1、BANGLADESH CAMBODIA CHINA INDIA INDONESIA PAKISTANPHILIPPINES THAILAND TURKEY VIETNAM CENTRAL AMERICACOUNTRY SOURCINGREPORTNovember 2022Country overviewSourcing&industry updatesMinimum wage comparisonsGlobal trade policy regimeInput price trendsMacroeconomic dataHelen Chin,Sophie Zhang,Winnie Lo,Wil

2、liam Kong,Marco Chen,Doris FungIssue 20 COUNTRY SOURCING REPORT ISSUE 20 EXECUTIVE SUMMARY Preparing for a Highly Uncertain Future:Stay Resilient and Flexible While the negative impacts of COVID-19 are receding,the Russia-Ukraine war that started in February this year has created new and difficult c

3、hallenges to the already fragile global supply chains.The war has caused severe disruptions to traditional logistics routes,impeding the flow of goods and adding to inflationary pressures for energy,food,and other commodities.In the US,for example,inflation remains persistently high,and hit an annua

4、lized rate of 9.1%in June,the highest level in more than 40 years.The apparel and footwear supply chain is under pressure from soaring manufacturing and sourcing costs.Most notably,global shortage of cotton has driven the spikes in cotton prices,which,as measured by the Cotlook A Index(Far East),cli

5、mbed to an 11-year high in early May,before falling back in recent months due to weakened global demand and increased cotton production.Many apparel sourcing destinations have also substantially raised minimum wages to support their low-paid workers through the rising cost of living.As of October 20

6、22,19 out of 23 garment-producing countries monitored by Fung Business Intelligence had increased minimum wages,including Cambodia,China,Egypt,Guatemala,Haiti,Honduras,India,Indonesia,Kenya,Lesotho,Malaysia,Mauritius,Mexico,Nicaragua,Pakistan,the Philippines,Thailand,Turkey,and Vietnam.Among them,Tu