The Association of Southeast Asian Nations (ASEAN) is all set for an ambitious trade pact that aims to ease tariffs, increase investment flow and open borders across 10-member countries.
ASEAN, the world’s 7th largest market and home to nearly 10 per cent of the world’s population, hopes to garner more attention from the global investor community. The EU-styled market is expected to boost the textile and apparel industries of member countries — Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The trade bloc also aims at building stronger business ties among these member countries to compete with China and Japan and the US-led Trans-Pacific Partnership.
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In this regard, ASEAN Federation of Textile Industries (AFTEX), a group of textile and garment associations of the 10 ASEAN member countries, has launched the Source ASEAN Full Service Alliance (SAFSA), linking apparel factories of ASEAN countries to create a virtual vertical supply chain between buyers, textile mills, and apparel factories, enabling businesses to offer a complete service package to international buyers. Some of the major brands, which are SAFSA customers, include the Benetton Group, Colombia Sportswear Company, Debenhams, Guess, Marks & Spencer, Polo Ralph Lauren, and Hermes-OTTO.
Le Luong Minh, ASEAN’s Secretary-General said “It’s a big milestone for us. We’ve made a lot of progress,” he said, adding that that less than a half century ago, some Southeast Asian countries were still at war.
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Members like Cambodia, Vietnam and Thailand have emerged as the credible textile players of the world. Meanwhile, Cambodia and Myanmar and Vietnam have established themselves as credible producers, while the US and Europe absorb the major chunk of exports. Levi’s, Gap, Sears, Wal-Mart and Disney are some of the major brands that have production bases in these countries.
