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Monday, 6 June 2016 00:00 - - {{hitsCtrl.values.hits}}
Prof.Lakdas D Fernendo addressing media during a press conference held at Hotel Ramada regarding the forthcoming event (AISEX) Apparel Industry Suppliers Exhibition to be held from 9 -11June at Sirimavo Bandaranaike Memorial Exhibition Centre in Colombo. Lanka Exhibition and Conferences Services Ltd General Manager Husni Rauf, and University of Moratuwa Fashion Design Degree Course Director Dr. Nirmali De Silva are also present - Pic by Gitika Talukdar
By Shannine Daniel
Sri Lanka Apparel Institute (SLAI) Chairman Lakdas Fernando last week stated that the GSP Plus is ‘a double edged sword’ and many involved in the garment industry have mixed feelings towards it.
This is mainly because it has a lot of conditions attached to it, both positive and negative, Fernando elaborated.
“I believe the short term GSP Plus will help all industries, however in the long term it will blunt the competitive edge of our businesses,” he stressed.
Fernando pointed out that in the short term it will give a boost to the apparel industry, however in the long term if the industry totally depends on GSP it will blunt their competitive edge. “We must be careful that we don’t totally depend on GSP Plus, and we have to be aware that we have markets other than the EU,” he stated.
“The European market is a good market and the prices are superior, but we will have to compete with countries such as Vietnam, Myanmar and Bangladesh and now even the African countries are coming up,” Fernando added. He went on to say that as the country’s economy itself doesn’t have complete control over GSP Plus and only the European Union has 100% control over it and this is one negative factor.
Furthermore, Fernando stated that if the apparel industry is not completely ready it will be like the Multi Fibre Agreement Quota system and the consequences that came as a result of it being taken away.
“During that time we were thriving and we had 800 apparel factories. When the MFA Quota system was misplaced it didn’t vanish over night, sufficient warnings were given about it. Some of the major companies were ready to meet challenges without the MFA. But the SMEs, even with their weak marketing, didn’t take much notice of it and they collapsed,” he continued.
“The big question is, are we ready for GSP plus? At the moment we are talking so much about it, but we need to make changes in technology, production methods and a lot of things, which are as equally important as getting GSP Plus, if we are to reap the maximum benefit of it,” opined Fernando. He went on to say that while the large enterprises in the apparel industry are ready for GSP Plus in terms of capital and technology, the SMEs need to be more prepared.
“When it comes to the SMEs, even though they say they want GSP plus they have not done enough to work with it. Because with GSP plus, new buyers come along; unless you upgrade your technology you are nowhere,” Fernando opined.
He added that in the short term, GSP plus directly benefits the buyer, without helping the manufacturer; therefore making it more attractive for buyers to come to Sri Lanka.
He went on to say that the Government is pushing hard to acquire GSP plus, not only for the apparel industry but for all other industries as well. However the apparel industry stands to benefit the most, and expects to obtain it by late 2017.
“Since the Government is supporting GSP Plus, the SMEs may be able to modernise their factories in some way by bringing in state-of-the-art machinery and new production methods as well,” noted Fernando.
On a different note Fernando added that the apparel industry is not going to collapse if the Government changes its mind and decides not to acquire GSP Plus, since the necessary changes that are being made among the garment enterprises right now will benefit them regardless.
Apparel Industry Suppliers Exhibition (AISEX) is an exhibition which aims to bring all suppliers and service organisations under one roof. The exhibition will focus on a wide range of textile machinery, accessories and services from many parts of the world.
AISEX 2016 will take place from 9-11 June at the Sirimavo Bandaranaike Memorial Exhibition Centre (SBMEC). The event is organised by Lanka Exhibition and Conference Services Ltd. – LECS and supported and endorsed by the Sri Lanka Apparel Institute (SLAI), Joint Apparel Association Forum (JAAF), Ministry of Industry and Commerce and Sri Lanka Institute of Textile and Apparel.
Chief Guest will be Minister of Primary Industries Daya Gamage.
AISEX aims to sharpen the manufacturers’ hunger for technological innovations in the apparel industry and hopes to provide the garment industry with the complete solutions necessary to forge ahead.
In an industry where productivity is the key to success; the impact of new innovations and inventions play a vital role in determining the success of the manufacturer. AISEX will encourage suppliers and service organisations to showcase their latest products for the apparel manufacturer. The networking that is inevitable to take place during this exhibition will also help build global relationships between such parties.
The exhibition will generate new opportunities closer to home, within the South Asian region. There are emerging opportunities in regional markets and not just in the EU and the US. The domestic markets in the region are growing and there is an opportunity for local brands to target regional markets, like India.
AISEX 2016 will create opportunities for suppliers, manufacturers and services related to the apparel industry to display their latest range and developments.
The organisers have revived AISEX after a lapse of seven years, mainly due to the fact of the recent visit by the EU delegation and the prospect of GSP plus. The industry is seeing a rapid growth in terms of production. Sri Lanka is still considered as a favourite sourcing destination due to its best practices and ethical manufacturing (garment without guilt).
