VIETNAM NEWS/ANN: Trade between India and Vietnam 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-Vietnam Co-operation”, K Srikar Reddy said Vietnam was among the top five textile and clothing exporting countries along with India.
Its exports exceeded $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 Vietnam 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.
Vietnam 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 Vietnam in supplying cotton, yarn and fabrics.”
Nguyen Hong Giang of the Vietnam Cotton and Spinning Association (VCOSA) said there was plenty of opportunity for cooperation 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 Vietnam Cotton and Spinning Association, we welcome investment from India in fabric making.”
When investing in Vietnam, Indian firms would get tax breaks from FTAs that Vietnam has signed or would be signing, he said.
“You buy more yarn from Vietnam and we will buy more cotton fabric from you. That is a win-win situation.”