10:18 | 31/12/2018 Trade
Most types of yarn and woven and knitted fabrics originating from India will be exempt from customs duties in Vietnam from January 1, 2019, under the ASEAN – India Trade in Goods Agreement (AITIDA).
|Illustrative image - Source: VNA|
India is among the world’s major exporters of high-quality textile raw materials and machinery at competitive prices, said President of the Ho Chi Minh City Association of Garment, Textile, Embroidery and Knitting Nguyen Xuan Hong.
Many Vietnamese textile and garment firms are exploring the gigantic market of 1.3 billion people in India by investing in manufacturing yarn, fabrics, ready-made garments and more, he noted. Meanwhile, Vietnam has become an appealing destination for Indian investors largely due to competitive labour costs and preferential policies for the textile and garment industry. Vietnam has helped Indian textile and garment manufacturers up production sites in the country to take full advantage of trade deals Vietnam has signed.
Vietnam Customs statistics show that in the first eight months of 2018, garment and textile trade between Vietnam and India reached 799 million USD, up 35 percent from the same period last year. Vietnam’s imports of Indian cotton were valued at 343.8 million USD, up 46 percent against the previous year, while the country’s exports of garment and textile products hit 203 million USD, up 20 percent. The two countries’ bilateral trade in textiles has registered impressive growth during the last two years, according to the Indian Consulate General in Ho Chi Minh City.
Vietnam – India trade hit 7.62 billion USD last year and is expected to reach nearly 10 billion USD by the end of this year, up 47 percent year on year.