08:32 | 21/06/2018 Cooperation
(VEN) - Strengthening cooperation with India is important for the Vietnamese textile and garment industry to improve its competitiveness and increase its exports. To that end, a conference, entitled “Textiles: India-Vietnam Cooperation, Partners in Progress”, was held recently by the Consulate General of India in Ho Chi Minh City with the goal of boosting trade relations between the two countries in textiles.
K. Srikar Reddy, Indian Consul General in Ho Chi Minh City, said both Vietnam and India have a developed textile and garment industry, and are among the world’s top-5 textile and garment exporters. Vietnam is an important part of the Indian government’s Look East policy. India has invested about US$814 million through 176 projects in Vietnam, ranking 28th among 126 countries and territories investing in the country, he said. Indian businesses exported textiles and garments worth US$429 million to Vietnam in 2017, up 44 percent from 2016, and accounting for a small part of Vietnam’s textile and garment material import demand, said the consul general.
Many Indian textile and garment companies have invested in Vietnam, and Vietnamese textile and garment enterprises can develop ready-made garment production in India to meet the need of its 1.3 billion people. The Indian government allows wholly foreign owned direct investment in many areas, including textile and garment, while promoting a “Made in
India” campaign to increase penetration into the Indian market. Under India’s “automatic route” policy, foreign investors can invest in India without seeking advance government approval. Vietnamese companies can take advantage of this policy and the market potential to produce yarns, fabrics and ready-made garments in India, said K. Srikar Reddy.
Indian businesses are increasingly interested in investing in Vietnam and trading with its enterprises. In early April, 19 Indian companies participated in the Saigontex 2018 exhibition in Ho Chi Minh City to look for investment opportunities. Truong Van Cam, Vice Chairman and General Secretary of the Vietnam Textile and Apparel Association (VITAS), said Vietnam’s textile and garment industry faces major shortages of material. Vietnamese textile and garment enterprises annually import all the cotton they need and 900,000 tonnes of fiber and fabric worth more than US$11 billion, while India is strong in cotton, fiber and fabric production. Thus, the potential is there for Vietnam and India to develop textile and garment cooperation.
Data of the General Department of Vietnam Customs show that in the first quarter of 2018, Vietnam imported cotton, fiber and fabrics worth more than US$200 million from India.