In the exhibition ‘Source India 2018’ in Ho Chi Minh City on July 17, Indian Ambassador to Vietnam, Parvathaneni Harish, expected that the cooperation between Vietnam and India in the garment and textile sector will be one of the priorities in efforts to raise bilateral trade value to 15 billion USD by 2020.
Figure: Vietnam and India will boost cooperation in the garment and textile sector to raise bilateral trade to 15 billion USD by 2020.
“It is also the industry the Government of Vietnam and India have prioritized to developing and cooperating with an aim of enhancing bilateral trade and building a supply chain for the sector in the future,” he added.
Harish said, “Increasing the bilateral trade between both India and Vietnam in the garment sector will be among the top priorities to enhance the social and economic development of both the nations.”
Currently, India owns a strong fiber and yarn production industry that is able to produce almost all kinds of fabric and supporting materials available in the market, making it one of the three largest textile products providers in the world.
Meanwhile, Vietnam is one of the biggest apparel exporters in the world that generated export revenue of US $31 billion last year and expects to touch US $35 billion in 2018.
In 2017, India exported apparels worth US $429 million to Vietnam, which is a surge of 44% from what it was in 2016. However, Vietnam exported the not-so-impressive US $ 178 million worth of apparel products to India.
Anil Rajvanshi, Chairman of the Synthetic and Rayon Textiles Export Promotion Council of India, said, “India is strong in producing and exporting textile products from synthetic yarn, a material fabric that is being used widely in the world garment industry with high expansion prospects in the future.”
To enhance trade cooperation, India intends to export apparel materials worth US $ 1 billion in coming years and has also urged Vietnamese companies to actively participate in strengthening trade relations.
Nguyen ThiTuyet Mai, Deputy General Secretary of the Vietnam Textile and Apparel Association, said that “Despite being one of the five largest apparel exporters in the world, Vietnam is also one of the countries that import the highest amount of garment and textile materials in the world.”
She also added that “While Vietnam will gain from India with regard to the latest technology and more textile materials and products; India too can expand its market. She also applauded the quality of Indian fabric.”
Vietnamese businesses proposed that the governments of the two countries consider negotiations on and the signing of a bilateral free trade agreement to lay the foundation for the reduction of tariff for goods of each other.