
3-8 JICA Project Activities under TDAP
After making Japanese version of TDAP’s export promotion booklet “Pakistan Now!” in April, 2014, JICA Advisor immediately organized Business Seminar & B2B Meeting in Japan as an effective export promotion event with the official launching of this booklet in Japan.
Project Name: “PAKISTAN NOW! - Business Seminar & B2B Meeting” Sponsored by TDAP and JICA Period: June 22, 2014 – June 28, 2014
c) Business Seminar & B2B Meeting in Japan
No of Delegation Members and TDAP members Delegation: 11 members TDAP: 5 members
Date & Place for Business Seminar & B2B Meetings June 23: Osaka / Osaka Chambers of Commerce & Industry (OCCI) June 24: Osaka / Consulate of Pakistan Osaka (Additional B2B Meetings) June 25: Tokyo / KFC Hall, Hall 2nd June 26: Tokyo / Embassy of Pakistan (Additional B2B Meetings)
TDAP Members Delegation Members
DG TDAP Staff Textile Leather Agricultural Foods
Surgical Instrumen
ts Sports Goods
1 4 5 2 1 2 1
3-9 JICA Project Activities under TDAP
c) Business Seminar & B2B Meeting in Japan
3-10 JICA Project Activities under TDAP
Although Karachi airport attack by TTP was happened a couple of weeks before this event, both Osaka and Tokyo were full house, fortunately. Actual number of registered participants is as follows:
Actual number of attendance would be more than 100 in each seminar .
Osaka Tokyo Total
Textile 40 26 66
Leather 11 10 21
Agrifood 7 4 11
Surgical Instruments 12 4 16
Sports Goods 2 6 8
Total 72 50 122
Osaka Seminar participants 75 B2B participants 44 Tokyo Seminar participants 80 B2B participants 36
Total number of B2B meetings is as follows:
c) Business Seminar & B2B Meeting in Japan
3-11 JICA Project Activities under TDAP
Business Seminar in Osaka Business Seminar in Osaka
Business Seminar in Tokyo Business Seminar in Tokyo
c) Business Seminar
4-1 Recommendations for Textile Industry
1-1)Great Business Opportunity in the “CHINA PLUS ONE “Trend
The business trend of “China Plus One” (to secure other Asian suppliers besides China) has been accelerated rapidly in Japan.
Recently, it is obvious to see quality deterioration of Chinese
products due to omitting crucial steps in the production or decreasing necessary costs in lower value added products.
Regarding the basic products like home textile, some Japanese think that some Pakistani products are better than Chinese products on quality and price.
4-2 Recommendations for Textile Industry
It is a great business opportunity for Pakistan to take more market shares in Japanese market while it has extremely low market share in Japanese textile import market in spite of having huge textile industry in the country.
More strategic promotion activities shall be implemented to give strong impact or
good impression to Japanese buyers at this timing. Especially finished products such as home textile and garments are recommendable.
It is also important to show what competitive advantage of Pakistan is or why Pakistan products are superior in a series of promotion activities, especially, in a comparison of other Asian countries such as China, South East Asian countries, Bangladesh, and India.
1-2) Great Business Opportunity in the “CHINA PLUS ONE “Trend
4-3 Recommendations for Textile Industry 2-1) Improvement on Quality, Inspection, and Delivery Japanese companies are always concerned about quality, inspection,
and delivery. Pakistani companies’ performance on these matters is basically not
enough than other Asian competitors since seldom have direct guidance or training by Japanese customers in their factories while most of Chinese or ASEAN companies can have such things through transactions with Japan.
There would be a possibility of huge improvement on these issues by Japanese companies’ support through increase of export to Japan from now on. There are many rooms for improvement in production control, quality control , and inspection in the factory operation of Pakistan textile companies
4-4 Recommendations for Textile Industry
For improving these matters, wide range of educational activities through technical workshops shall be arranged for textile related people by comparison with relevant factories in Japan and China.
It would be also useful to introduce feedbacks through direct
guidance by Japanese expert in Pakistani textile factories at workshops.
Regarding inspection, it is desirable that Japanese inspection & logistic companies could come to Pakistan as same as China and other Asian countries.
2-2) Improvement on Quality, Inspection, and Delivery
4-5 Recommendations for Textile Industry
Regarding business with Japan, Pakistan still have several disadvantages compared with other Asian competitor countries such as far distance from Japan, security issues, import duty issues and so on.
It is necessary to challenge more positive and aggressive business matching
activities between Pakistan and Japan to overcome the above disadvantages.
3) Positive Actions for More Business Matching
It would be another interesting challenge to organize Japanese delegation to Pakistan sector by sector and arrange more intensive business matching. Especially, there would be a lot of potential Japanese participants in textile sector, it may be a good idea to focus on home textile or garment sectors at the beginning.
It is also necessary to continue promotion activities from Pakistan side such as
arrangement of business mission to Japan, participation in international exhibitions in Japan, etc. to expand business opportunities for Pakistan.
4-6 Recommendations for Textile Industry
The tariff problem is still a major barrier with regard to Pakistani textile export to Japan. Especially, the finished textile products such as home textile and garments are always facing severe price competitions.
In most of the cases, Bangladesh or Viet Nam are more advantageous on price completion due to their tax exemption to Japan. As a result, there are many cases that Pakistani products are shelved in the price comparison.
Until now, government officials and private sectors of Pakistan always have taken initiative to insist the tariff exemption to Japanese government. However, nowadays, Japanese companies which import textile products from Pakistan are also willing to have tax exemption for Pakistan.
It would be better to do lobby activities on the issue of the tariff exemption in the form together with major Japanese companies, to prompt a rethink to the Japanese government.
4) Import Duty Issues
Annexures
Proposed Activities in 2015 for Textile sector (1-1)
①Strengthening Export Promotion to Japan / Increase of Participation Opportunity in Exhibitions and Business Meetings in Japan
②Organizing Japanese Delegation to Pakistan in Textile Sector
③Research and Proposal for Differentiation Strategy to Pakistani Textile Industry=>Collaboration with Ministry of Textile, etc.
Annexures
Proposed Activities in 2015 for Textile Sector (1-2)
④ Business Matching with Textile related Technology Companies in Japan for improving strength of Pakistani Textile Products
⑤ Textile Workshop for Production Control and Quality Control
⑥ Dispatch of Pakistani Business Mission for Factory Visits in Japanese-related textile companies in Asia or Japan