Indian firms seek business opportunities in VN
Indian firms seek business opportunities in VN
India is strong in fibre and yarn production and Viet Nam is dependent on import of feedstock for its textile industry, and so they could both benefit by co-operation, a business interaction event heard in HCM City on Wednesday.
K Srikar Reddy, the Indian consul general in HCM City, said Viet Nam and India are among the top five exporters of textiles and clothing and their interests converge.
Vietnamese textile exports topped US$31 billion last year but it also imported $19 billion worth of inputs, especially yarn and fabric, he said.
In the year until March 2018, India’s exports were worth $36.73 billion.
Under the India-ASEAN Free Trade Agreement, most types of yarns and woven and knit fabric could be imported duty-free from India starting next month.
Dilbagh Singh, chairman of the Indian Business Chamber in Viet Nam, said India has a strong fibre and yarn industry that produces almost all kinds of fabric and supporting materials, making it one of the three largest textile products providers in the world.
“Promotion of co-operation in the garment and textile sector between Viet Nam and India will pave the way for enterprises of both sides to optimise their strengths and advantages. Viet Nam will benefit from more materials, technology and equipment for production, while India can expand its market.”
Pham Xuan Hong, chairman of the HCM City Association of Garment Textile Embroidery-Knitting, said Viet Nam is an ideal destination for investors in view of its competitive labour costs and incentives to the textile and garment sector.
“Viet Nam offers opportunities to Indian companies to set up textile and garment production units to benefit from the competitive advantages of the country’s FTAs and labour force.”
In return, the Vietnamese industry can access to a supply source of yarn, textiles and machinery and upskill its labour force, he said.
Organised by the India consulate, the event attracted the participation of a 15-member delegation from the Confederation of Indian Industry (CII), Tiruppur, visiting Viet Nam to explore investment opportunities.
The CII delegates also visited Vietnamese textile companies in Can Tho and Dong Nai and discussed investment opportunities.
