Global Fashion Brands Sign 23 MOU with ASEAN Suppliers

BANGKOK, 15 June, 2010 — Eight leading fashion brands from Europe and the United States have signed 23 memoranda of understanding (MOU) with Southeast Asian suppliers at an inaugural textile and apparel industry event in Singapore, June 3-4.

High-level sourcing personnel from AVON Products, Debenhams, Guess?, MANGO, M&S (Marks & Spencer), Max Mara, Polo Ralph Lauren, and VF Corporation participated in the one-to-one meetings format. The brands collectively account for more than US$32 billion in global retail sales.

They met with the owners and senior executives of 14 “virtual vertical factories” (VVFs), which are partnerships between textile mills and garment factories based in the Association of Southeast Asian Nations (ASEAN) region.

As members of the Source ASEAN Full Service Alliance (SAFSA), the VVF partnerships aim to set new international standards for production quality, speed-to-market, and value-added services.

SAFSA is a three-year pilot program with the objective of maximizing efficiencies along ASEAN’s textile and apparel industry supply chain and offering a value-added full-service product to global customers.

The global brands have agreed to work with the VVF partnerships through SAFSA. The MOU are expected to develop into lucrative commercial partnerships.

“My VVF partner and I are confident we can fulfill the buyers’ expectations and become long-term partners and stakeholders in their future,” said Mr. Chris Koh, Director of Singapore-based SL Ponie Pte Ltd.

AFTEX Chairman Emeritus Mr. Phongsak Assakul from Thailand said: “The brands I met at the Forum were enthusiastic about the potential benefits of the SAFSA program.”

Seven of the eight brands at the event said they were very confident that they would form long-term relationships with the VVFs they met at the first SAFSA Global Forum.

SAFSA was initiated and developed by USAID’s ASEAN Competitiveness Enhancement (ACE) Project in cooperation with the ASEAN Federation of Textile Industries (AFTEX).

“SAFSA is a key part of our strategy to enhance the competitiveness of ASEAN’s textiles and apparel industry,” said ACE Project Director Mr. R. J. Gurley.

“It’s about teamwork,” he said. “SAFSA members must commit to work closely with other companies within one or more VVF partnerships to produce and deliver quality full-service products on time and at reasonable prices.

Mr Gurley said that SAFSA would work closely with its VVF members to facilitate introductions and meetings with global buyers.

AFTEX Chairman Mr. Van Souieng said: “The end of the quota era and the global economic crisis has necessitated new ways of doing business.

“The move toward an ASEAN Economic Community, the strong support of our governments, and the unified commitment of our industry as represented by AFTEX, gives us the confidence to launch a new strategy.”

More than 80 people attended the inaugural SAFSA Global Forum, which was organized by the ACE Project and AFTEX member the Textile and Fashion Federation of Singapore (TaFf), with the financial support of Singapore’s Ministry of Trade and the Economic Development Board.

The SAFSA Global Forum is designed to be an annual event.

Interested ASEAN-based textile and apparel companies are encouraged to join the SAFSA program.

For more information, please contact safsa@ace-advance.com or visit www.SourceASEAN.com/safsa.

About AFTEX
The ASEAN Federation of Textile Industries (AFTEX) is a grouping of textile and garment associations of the 10 ASEAN member countries. Since 1977, AFTEX members have met regularly to discuss policies and implement ASEAN-wide projects, with the objectives of: Advocating a common position on international trade policies; Promoting intra-ASEAN trade, and; Promoting ASEAN textile and garment to the global marketplace.

About the ACE Project
The ASEAN Competitiveness Enhancement (ACE) Project is funded by the US Agency for International Development (USAID) and is part of the joint US State Department – USAID ASEAN Development Vision to Advance National Cooperation and Economic Integration (ADVANCE) program. ACE is enhancing the competitiveness and integration of ASEAN’s textile and apparel and tourism supply chains. Working with the ASEAN Federation of Textile Industries (AFTEX), the ASEAN Tourism Association (ASEANTA), the ASEAN Secretariat, and other stakeholders, ACE is identifying and removing constraints in the business environment that affect ASEAN’s competitiveness and integration.

ACE Project’s objectives in the textiles and apparel sector are to:-

• Enhance and promote ASEAN’s image and reputation in the global market as a reliable, full-package provider of quality textiles and apparel.

• Further integrate ASEAN’s textile and apparel supply chains.

• Enhance the competitiveness, quality, and innovation of select ASEAN textile and apparel supply chain corridors through reduced lead times and improved product capabilities.

AFTEX contact
Andrew Hong
Permanent Secretary General
ASEAN Federation of Textiles Industries AFTEX
C-9-4 Megan Avenue 1
189, Jalan Tun Razak
50450 Kuala Lumpur
Tel: +60 3 2162 1587
Fax: +60 3 2162 5148
www.sourceasean.com

ASEAN Competitveness Enhancement project
David Gillbanks
dgillbanks@ace-advance.com
Tel: (+66) 2229 4045 ext. 15
Mobile: (+66) 85 076 7686

Media queries
Ken Scott
ScottAsia Communications
Ken@scottasia.net
Mobile: (+66) 81 931 2753