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| Since India has strength in textile technology and Việt Nam is dependent on feedstock for its textile industry from many countries, they could mutually benefit by co-operation, according to the Viet Nam Chamber of Commerce and Industry. — Photo tuoitre.vn |
HCM CITY (Biz Hub) — Since India has strength in textile technology and Việt Nam is dependent on feedstock for its textile industry from many countries, they could mutually benefit by co-operation, according to the Viet Nam Chamber of Commerce and Industry.
Vo Tan Thanh, director of VCCI's HCM City chapter, said the garment and textile sector was the country's second largest export earner last year after increasing by 17 per cent to US$27.5 billion.
Yet, the sector relied heavily on imported raw materials, he told a press conference held to introduce the India Textile Machinery Exhibition (IMTE 2016).
Nguyen Ngoc Lan, deputy director general of Nha Be Corporation, said 70 per cent of the feedstock needed for production has to be imported, and last year this accounted for around $15 billion.
Both Thanh and Lan said existing and future free trade agreements, including the TPP and Viet Nam-EU FTA, would open up export opportunities for the sector.
"Experts forecast garment and textile exports to be worth $50-55 billion by 2025, double the current figure," Thanh said.
The sector urgently needs to invest in technologies to produce its own raw materials so that it can benefit from the FTAs, especially the TPP, he said.
India, the second largest garment and textile producer in the world, has advanced technologies and equipment at competitive prices, offering Vietnamese firms a good choice, he said.
Lan said the Viet Nam National Garment and Textile Group and other companies in the sector have enhanced co-operation with local and foreign partners to produce more fibre, yarn and other raw materials.
"We know that India has strengths in garment and textile technology. We hope that Indian firms will [enter] the Vietnamese market via joint ventures to make textile raw materials."
Nguyen Thi Tuyet Mai, deputy general secretary of the Viet Nam Textile and Garment Association, said the country has 5,000 garment and textile firms, but only 500 of them produce raw materials.
Around 20 Indian garment and textile firms have a presence in Viet Nam, she said, adding that the number is expected to increase further since the two countries are trying to link up their businesses, especially in this sector, she said.
Sanjiv Lathia, chairman of the India International Textile Machinery Exhibitions Society, told the press conference that he has invited the Viet Nam Textile industry to the IMTE 2016, one of the largest international textile machinery and accessories expos.
Organised every four years, the 10th exhibition to be held in Mumbai from December 3 to 8 will feature the best of textile engineering, innovation, customised solutions, green technology, fibre, yarn and others from 37 countries, he said.
Seema Srivastava, executive director of the India International Textile Machinery Exhibitions Society, said the exhibition would enable participants to experience modern technologies from across the globe, interact with distributors and explore opportunities for joint ventures and investment.
Lathia said the exhibition is expected to welcome more than 1.5 million visitors.
Thanh said the VCCI would send a delegation to the expo. — VNS