Vietnamese, Indian textile firms seek closer ties
Vietnamese, Indian textile firms seek closer ties
Untapped potential
According to Indian Consul General in Ho Chi Minh City Dr. K. Srikar Reddy, India’s gross domestic product (GDP) grew 6.8 percent in the 2018-19 fiscal year and is forecast to double by 2025 to US$5 trillion compared with the current level, US$2.5 trillion.
India’s economic growth, Reddy explained, is expected to boost opportunities for bilateral trade in textiles and garments. The Indian textile and garment market is valued at about US$139 billion, with domestic sales accounting for US$100 billion and exports for US$39 billion, promising opportunities for Vietnamese textiles and garments to penetrate this market.
Vu Duc Giang, President of the Vietnam Textile and Apparel Association (VITAS), said the size of the Vietnamese textile and garment sector is about US$44 billion, with the 2019 export value expected to reach US$39.5 billion and domestic sales US$4.5 billion. However, Vietnam needs to import US$27.9 billion worth of materials, mostly cotton, yarns, garments and fabrics, from other markets including India to make export products.
Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council of India (TEXPROCIL), said that bilateral trade in textiles and garments remains limited despite improvements. Specifically, in 2018, India imported about US$7.31 billion worth of textiles and garments but only about US$300 million or 4.1 percent from Vietnam. Meanwhile, the Vietnamese textile and garment sector spent US$27.9 billion on material imports with only US$649 million from India.
Giving a boost to trade
The above data show great cooperation potential for Vietnamese and Indian textile and garment companies. Moreover, the ASEAN-India Free Trade Agreement allows Vietnam to import yarns, shuttle woven and knitted fabrics free-of-tax from India.
In mid-November 2019, TEXPROCIL sent a delegation of representatives from 60 Indian textile and garment companies to Vietnam to meet Vietnamese businesses. At the meeting, VITAS President Vu Duc Giang spoke about favorable conditions for investment in the Vietnamese textile and garment sector and invited Indian companies to invest in yarn, textile production, dyeing and printing.
TEXPROCIL Executive Director Siddhartha Rajagopal invited Vietnamese companies to participate in Ind-Texpo, a specialized B2B fair in the Indian cotton textile sector that will take place in Coimbatore, Tamil Nadu, India from March 17-29, 2020. As the event’s organizer, TEXPROCIL will pay all charges related to air tickets, accommodation and travel in India for Vietnamese companies.