Indian companies to increase textile equipment exports to Vietnam
Indian companies to increase textile equipment exports to Vietnam
Indian companies are looking to expand their presence in the Vietnamese textile and garment sector by selling machinery and technology to local partners.
A delegation of eight Indian textile machinery manufacturers, led by the Indian Textile Accessories and Machinery Manufacturers’ Association (ITAMA), has paid a working visit to Vietnam. This is the third time ITAMA visited since 2014 to explore businesses opportunities and find potential partners.
According to Smita Pant, consul general of India, the export turnover of Indian textile machinery and equipment to Vietnam reached $400 million in the period of 2015-2016. However, this is far below potential. Most textile equipment in Vietnam is sourced from Europe, China, South Korea, and Taiwan—a situation India is keen to change.
“India has potential to supply machinery and accessories to textile companies in Vietnam. Many Indian manufacturers produce good quality machinery which is exported to many countries around the world. Thus, Indian manufacturers hope to cement partnerships with local counterparts in the near future,” she said.
Nguyen Thi Tuyet Mai, deputy general secretary of the Vietnam Textile and Garment Association (VITAS), said that Vietnam's fast-growing textile industry has long been a key contributor to the country's high-growing export-oriented economy.
The export turnover of the Vietnamese textile and garment industry reached $28.5 billion in 2016, making the country one of the five largest exporters in the world. However, most of the raw materials and equipment are imported from other countries like China.
“India has been one of the important trading partners of Vietnam in the sector and the Indian market presents huge potentials for Vietnamese companies. Thus, it is time for Vietnam to tighten cooperation with India to meet the growing demand for machinery and materials,” she said.
On the same note, N. D. Mhatre, director general of ITAMA, said that the association has more than 500 members who are increasingly interested in Vietnam. They are expected to boost exports of equipment and accessories to Vietnam as well as offering the latest technology to local partners.
ITAMA has plans to increase promotion activities and gradually develop long-term partnership between two countries.
Within the framework of the event, ITAMA, VITAS, and the Indian Business Chamber in Vietnam signed a memorandum of understanding to set up a service centre to promote Indian textile machinery and equipment in Vietnam. The initiative is expected to attract more Indian companies to Vietnam, which helps realise commitments to raise bilateral trade to $15 billion by 2020.
