From the Sector

In recent years, Vietnam has rapidly transformed into one of the world’s key textile producers, solidifying its position as the world’s third-ranked exporter behind China and Bangladesh. With a history rooted in silk textile craftsmanship and currently embracing wide ranging modern textile production, the country’s thriving sector offers tremendous growth prospects for both domestic and international businesses. In a bid to harness the potential in Vietnam and Southeast Asia, the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) will return from 26 – 28 February 2025, with a renewed focus on promoting sustainability and digital transformation.

Vietnam's textile and apparel sector comprises approximately 7,000 companies and employs over three million workers, with 80% of production capacity used for export and 20% for domestic consumption. Progress is aided by well-developed logistics networks, skilled labour and a stable political environment. As its textile industry evolves, several key trends are influencing its future direction, reflecting a growing emphasis on sustainability and technological advancement, and leading to new opportunities for exhibitors and buyers across the value chain at Vietnam’s comprehensive textile showcase.

Major trends shaping Vietnam's textile market reflected at VIATT
More Vietnamese enterprises are adopting eco-friendly materials, including organic cotton, recycled polyester, and Tencel, while numerous global brands manufacture in Vietnam, and have committed to the "Fashion Industry Charter on Climate Action", aiming to achieve net-zero carbon emissions by 2050.

To further advance sustainable initiatives in the domestic and international textile industry, VIATT 2025 will introduce Econogy Hub, a dedicated platform for innovative, eco-friendly suppliers and service providers to connect with like-minded visitors. The show’s other new Texpertise Econogy features will include the Econogy Finder, an independent verification tool to help sustainable exhibitors effectively communicate their green credentials, and Econogy Talks, the overarching category for eco-focused seminars, forums, and product presentations.

Apart from sustainability, the Vietnamese textile industry is also embracing advanced technologies in design and manufacturing. The launch of the fair’s Innovation & Digital Solutions Zone will provide a centralised platform for exhibitors to showcase innovations such as 3D printing, AI-driven design, and digital printing, which enable manufacturers to boost efficiency and customise products to meet specific market demands.

As well as the introduction of two new product zones, the India Pavilion, organised by The Cotton Textiles Export Promotion Council (TEXPROCIL), will also make its debut at VIATT 2025. Additionally, the Japan and Taiwan Pavilions have confirmed their return, with the Japan Pavilion recognised by VIATT’s visitors as a standout showcase within Southeast Asia's textile fair landscape. Overall, the fair will feature a diverse range of exhibitors across apparel, home textiles, and technical textiles, with many showcasing innovative and sustainable products.

The Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) is organised by Messe Frankfurt (HK) Ltd and the Vietnam Trade Promotion Agency (VIETRADE), covering the entire textile industry value chain.

In the presence of CEO Eelco Spoelder, Autoneum opened its new production facility in Pune in Western India on August 28, 2024. The opening of the third plant in the key automotive market of India is in line with the Company’s strategic focus on future profitable growth with a particular emphasis on Asian growth markets. Series production of carpet systems, interior trim, wheelhouse outer liners, e-motor encapsulations and other noise protection components for local and international vehicle manufacturers has already begun.

The plant in Pune in the western Indian state of Maharashtra is wholly owned by Autoneum and complements the existing production facility in Behror near New Dehli in the north and the joint venture plant in Chennai in the south of India. During the inauguration ceremony in Pune, Autoneum CEO Eelco Spoelder said: “With the opening of our new plant, Autoneum gains access to the third of the four major automobile production centers in India. By expanding our presence in this strategically important region, we can further strengthen our position in Asia, the world’s largest automotive market.”

The building spans an area of 7 500 square meters and includes modern production equipment. The Pune plant will supply both local and international customers with noise-reducing lightweight components for the interior and exterior of vehicles of all drive types. Pune will be the first Autoneum plant in India with the capability to produce Hybrid-Acoustics PET felts for e-motor encapsulation. Components made of Hybrid-Acoustics PET are characterized by their lightweight construction and noise protection that are optimized for electric vehicles. They consist entirely of PET, which is largely obtained from recycled fibers, and thus meet customer demand for environmentally friendly mobility solutions.

As announced in March, Pune is one of two plants that Autoneum is opening this year in the important Asian growth markets of China and India. The new joint venture plant in Changchun in the northern Chinese province of Jilin will ramp up production of inner dashes, interior floor insulators and other NVH (noise, vibration, harshness) components for European, Japanese and Chinese car manufacturers from the end of 2024. Both new plants in Pune and Changchun are strategically located thanks to their proximity to important customers. In India, Autoneum supplies European, American, Indian, Japanese and Korean vehicle manufacturers.

As a traditional textile country, India has also established a strong position in the field of manmade fiber production in recent decades. The West Asian country has now become the second largest polyester yarn manufacturer in the world. The Indian textile industry covers the entire value chain from the melt to the finished textile end product.

The technical textiles sector in particular is regarded as a future market. With an average growth rate of 12% since 2013, this dynamic sector accounts for around 13% of the entire Indian textile and clothing market, according to the government organization Invest India. The market volume has almost doubled in the past ten years. In India, the production of industrial yarn has so far relied heavily on polyamide. Oerlikon Barmag has a strong market position here. "In recent years, we have commissioned plants for numerous customers," says Dr. Wolfgang Ernst, Head of Sales of the Oerlikon Business Unit Manmade Fibers Solutions.

Increasing demand for industrial polyester yarns
The construction boom and the increasing use of geotextiles and industrial textiles in various infrastructure projects as well as in agriculture and aquaculture show enormous growth potential. This is supported by the government's 2021 industrial development program, which includes technical textiles as one of ten priority sectors. The program is based on reducing dependence on imports. Until now, a large proportion of the technical textiles and yarns required in the country have been imported.

The trend towards high-quality technical textiles for the domestic market has also been noted by the Remscheid-based machine and plant manufacturer. "We are receiving more and more inquiries from Indian customers for spinning systems for industrial yarns," says Dr. Wolfgang Ernst. "What is new is the great interest shown by companies from downstream processes that are looking for backward integration. We attribute this to the stricter regulations of the Bureau of Indian Standards. Until now, industrial yarns were mainly imported from China. In order to guarantee the quality of the processed yarns, this has been strictly regulated by the government since last year. It therefore makes sense for Indian textile producers to enter the yarn manufacturing sector." This development was also noticeable at this year's Techtextil in Frankfurt, where the experts from Oerlikon Barmag were able to hold a disproportionately high number of technical discussions with Indian customers and interested parties.

The flexible spinning concepts of Oerlikon Barmag enable a variety of possible yarn products for numerous applications. The portfolio includes processes for the production of polyamide and polyester yarns with the required physical properties for a wide range of end applications, whether HMLS yarns for car tires, yarns for geotextiles, safety belts or even airbags.

In-store Asia, a trade fair for retail resources and investments in store design, visual merchandising and in-store marketing on the Indian subcontinent will again be held in Mumbai from 13 to 15 June 2024. Over the course of the 15 years of its existence it has become established as the biggest get-together of retail decision-makers in India. Here, over 4,500 players from retail, consulting and services, manufacturers as well as retail solution providers come together.

Visitors to In-store Asia have the opportunity to discover a wide variety of exhibitors showcasing their products and solutions for the retail sectors including:

• Point-of-Purchase (POP) displays and interactive flatscreens
• Visual Merchandising (VM) and store fittings
• Signage and graphic design solutions
• Retail technologies for improving customer retention
• Tailor-made store design services
• Start-up initiatives for the retail sector

The 2-day conference at In-store Asia provides a platform for discussions about current retail trends in India and the world over. More than 40 key speakers from India and abroad will share their forecasts, latest trends and use cases on the topics of retail markets, retail experience design, sustainability, visual merchandising, retail technology and store fitting under the inspiring motto “Connected, Collaborative, Conscious”.

Highlights at the trade fair amongst others include the VM&RD Retail Design Awards and the VM Challenge, two events that honour special achievements and innovations in visual merchandising and store fitting. The VM&RD Retail Design Awards acknowledge outstanding store fitting projects in a total of 24 categories. The VM Challenge is a unique live window display contest for the visual merchandising community where six teams compete to dress a window on a given theme.

• GOTS Version 7.0 released
• GOTS certified entities grow by 8% and expand to 89 countries
• GOTS releases Due Diligence Handbook for certified entities
• Farm-Gin Registry implemented in India, creating a direct link and better evaluation of incoming data
• GOTS collaborates with European Space Agency and Marple for AI organic cotton project
• #Behindtheseams campaign reaches 21 million+ unique individuals

The Global Organic Textile Standard (GOTS), managed by non-profit Global Standard, recognises 2023 as a year of significant milestones. From expansion of GOTS-certified facilities to the release of a new standard version, GOTS remained a beacon for businesses navigating changing legislation, social and environmental demands.

Coming out of one of the strongest years for GOTS, 2023 culminated with 25 GOTS-approved certification bodies reporting a noteworthy 14,676 certified facilities (an 8% growth from 2022) in 89 countries.

Ushering in GOTS Version 7.0
As of 1 March, facilities that become GOTS-certified will operate under the new GOTS Version 7.0, released in March 2023 with a one-year transition period. GOTS Version 7.0 and its accompanying Implementation Manual provides a comprehensive solution for companies who want to produce organic textiles and be supported to ensure compliance with environmental and human rights due diligence along the entire value chain, from field to finished product.

GOTS Version 7.0 also introduced a six-step due diligence process and handbook that equips GOTS-certified operations to proactively identify, assess and mitigate adverse impacts throughout their value chains.

Looking to the future
GOTS initiated in 2023 two major projects in India, the globe’s largest producer of organic cotton. The Farm-Gin Registry was introduced for the 2022-2023 harvest season, which acts as a link between farm and gin and is a tool to strengthen integrity by collecting organic raw seed cotton data producing farm or farm group.

GOTS, the European Space Agency (ESA) and software company Marple launched a new project that aims to show the potential for remote satellite monitoring of organic cotton cultivation systems. The project trained artificial intelligence (AI) to use ESA satellite data to detect cotton fields across India and automatically classify them according to their cultivation standard. By integrating standardised yield metrics, this innovative approach will enable GOTS to generate realistic estimates of organic cotton yields in specific areas. In addition, the project is expected to empower GOTS to recognise cotton fields that have not yet obtained organic certification but possess the potential for a transition to organic cultivation. The first results of the project will be announced in June.

Educating the consumer
GOTS, in its ongoing commitment to stakeholder education, orchestrated in November an immersive 360-degree awareness and educational campaign. Successfully engaging both consumers and industry professionals, the initiative shined a spotlight on GOTS-certified companies and their products, which empowered consumers to make more conscientious choices while shopping. With an impressive turnout of over 250 certified entities, the campaign made a significant global impact, reaching more than 21 million unique individuals worldwide.

• Autoneum is expanding its production capacities in Asia with two new plants in Changchun in the Chinese province of Jilin and Pune in Western India.

The world's largest automotive market Asia is one of the most important sales regions for vehicle manufacturers and suppliers as well as a pioneer for new forms of e-mobility. Autoneum already supplies both international and local vehicle manufacturers in Asia with multifunctional lightweight components for noise and heat protection, supporting them in their commitment to sustainable mobility. Autoneum is expanding its production capacities in the key automotive hubs of China and India to increase its presence and thus its proximity to customers in these important production centers.

Autoneum’s new plant in China, which will be operated as a joint venture, will be located in Changchun in the northern Chinese Jilin province, which is one of Asia’s largest car production centers. The proximity to key local and international vehicle manufacturers makes Changchun a strategically important and attractive location for Autoneum. The plant will help to increase market share with European, Japanese and Chinese car manufacturers with products for light vehicles and also support the expansion of the Company’s business with components for commercial vehicles in this region. The project is supported by the local authorities in China. From the end of 2024, the plant will ramp up production with first samples for already awarded business for inner dashes, interior floor insulators and other NVH (noise, vibration, harshness) components for cars of all drive types.

Autoneum is furthermore expanding its local presence in Western India with a fully owned production facility in Pune in the state of Maharashtra. The Company already operates two locations in India: one in Behror near New Delhi in the north and a joint venture plant in Chennai in the south. Thanks to the new Pune plant, Autoneum will now be present in the north, west and south of the country and gain access to the third of four major automobile production centers in India. Orders have already been received and the plant in Pune will start manufacturing carpet systems, interior trim, wheelhouse outer liners, e-motor covers and other noise protection components as of the second quarter of 2024. From the 7 500 square meter building, Autoneum will supply international as well as local car manufacturers with a particular focus on Indian and Korean vehicle manufacturers.

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).

ACIMIT president Marco Salvadè commented the data: “The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market.” Nonetheless, the orders index abroad shows a slight increase. “We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal.”

Perlon® – The Filament Company, a manufacturer of synthetic filaments headquartered in Munderkingen, Germany, celebrated the opening of its new plant in Goa, India. The event marked a significant milestone in Perlon®‘s global expansion strategy and underlines the company’s commitment to growth and innovation.

The plant in Goa was made possible by the recent acquisition of Shaun Filaments, a renowned Indian manufacturer of filaments. The integration of the Shaun Filaments production facility into the Perlon® Group not only offers the opportunity to strengthen market presence, but also to expand capacities and improve production processes.

The Perlon® plant in Goa will play a key role in the production of synthetic filaments for various industries, including paper, technical textiles, brushes, cosmetics and dental care. The acquisition of Shaun Filaments brings not only experienced professionals but also established production lines and technologies to the company.

Florian Kisling, CEO of Perlon®, expressed his enthusiasm about the successful purchase: “The opening of this plant in Goa is a crucial step in our global growth strategy. We are proud to strengthen our presence in Asia while delivering the quality and innovation that Perlon® is known for worldwide.”

The GoodTextiles Foundation has implemented a school library in the local primary school in Tamil Nadu, India. As a result, the children now have unrestricted access to additional literature.

At the PUPS Naranikuppam primary school in Tamil Nadu, the GoodTextiles Foundation has already provided access to separate sanitary facilities and clean drinking water. Now, with the help of the foundation, a school library has also been set up. The GoodTextiles Foundation is supporting the project with a total of €3,900.00, of which €1,425.00 comes from a donation from Dibella, which was realised with the greenhouse gas premium. The remainder was financed with donations already received.

A large selection of books tailored to the age and interests of the pupils was purchased for the library, as well as a shelf and a seating area. With a new Smart TV, the children can now also be introduced to digital media and how to use it. An air conditioning system provides pleasant temperatures to improve learning conditions. The newly tiled floor, new glass windows and a new glass door also improve the building-specific conditions.

The school is located directly next to a sewing company where the single mothers of the pupils work.

In 2016, the textile company Dibella established the GoodTextiles Foundation with the aim of making textile value chains more sustainable. It raises donations and implements its own funding projects to benefit people at all stages of the textile industry.

Leveraging insights from Wealth in Waste, Fashion for Good released a toolkit designed to revalorise textile waste in India.

"The Sorting for Circularity India toolkit is a milestone in our journey towards a waste-free world. We have mapped the textile waste landscape, unpacking the huge potential, as well as the roadblocks and commercial opportunities in India’s textile waste industry. We are excited to move beyond rhetoric with this powerful coalition of partners and translate our findings into a roadmap for concrete actions", said Katrin Ley, Managing Director, Fashion for Good.

In 2021, Fashion for Good launched the Sorting for Circularity India Project to organise the Indian textile waste market in a three-phase approach so as to streamline, strengthen and foster the Indian textile waste market to drive the transition to a more circular economy that recaptures value to its maximum potential.

The project brought together various industry players including Fashion for Good partners adidas, Levi Strauss & Co., PVH Corp., Target, Arvind Limited, Birla Cellulose, and Welspun India, as well as Fashion for Good innovators Reverse Resources, PICVISA, and Matoha; H&M, Primark, and TESCO also joined as external partners. The project is supported through catalytic funding provided by Laudes Foundation and IDH, and knowledge support from Canopy and Circle Economy Foundation.

Drawing upon the invaluable insights gained throughout the project, Fashion for Good unveils a toolkit designed to harness the untapped potential of textile waste in India. Together, these resources provide valuable insights, assessments, and practical guidance to advance recycling in India's textile industry.