Trade between India and Viet Nam in textiles has grown significantly, but there is still huge untapped potential, the Indian consul general in the city has said.
In his opening remarks at a business interaction event titled “Textiles: India-Viet Nam Co-operation”, K Srikar Reddy said Viet Nam was among the top five textile and clothing exporting countries along with India.
Its exports exceeded US$31 billion last year, a year-on-year growth of 10.23 per cent.
According to Indian government figures, during the 2017-18 fiscal year, India’s textile and clothing exports were worth around $36.7 billion. Its exports to Viet Nam grew by 42 per cent to $555 million.
“Bilateral trade in textiles has registered impressive growth during the last two years. However, there is still a lot of potential for trade in the area of textiles between our countries,” Reddy said.
Viet Nam had to import a lot of raw materials and was looking to diversify its sourcing of raw materials for garments such as cotton, yarn, made-ups and fabric, he said.
India is one of the suppliers of high-quality materials, fabric and machinery at competitive prices globally, he said.
Also, under the India-ASEAN FTA, most types of cotton yarns, woven cotton fabrics and cotton knit fabric could be imported duty free from India from January 1 next year, he said.
“Therefore, India can become a reliable partner for Viet Nam in supplying cotton, yarn and fabrics.”
Nguyen Hong Giang of the Viet Nam Cotton and Spinning Association (VCOSA) said there was plenty of opportunity for co-operation in yarn, cotton and fabrics between businesses in the two countries.
“Indian companies are strong in making cotton fabrics and textiles. From the perspective of the Viet Nam Cotton and Spinning Association, we welcome investment from India in fabric making.”
When investing in Viet Nam, Indian firms would get tax breaks from FTAs that Viet Nam has signed or would be signing, he said.
“You buy more yarn from Viet Nam and we will buy more cotton fabric from you. That is a win-win situation.”
Reddy said: “Many Indian companies have already invested in Viet Nam in the textile and garment sector. I would also like Vietnamese companies to explore the gigantic market of 1.3 billion people in India by investing in production of yarn, fabric, readymade garments, and others in India.”
The Indian Government allows 100 per cent foreign direct investment under the automatic route in many sectors, including textiles, he said.
Shailesh Martis of the Cotton Textiles Export Promotion Council gave a detailed presentation on the Indian textiles sector and invited Vietnamese companies to attend IND-TEXPO 2019, a textile exhibition showcasing the entire range of textile products, to be held from January 27 to 29 next year at Coimbatore, India.
Importers and buyers from Viet Nam who are interested in sourcing from India can benefit from a subsidised scheme for hotel stay and travel by visiting the show in India, he said.
Organised by the Indian consulate in HCM City in co-ordination with VCOSA, the event attracted nine Indian companies who also participated in the 18th Viet Nam International Textile and Garment Industry Exhibition in HCM City from November 21 to 24 besides local firms. — VNS