World’s two leading textile and garment manufacturing hubs, Vietnam and India are looking for an even closer collaboration. It is to be noted that textile trade between the two nations has grown in the recent past. This was highlighted by K Srikar Reddy, Indian Consul General at an event named ‘Textiles: India-Vietnam Cooperation’.
As per the figures available, textile and garment exports from India stood at US $ 36.7 billion. Exports to Vietnam were worth US $ 555 million, up by 42 percent.
“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 added.
The Consul also added that Vietnam imports a lot of raw materials, and India is one of the suppliers of high-quality materials, fabric and machinery which would be beneficial for them.
Notably, India-Asean FTA permits exports of cotton yarns, woven cotton fabrics and cotton knit fabric could be imported duty-free from January 1, 2019.
Nguyen Hong Giang, Vietnam Cotton and Spinning Association (VCOSA) stated that 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.”
Indian textile companies will also get tax benefit from FTA. Reddy said, “Many Indian companies have already invested in Vietnam 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.”