16:21 | 12/04/2018 Cooperation
(VEN) - The Indian Consulate General in Ho Chi Minh City organized a B2B meeting on April 11 in Ho Chi Minh City to promote bilateral textiles cooperation. The event coincided with the start of “SaigonTex 2018" exhibition where 19 Indian companies are participating.
There has been an impressive growth in bilateral trade in the area of textiles between the two countries during the year 2017 over 2016 (from US$423 million to US$607 million; in three segments of Cotton, Fiber, Yarn and Fabrics).
Vietnam had imported US$19 billion worth of input materials, especially yarn and fabric. Indian textile exports to Vietnam in 2017 amounted to US$429 million (showing growth of about 44 percent over 2016), while Indian textile imports from Vietnam reported a growth of 42 percent over 2016, amounting to US$178 million.
Dr. K. Srikar Reddy, Indian Consul General in Ho Chi Minh City said: “Vietnam’s textile sector has set an achievable export target of US$ 36 billion this year and US$50 billion by 2020; there is a lot of potential for trade in the area of textiles and garments between our countries.” India is one of the suppliers of high-quality materials, fabrics, and machinery at most competitive prices in the world. “Cooperation in the area of textiles and garments has been identified as a priority sector for cooperation between the both countries.” The Indian companies would like to work in coordination with the Vietnamese enterprises to develop our complementary strengths and business networks benefitting textile industries in both countries.
According to the Indian government estimates, India-Vietnam bilateral trade during April 2017 to Jan 2018 reached US$ 10.39 billion; and has already exceeded the US$10.13 billion achieved during April 2016 – March 2017. Trade and commercial links have been identified as a strategic objective by the leadership of our two countries at the highest level and the significant growth achieved during last year shows the level of trust between the business establishments.
The Vietnamese companies should explore the gigantic market of 1.3 billion people in India, where upwardly mobile huge section of customer base is creating huge demand, especially in the textile and garment sectors. Government of India allows 100 percent FDI under the automatic route in many sectors, including textiles, and promotes ‘Make in India’, which allows greater penetration of Indian market. Under automated route, International investors can invest without prior approval of the Indian Government. Vietnamese companies can take advantage of policies and ready customer base by investing in production of Yarn, Fabric, readymade garments etc. in India.