13:22 | 02/03/2016 Investment
Vietnamese Ambassador to India Ton Sinh Thanh has called on Indian firms to invest in apparel production and supply in Vietnam during an investment promotion event with northern Indian textile mills in Ludhiana, Punjab State, India.
Vietnamese Ambassador to India Ton Sinh Thanh at the event (Source: VNA)
Thanh underscored opportunities created when Vietnam joined the Trans-Pacific-Partnership (TPP) agreement, which allows Indian apparel firms that invest and run their production in Vietnam to enter leading markets such as the US, the EU, Japan and Canada with a zero tariff.
General Director of the Export-Import Bank of India (Exim Bank) Mukai Sarkar, who conducted a fact-finding trip in Vietnam, highlighted favorable conditions for investment in Vietnam such as a convenient infrastructure, competitive labour costs, central and local incentives to stimulate investment on land leasing, and tariffs.
He also mentioned about Vietnam’s commitments on reform and a friendly social environment in the country.
To bolster bilateral cooperation in the sector, the Indian Government has offered a 300 million USD preferential credit for its businesses’ projects in apparel in Vietnam within a decade.
The event was jointly organised by the Vietnamese Embassy in India and the Export-Import Bank of India (Exim Bank) with participation from more than 30 members of the Northern India Textile Mills’ Association (NITMA), aiming to bolster Indian’s investment in the apparel sector in Vietnam.
The February 25 event also aimed to seek investments for Cambodia, Laos, and Myanmar, which, together with Vietnam form the CLMV region.
Punjab State has strength in cotton growing and apparel production./.