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Page 1: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Dragon SourcingYour Tailored Approach to Emerging Markets

www.dragonsourcing.com

Study on Potential Sourcing Destinations of PE-PU

Bags- Sanitized Version

Page 2: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Table of Contents

2

1) Executive Summary – Polyester Resin production

2) Executive Summary – Exports

3) Executive Summary – Labour wages

4) Executive summary – Import & Export duty

5) Executive Summary- Attractiveness of country in terms of polyester availability

6) Country Profiles :

I. China

II. Colombia

III. Indonesia

IV. Mexico

V. Myanmar

VI. Turkey

VII. Vietnam

Page 3: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

HS Codes & Abbreviations

3

HS Code Description

4202.21.60.00 Handbags, whether or not with shoulder strap, including those without handle: Valued not over $20

each

5404.19.80.40 Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1

mm strip of synthetic textile materials of an apparent width not exceeding 5 mm made of polyesters.

5407.10.00.00 Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of HS

heading 5404: Of polyester, weighing not more than 170 g/m2 (619).

5407.51.00 Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading

5404: Other woven fabrics, containing 85 percent or more by weight of textured polyester filaments

ITC International Trade Center

INEGI Instituto Nacional De Estadistica Y Geografia (Mexico)

USITC United States International Trade Commission

DANE National Administrative Department of Statistics

JETRO Japan External Trade Organization

Abbreviations

The following are HS codes of categories close to synthetic polyester bags that are discussed in this report. Particular

focus is on HS 4202 series which deals with ‘Cut & Sew’ Bags

Page 4: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Executive Summary – Polyester Resin Production

4

World Polyester Resin Production in 2012 (Thousand Tons)

Mexico

Colombia

Indonesia

Turkey

Vietnam

Inland China

China (excludingInland)

ROW

2008 2009 2010 2011 2012

China-Polyester resin production in thousand tons

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mexico Colombia Indonesia Turkey Vietnam InlandChina

Myanmar

Polyester resin production in thousand tons

Page 5: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Executive Summary - Exports

5

CHINA

COLOMBIA, INDONESIA, MEXICO, MYANMAR, TURKEY & VIETNAM

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 4202

$-

$50,000

$100,000

$150,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 5404

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 5407

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 4202

Mexico Colombia Indonesia

Turkey Vietnam Myanmar

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 5404

Mexico Colombia Indonesia

Turkey Vietnam Myanmar

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2008 2009 2010 2011 2012

Export Value (USD Thousand) ofHS Code 5407

Mexico Colombia Indonesia

Turkey Vietnam Myanmar

Source: ITC

Page 6: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Executive Summary – Labour wages -1

6

© 2013 Dragon Sourcing. All rights reserved.

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Mexico Colombia Indonesia Turkey Vietnam China Myanmar

Monthly Labour wages in USD in year 2012

Average Manufacturing wage Minimum wage

Source: Ministry of Labour & Social Security of all countries

Page 7: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Executive Summary – Labour wages -2

7

© 2013 Dragon Sourcing. All rights reserved.

$-

$100

$200

$300

$400

$500

$600

$700

$800

China provincial Monthly labour wages in USD in year 2012

Average Manufacturing wage Minimum wage

Average Provincial Manufacturing wage

Average Inland China Manufacturing wage

Average Pearl delta & Yangtze river delta

Manufacturing wage

*Pearl River Delta : Guangdong Province

Yangtze River Delta: Jiangsu, Shanghai & Zhejiang

Provinces.

Inland China: All provinces excluding Pearl river &

Yangtze river delta

Source: Ministry of Labour & Social Security of China

Page 8: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Executive Summary – Import & Export duty

8

© 2013 Dragon Sourcing. All rights reserved.

CountryImport Duty into USHS 4202.21.60.00

Import Duty into USHS 5404.19.80.40

Import Duty into USHS 5407.10.00.00

Import Duty into US 5407.51.00

Export Duty for Other HS 42 Series

Export Duty for Other HS 54 Series

China 10% 6.9% 13.6% 14.9% 0% 0%

Vietnam 10% 6.9% 13.6% 14.9% 0% 0%

Indonesia 10% 6.9% 13.6% 14.9% 0% 0%

Mexico 0% 0% 0% 0% 0% 0%

Turkey 10% 6.9% 13.6% 14.9% 0% 0%

Colombia 0% 0% 0% 0% 0% 0%

Myanmar 10% 6.9% 13.6% 14.9% 0% 0%

Source : Ministry of Trade & Commerce of all countries

United States International Trade Commission

European Commission Taxation & Customs Union

Page 9: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Sourcing Attractiveness of ‘Cut & Sew Bags’- Summary

9

© 2013 Dragon Sourcing. All rights reserved.

Country

Avgmanufacturing

Labour Rate (USD/ Month)

Duties (USD) of HS

4202216000)

Polyester Production (in million

metric tons)

Comments

Attractiveness as

Sourcing Destination

Inland China X

Export: NilImport to US:

10%X

With a production of 3.7 million metric tons, Inland China produced about 13% of the total Chinese

production of Polyester in 2012. Heilongjiang, ‘Polyester Cut & Sew’ bag hubs are seen in Fujian,

Sichaun & Shandong provinces in Inland China. Appears to be a good potential sourcing destination

Vietnam XExport: Nil

Import to US: 10%

XVietnam produced about 175 thousand metric tons of polyester resins in 2012. Most of the raw

material requited for ‘cut and sew bags’ are imported into the country. ‘Cut & sew’ bag hubs are in

HoChi Mi, Hanoi & Hue regions. Appears to be a medium sourcing destination as there are fewer

polyester ‘cut & sew’ bag producers as opposed to Inland China

Indonesia XExport: Nil

Import to US: 10%

XThe country produced about 1.5 million metric tons of polyester resins, accounting for almost 3.4%

of the world production in 2012. Indonesia is a good sourcing destination of HS 42 series including

‘cut & sew bags’. Hubs of Polyester based ‘Cut & sew’ bags are in Java and Tenggara regions

Mexico XExport: Nil

Import to US: Nil

X

Mexico produced about 0.5 million tons of polyester resins in 2012, accounting for almost 1% of the

total world production. As the domestic production of Polyester based ‘Cut & sew’ bags does not

meet the domestic demand, the country already imports them from China. ‘Cut & sew’ bag Hubs are

seen in Jalisco, Puebla, Nuevo Leon and Mexico city areas. Very few suppliers of ‘Cut & sew’ bags

are seen in the country

Turkey XExport: Nil

Import to US: 10%

X

Turkey produced about 260 thousand metric tons of polyester resins in 2012. However, the country

imports Polyester based ‘Cut & sew’ bags to meet domestic demand as domestic consumption is

higher than production. Polyester based ‘Cut & sew’ bag Hubs are seen in Izmir, Denizli, Bursa,

Adana, Kayseri, Istanbul & Ankara regions. Does not appear to be a very attractive sourcing

destination

Colombia XExport: Nil

Import to US: Nil

XColombia produced about 13 thousand metric tons of Polyester resins in 2012.Most of the polyester

produced go into different other applications. Polyester based ‘Cut & sew’ producers are very few in

number- they do not meet the domestic demand itself. Hubs are seen in Antioquia & Cundinamarca

regions. The country does not appear to be a sourcing destination

Myanmar XExport: Nil

Import to US: 10%

XMyanmar does not produce polyester resins. Only Non- polyester based HS 4202 products are

mostly produced in Yangoon & Mandalay regions. The country is not a potential sourcing destination

of Polyester based ‘Cut & sew’ bags

Good Sourcing Destination Medium Sourcing Destination Not a potential Sourcing Destination

Page 10: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Country Profiles

10

© 2013 Dragon Sourcing. All rights reserved.

Page 11: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

China – Market Trends

11

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

China

Import duty into

USA

4202.21.60.00 Nil 10%

5404.19.80.40 Nil 6.9%

5407.10.00.00 Nil 13.6%

5407.51.00 Nil 14.9%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2008 2009 2010 2011 2012

Polyester Resin production in China in Thousand tons

Polyester Resin production in Thousand tons -2012

Pearl River Delta

Yangtze River Delta

Inland China

Pearl River Delta : Guangdong Province Yangtze River Delta: Jiangsu, Shanghai & Zhejiang Provinces

Fujian, Sichuan & Shandong Provinces collectively account for 10% of Inland Polyester production with Fujian alone accounting for 7%.

$-

$100

$200

$300

$400

$500

$600

2008 2009 2010 2011 2012

Inland China - Monthly Labour wages

Average wage in Manufacturing Industry Minimum Wage

Source: askci.com

Source: mohrss.gov.cn

Source: askci.com

Page 12: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Polyester production by provinces - 1

12

© 2013 Dragon Sourcing. All rights reserved.

0 5,000 10,000 15,000 20,000

Zhejiang

Jiangsu

Fujian

Polyester resin production in the Top 3 provinces (Thousand tons)

2012

2011

2010

2009

- 100 200 300 400 500 600

Sichuan

Guangdong

Shandong

Shanghai

Henan

Tianjin

Anhui

Liaoning

Jilin

Jiangxi

Hainan

Heilongjiang

Hebei

Hubei

Chongqing

Shanxi

Yunnan

Hunan

Xinjiang

Beijing

Polyester resin production in remaining 20 provinces (Thousand tons)

2012

2011

2010

2009

Source: askci.com

Page 13: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Production volume map by provinces - 2012

13

© 2013 Dragon Sourcing. All rights reserved.

Xinjiang

Gansu

Jiangxi

Zhejiang

BEIJING

Jiangsu

Guangxi

Hunan

Hubei

Qinghai

Ningxia

Shaanxi

Anhui

Fujian

Neimongu

ShanxiShandong

Xizang

Sichuan

Yunan

Guizhou

Henan

Jilin

Liaoning

Hebei

Guangdong

Gansu

SHANGHAI

Hong Kong

Taiwan

Heilongjiang

CHONGQING

Sichuan

> 10 M Ton

1 M Ton - 10 M Ton

100,000 Ton – 1 M Ton

< 100,000 Ton

Page 14: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

14

© 2013 Dragon Sourcing. All rights reserved.

Xinjiang

Gansu

Jiangxi

Zhejiang

BEIJING

Jiangsu

Guangxi

Hunan

Hubei

Qinghai

Ningxia

Shaanxi

Anhui

Fujian

Neimongu

ShanxiShandong

Xizang

Sichuan

Yunan

Guizhou

Henan

Jilin

Liaoning

Hebei

Guangdong

Gansu

SHANGHAI

Hong Kong

Taiwan

Heilongjiang

CHONGQING

Sichuan

China- Supplier hubs for HS 4202

Page 15: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

China – HS 4202- Exports & Imports

15

© 2013 Dragon Sourcing. All rights reserved.

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

United States of America

27%

Japan7%

Germany6%Hong

Kong5%

United Kingdom

4%

Rest of world51%

HS 42- Export market of China 2011

Source: ITC

United Arab

Emirates6%

Pakistan5%

Vietnam5%Brazil

5%

South Korea4%

Rest of world75%

HS 54 - Export market of China 2011

• China appears to be good sourcing destination of Polyester resins

and Cut & Sew bags. However, non delta river provinces contribute

to only 1% of the total production of Polyester resin

• There appears to be significant government regulation when it

comes to the export of polyester products from China

Page 16: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

China – HS 5404 & 5407- Exports & Imports

16

© 2013 Dragon Sourcing. All rights reserved.

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: International Trade Center

Page 17: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Textile manufacturing contributes to about 5.3% of

Colombia’s total manufacturing output and employs about

200,000 workers directly and another 600,000 indirectly,

which represents 13.3% of total employment in the

manufacturing sector.

Garments make up almost 72% of Textile and Apparel

Industry while the remaining 28% is made up by fibers and

fabrics.

The local textile production does not meet the domestic

demand, therefore Colombia imports more than 50% of

textiles used in local market

However, the country produced just about 14 thousand

tons of polyester in 2012

Colombia – Market Trends

17

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Colombia

Import duty into

USA

4202.21.60.00 Nil 0% (NAFTA)

5404.19.80.40 Nil 0% (NAFTA)

5407.10.00.00 Nil 0% (NAFTA)

5407.51.00 Nil 0% (NAFTA)

* NAFTA : North American Free Trade Agreement

$246 $265 $274 $285 $301

$-

$100

$200

$300

$400

$500

$600

$700

$800

2008 2009 2010 2011 2012

Colombia – Monthly Labour wages

Average wage in Manufacturing Industry Minimum Wage

-

5.00

10.00

15.00

20.00

25.00

2008 2009 2010 2011 2012

Polyester Resin production in Thousand tons

Source: dane.gov.co

Source: inexmoda.org.co

Page 18: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Colombia- Supplier hubs for HS 4202

18

© 2013 Dragon Sourcing. All rights reserved.

Colombia's clothing and textile industry is one of the

largest and most experienced in Latin America.

According to the estimates, cotton textiles

dominates the Industry with a share of approximately

43%; yarns and woven fabrics 21 %; knit products

19 %; and man-made fiber products 8 %. The textile

industry produces annually approximately 800

million square meters of cotton, polyester, nylon,

viscose and wool fabrics, as well as twill, satin,

cotton poplin and polyester blends.

Medellin is Colombia's clothing centre and accounts

for 70% of garment production and 38% of textile

production, mainly cottons.

The country's capital, Bogota, generates 53% of all

textile production, mainly knitted fabrics and man-

made fibers and fabrics, and 23% of apparel

production, mainly knitwear.

Supplier Hubs

Page 19: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Colombia – HS 4202- Exports & Imports

19

© 2013 Dragon Sourcing. All rights reserved.

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import United States of America

64%

Venezuela8%

Mexico4%

Ecuador3%

Panama2%

Rest of world19%

HS 42- Export market of Colombia 2011

Source: ITC

Page 20: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Colombia – HS 5404 & 5407- Exports & Imports

20

© 2013 Dragon Sourcing. All rights reserved.

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: ITC

Page 21: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Colombia – HS 54- Export Markets

21

© 2013 Dragon Sourcing. All rights reserved.

Peru29%

Ecuador20%

Venezuela13%

Chile6%

Mexico6%

Rest of world26%

HS 54 - Export market of Colombia 2011

Source: ITC

Page 22: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Indonesia is a reasonably large producer of synthetic fibers in Asia.

The country produced about 1.5 million tons of polyester, accounting

for 3.4% of the world production in 2012

The country has 18 companies producing synthetic fiber with total

capacity of 588,000 tons of polyester staple fiber, 833,000 tons of

polyester filament yarn, and 32,000 tons of nylon filament yarn per

year.

These factories are located in West Java, Central Java and East

Java.

Big business players in synthetic fiber industry include Polysindo,

Indorama, GT Petrochem (Polychem), and TIFICO. Polysindo is the

largest with an annual capacity to produce 350,000 tons of PFY and

PSF, followed by Indorama with a capacity of 318,000 tons,

Polychem with a capacity of 169,000 tons and TIFICO with a

capacity of 138,000 tons a year.

Indonesia – Market Trends

22

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Indonesia

Import duty into

USA

4202.21.60.00 Nil 10%

5404.19.80.40 Nil 6.9%

5407.10.00.00 Nil 13.6%

5407.51.00 Nil 14.9%

$-

$100

$200

$300

$400

$500

$600

2008 2009 2010 2011 2012

Indonesia – Monthly Labour Wages

Average wage in Manufacturing Industry Minimum Wage

Source: JETRO

Source: yarnsandfibers.com

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2008 2009 2010 2011 2012

Polyester Resin production in Thousand tons

Page 23: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Indonesia- Supplier hubs for HS 4202

23

© 2013 Dragon Sourcing. All rights reserved.

Riau

Islands

Aceh

North

Sumatra

Riau

West

Sumatra Jambi

Bengkulu

South

Sumatra

Bangka-

Belitung

Lampung

West

Kalimantan

Banten

Jakarta

West

Java

Yogyakarta

Central

Java East

Java

Bali

Central

Kalimantan

East

Kalimantan

South

Kalimantan

West Nusa

Tenggara

East Nusa

Tenggara

South

Sulawesi

Southeast

Sulawesi

West

Sulawesi

Central

Sulawesi

North

SulawesiGorontalo

Maluku

North

Maluku

West

Papua

Papua

Supplier Hubs

Page 24: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Indonesia – HS 4202- Exports & Imports

24

© 2013 Dragon Sourcing. All rights reserved.

$-

$50,000

$100,000

$150,000

$200,000

$250,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

United States of America

46%

Japan6%

Italy6%South Korea

5%

Netherlands5%

Rest of world32%

HS 42- Export market of Indonesia 2011

Source: ITC

Page 25: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Indonesia – HS 5404 & 5407- Exports & Imports

25

© 2013 Dragon Sourcing. All rights reserved.

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: ITC

Page 26: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Indonesia – HS 54- Export Markets

26

© 2013 Dragon Sourcing. All rights reserved.

Turkey21% United Arab

Emirates11%

Japan7%

Saudi Arabia6%

Thailand5%

Rest of world50%

HS 54- Export market of Indonesia 2011

Source: ITC

Page 27: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

The Mexican textile industry accounts for about 6% of the country’s

total manufacturing GDP. These sectors account for nearly 20% of

all manufacturing employment in Mexico and are concentrated in the

central and north eastern parts of the country.

Its geographical location and extended network of Free Trade

Agreements (FTAs) make it a strategic hub from which to export to

major markets in North and South America, the EU, EFTA and

beyond.

The country produced about 542 thousand tons of polyester resins

in 2012, accounting for close to 2% of the total world production

Mexico – Market Trends

27

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Mexico

Import duty into

USA

4202.21.60.00 Nil 0% (NAFTA)

5404.19.80.40 Nil 0% (NAFTA)

5407.10.00.00 Nil 0% (NAFTA)

5407.51.00 Nil 0% (NAFTA)

* NAFTA : North American Free Trade Agreement

$-

$100

$200

$300

$400

$500

$600

$700

2008 2009 2010 2011 2012

Mexico - Monthly Labour Wages

Average wage in Manufacturing Industry Minimum Wage

440

460

480

500

520

540

560

580

600

2008 2009 2010 2011 2012

Polyester Resin production in Thousand tons

Source: inegi.org.mx

Source: inegi.org.mx

Page 28: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Mexico- Supplier hubs for HS 4202

28

© 2013 Dragon Sourcing. All rights reserved.

Supplier Hubs

Page 29: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Mexico – HS 4202- Exports & Imports

29

© 2013 Dragon Sourcing. All rights reserved.

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

United States of America

91%

France1%

United Kingdom

1%

Guatemala1%

Rest of world6%

HS 42- Export market of Mexico 2011

Source: ITC

Page 30: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Mexico – HS 5404 & 5407- Exports & Imports

30

© 2013 Dragon Sourcing. All rights reserved.

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: ITC

Page 31: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Mexico – HS 54- Export Markets

31

© 2013 Dragon Sourcing. All rights reserved.

United States of America

68%

Colombia7%

Canada6%

Guatemala3%

United Kingdom3%

Rest of world13%

HS 54 - Export market of Mexico 2011

Source: ITC

Page 32: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

No known production of Polyester resins in

Myanmar

Myanmar appears to not produce polyester. Also, the

Synthetic resins Industry (non polyester) in Myanmar is

still underdeveloped mainly due to the lack of Investment

by the government and the long period of embargo by the

western countries. The country does not appear to be a

good sourcing destination

Roughly 300 suppliers in garment and textile mainly

focusing on cotton products only

Myanmar imports Polyester resin from neighbouring

countries like China, Thailand and Malaysia.

Majority of the garment suppliers in Myanmar are located

in Yangon and Mandalay regions

Myanmar – Market Trends

32

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Myanmar

Import duty into

USA

4202.21.60.00 Nil 10%

5404.19.80.40 Nil 6.9%

5407.10.00.00 Nil 13.6%

5407.51.00 Nil 14.9%

$-

$50

$100

$150

$200

$250

$300

2008 2009 2010 2011 2012

Myanmar – Monthly Labour wages

Average wage in Manufacturing Industry Minimum Wage

Source: JETRO

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Myanmar- Supplier hubs for HS 4202

33

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Yangon

Supplier Hubs

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Myanmar – HS 4202- Exports & Imports

34

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$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

South Korea74%

Bahrain7%

Singapore6%

India4%

Jordan3%

Rest of world6%

HS 42- Export market of Myanmar 2011

*Export value for 2010 : Not Available Source: ITC

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Myanmar – HS 5404 & 5407- Exports & Imports

35

© 2013 Dragon Sourcing. All rights reserved.

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

*Export value for 2010 : Not Available

**Export value for 2011 & 2012 < USD 20,000

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

*Import value for 2010 : Not Available

Source: ITC

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Myanmar – HS 54- Export Markets

36

© 2013 Dragon Sourcing. All rights reserved.

India38%

Indonesia17%

Thailand17%

South Korea14%

Malaysia13%

Rest of world1%

HS 54-Export market of Myanmar 2011

Source: ITC

Page 37: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Textiles industry accounts for about 6-7% of the Turkish

GDP

This sector alone accounts for 20% share in total export

volumes from Turkey. There are more than 40,000 textile

and clothing companies in Turkey with an estimated

workforce of 750,000 employees.

However, Turkey produced only about 260 thousand tons

of polyester resins in 2012 accounting for less than 1% of

the world production

Turkey – Market Trend

37

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Turkey

Import duty into

USA

4202.21.60.00 Nil 10%

5404.19.80.40 Nil 6.9%

5407.10.00.00 Nil 13.6%

5407.51.00 Nil 14.9%

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2008 2009 2010 2011 2012

Turkey – Monthly Labour Wages

Average wage in Manufacturing Industry Minimum Wage

Source: joi.or.jp

-

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2008 2009 2010 2011 2012

Polyester Resin production in Thousand tons

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Supplier hubs for HS 4202

38

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Supplier Hubs

Page 39: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Turkey – HS 4202- Exports & Imports

39

© 2013 Dragon Sourcing. All rights reserved.

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

Italy22%

Germany14%

Russia12%

United Kingdom

10%

France7%

Rest of world35%

HS 42- Export market of Turkey 2011

Source: International Trade Center

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Turkey – HS 5404 & 5407- Exports & Imports

40

© 2013 Dragon Sourcing. All rights reserved.

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: ITC

Page 41: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Turkey – HS 54- Export Markets

41

© 2013 Dragon Sourcing. All rights reserved.

Russian Federation

12%

Iran6%

United Kingdom6%

Germany6%

Belgium6%

Rest of world64%

HS 54 - Export market of Turkey 2011

Source: ITC

Page 42: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Vietnam’s polyester industry appears to be nascent, but

growing. The country produced about 175 thousand tons

of polyester resin in 2012, accounting for less than 0.5% of

the total world production of polyester

Vietnam – Market Trends

42

© 2013 Dragon Sourcing. All rights reserved.

HS CodeExport duty from

Vietnam

Import duty into

USA

4202.21.60.00 Nil 10%

5404.19.80.40 Nil 6.9%

5407.10.00.00 Nil 13.6%

5407.51.00 Nil 14.9%

$-

$50

$100

$150

$200

$250

$300

$350

$400

2008 2009 2010 2011 2012

Vietnam – Monthly Labour Wages

Average wage in Manufacturing Industry Minimum Wage

Source: JETRO

0.16

0.16

0.16

0.17

0.17

0.17

0.17

0.17

0.18

2008 2009 2010 2011 2012

Polyester Resin production in Thousand tons

Page 43: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Supplier hubs for HS 42

43

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1. Lai Chau

2. Lao Cai

3. Ha Giang

4. Son La

5. Yen Bai

6. Tuyen Quang

7. Bac Can

8. Cao Bang

9. Lang Son

10. Thai Nguyen

11. Vinh Yen

12. Viet Tri

13. Ha Dong

14. Ha Noi

15. Hung Yen

16. Bac Ninh

17. Bac Giang

18. Hai Duong

19. Ha Lang

20. Hoa Binh

21. Ha Nam

22. Hai Phong

23. Thai Binh

24. Nam Dinh

25. Ninh Binh

26. Thanh Hoa

27. Vinh

28. Ha Tinh

29. Dong Hoi

30. Dong Ha

31. Hue

32. Da Nang

33. Tam Ky

34. Kon Tum

35. Quang Ngai

36. Ply Cu

37. Quy Nhon

38. Tuy Hoa

39. Buon Ma Thuot

40. Nha Trang

41. Da Lat

42. Phan Rang-Thap Cham

43. Phan Thiet

44. Dong Xoal

45. Dong Nai

46. Tay Ninh

47. Binh Duong

48. Tan an

49. Ho Chi Minh Saigon)

50. Vung Tau

51. Long Xuyen

52. Cao Lanh

53. My Tho

54. Ben Tre

55. Rach Gia

56. Can Tho

57. Vinh Long

58. Tra Vinh

59. Soc Trang

60. Bac Lieu

61. Ca Mau

12

3

4

56

8

910

1112

21

25

13

14

17

7

47

48

53

61

5756

1516 18

19

2022

2324

26

27

28

29

30

3132

33

34

35

3637

38

39

40

41 42

43

44

45

46

49

5051 52

5455

60

5958

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Vietnam – HS 4202- Exports & Imports

44

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United States of America

27%

Japan12%

Germany10%

France7%

Belgium7%

Rest of world37%

HS 42- Export market of Vietnam 2011

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 4202

Export

Import

Source: ITC

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Vietnam – HS 5404 & 5407- Exports & Imports

45

© 2013 Dragon Sourcing. All rights reserved.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5404

Export

Import

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

2008 2009 2010 2011 2012

Export & Import by Value (USD thousands) ofHS Code 5407

Export

Import

Source: ITC

Page 46: Case Study on Potential Sourcing Destinations of PE-PU Bags- Sanitized Version

Vietnam – HS 54 – Export Markets

46

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Turkey29%

China14%

Thailand12%Taipei Chinese

8%

Indonesia6%

Rest of world31%

HS 54 - Export market of Vietnam 2011

Source: ITC