15:35 | 06/09/2017 Investment
A delegation of the Vietnam National Textile and Garment Group (Vinatex) made a fact-finding trip to Armenia in late August to seek partners to develop production projects as Vietnam is the first country to sign a free trade agreement with the Eurasian Economic Union (EAEU) that includes Armenia.
|A garment factory in Vietnam (Photo: VNA)|
Vinatex General Director Le Tien Truong said during their stay, the group’s representatives held working sessions with a deputy foreign minister, the minister of economic development and investment, and some major businesses in Yerevan capital city of Armenia.
He said Vinatex will consider production and business cooperation with big companies of Armenia that have already had distribution networks in Russia and the EU. In the initial stage, the group will mainly contribute machinery and production administration.
At the meetings, the Armenian Government expressed its desire to cooperate with major firms with much experience in production management like Vinatex so as to revive the local garment industry and boost export.
It also promised to encourage investment attraction, create favourable conditions for foreign investors, and provide special mechanisms for Vietnamese investors through cooperation policies, multilateral and bilateral cooperation agreements, and granting of work visas, Truong added.
According to Vinatex, 94 businesses are operating in the textiles and garment industry of Armenia. The country exported 50 million USD and imported 170 million USD worth of textile and garment products in 2014.
Despite their small and outdated scale, Armenian firms have experience in working with big fashion brands of Italy and Germany such as La Perla, Moncler, Armani and Porsche.
The country has also benefited from a number of tax incentives thanks to free trade agreements when its products enter the Russian or EU markets.