FT Turkey Summit 2015: Defining for the Growth of Turkish Textile Industry

FT Turkey Summit 2015: Defining for the Growth of Turkish Textile Industry

Ataullah Al Farhan
Executive, Bangladesh Textile Today
Email: ftzataullah@gmail.com

It is known to all, for a country industry and commerce have always been seen as single body, as Industries are looked at as the trademark of the primary development. It is definitely the degree of industrialization that is considered the most proper sign of a nation's progress. Moreover, the proper strategy for growth has often been pictured as more or less a gradual shift from conventional sector to industry. In countries like Turkey there has been shocking growth of textile sector and thus, industrialization and economy spin around this sector more than any other sector. Following first two successful Turkey Summits in 2012 and 2014, the FT Turkey Summit 2015 international 1-day conference will be a meeting place for reviewing, highlighting and conferring the Turkey’s economy. It will bring new and veteran investors together with senior government officials, to share their insights on the increasingly significant role of Turkey on the global stage, and the positive shifts in the political and business landscape that are drawing international investors to its shores. This year’s Summit will focus on developments in Turkey’s energy sector, examine how trends in international monetary policy will affect the country’s economic prospects, highlight the most challenging issues currently facing international commercial interests in the country and overview some of the most exciting opportunities in Turkey’s growing digital economy.

FT Turkey Summit 2015

The textile and clothing industry was the first industrial sector that developed in Turkey. The establishment of customs union with the European Union gave a major boost to the industry in 1990s and it currently is the largest manufacturing subsector in Turkey in terms of production and employment. The role of textile and clothing industry has been reappraised and re-evaluated following its contribution to harmonious development and economic stability. The actual role of Turkish clothing sector has come to fore only in recent years, with Turkey becoming one of the major players in the global textile and clothing industry. As of today, Turkey ranks eighth in overall global cotton production and fourth in world cotton consumption. The country also ranks third in organic cotton production, only after India and Syria. With an estimated share of 3.4 percent, the Turkish clothing industry stands as the seventh largest supplier in the world and the third largest supplier to the European Union. Considering the overall textile sector including clothing, upholstery, et al Turkey is among the world's top ten exporters of textile and second largest supplier to European Union.

The significance of textile and clothing sector multiplies considering it plays a substantial role in stabilising the country's economy. The textile and clothing sectors hold approximately seven percent of the GDP and these sectors also contributed approximately 18.3 percent in total export volume in preceding year. As per statistics released by the Social Security Institution, the country has more than 52,000 textile and clothing companies giving employment to more than 918,000 people. With changing times, the Turkish textile and clothing industry has also shifted its focus from low value added commodities to high value added manufactured items and fashionable clothing items. Many of the major textile brands such as Esprit, H&M, Hugo Boss, S.Oliver, Adidas, Nike and Zara source their clothing from Turkey. These textile exports propelled the country to become the fourth largest clothing manufacturer in the world and number one in Europe.
 

Table- Turkey Textiles sector in figures

	2009	2010	2011	2012	2013 Total export in USD	2014 Total export in USD
GDP (TRY mn)	952,559	1,098,799	297,713	1,416,817	17.3 bn	18.4 bn
GDP (USD mn)	614,554	731,608	773,980	786,293
GDP real growth (%)	-4.8	9.2	8.8	2.2
Net foreign direct investment (USD mn)	8,411	9,038	16,047	12,387
Foreign capital inflow in manufacturing (USD mn)	1,642	923	3,573	4,392
Foreign capital inflow in textiles industry (USD mn)	78	94	148	375
Total exports (USD mn)	102,143	113,883	134,907	152,462
Total manufacturing exports (USD mn)	95,449	105,467	125,963	143,194
Textiles exports (USD mn)	9,559	10,932	12,920	13,259
Apparel exports (USD mn)	9,603	10,618	11,633	11,955
Total imports (USD mn)	140,928	185,544	240,842	236,545
Total manufacturing imports (USD mn)	111,031	145,367	183,930	176,235
Textiles imports (USD mn)	4,345	6,059	6,881	5,454
Apparel imports (USD mn)	1,764	2,338	2,748	2,282

In this summit Turkey’s privatization and construction plans to 2020 will be highlighted. Visitors will get to grips with the economic outlook in the EU and global context and get knowledge from key players about Turkey’s energy and renewables sector. It will create network with leading figures from the Turkish government and industry. Key note speakers including Mehmet Simsek, Finance Minister, Turkey, David Gardner, International Affairs Editor, Financial Times, Uzan Sabancı Dincer CBE, Chairman and Executive Board Member, Akbank, Turkey, Daniel Dombey, Turkey Correspondent, Financial Times. The Financial Times organizes this mammoth summit and this year it will be take place in 15 April in Istambul.

1:51 AM