Textiles: India-Việt Nam Co-operation’ in Vietnam
The Indian consulate in HCM City in co-ordination with VCOSA organised a business interaction event ‘Textiles: India-Việt Nam Co-operation’ in Vietnam. The event attracted nine Indian companies who also participated in the 18th ViệtNam International Textile and Garment Industry Exhibition in HCM City from November 21 to 24 besides local firms.
In his opening remarks K Srikar Reddy said Việt Nam was among the top five textile and clothing exporting countries along with India. India’s textile and clothing exports to Việt Nam during the 2017-18 fiscal year grew by 42 per cent to $555 million. Its exports exceeded $31 billion last year, a year-on-year growth of 10.23 per cent.
Việt Nam also had to import a lot of raw materials and is planning to diversify its sourcing of raw materials for garments such as cotton, yarn, made-ups and fabric. According to Nguyễn Hồng Giang, Việt Nam Cotton and Spinning Association (VCOSA), there is a plenty of opportunity for co-operation in yarn, cotton and fabrics between businesses in the two countries.
India is one of the suppliers of high-quality materials, fabric and machinery at competitive prices globally. Under the India-ASEAN FTA, most types of cotton yarns, woven cotton fabrics and cotton knit fabric can be imported duty free from India from January 1 next year.
The Indian government also allows 100 per cent foreign direct investment under the automatic route in many sectors, including textiles. Importers and buyers who are interested in sourcing from India can benefit from a subsidised scheme for hotel stay and travel by visiting the show in India.