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