A denim fabric production line in Nha Trang city(Photo: sggp.org.vn)
Hanoi (VNA) – Indian fabric investors have shifted their attentionfrom China to Vietnam, which is billed as an emerging denim fabricmanufacturing centre, in their search for potential suppliers of denim fabric.
The impressive growth of Vietnamese garment and textile in recent years, with31 billion USD in export revenue last year and a target of 50 billion USD after2020, has persuaded the choosiest customers worldwide, including Indian firms.
Denim goods accounted for 20 percent of the sector’s export revenue, accordingto the Vietnam Textile and Apparel Association (VITAS).
Although the sector is facing bottlenecks in its supplying chain, denim fabricproduction is a strong point of local producers with the localisation ratio of 55-60percent, spurred by heavy investment in production line, and technologies.
Right after the third edition of the Denimsandjeans Vietnam Show organised inHo Chi Minh City in June, many Indian companies expressed their wish tocollaborate with Vietnamese partners in producing denim fabric.
CEO of Balaji Enterprises Sandeep Agarwal, founder of the Denimandjeans, saidthat the Vietnamese garment and textile, with increasing production capacity,is a magnet for foreign investors.
Meanwhile, Marketing Director of KG Fabriks Thamarai Selvan, noted that hiscompany is planning to move its plants from China as more benefits are expectedwhen having production facilities in Vietnam, including larger order volumesand skillful workers.
Anubha Industries Private and Vietnamese denim providers have reached certainagreement, and a trade cooperative deal will soon be announced, said marketingdirector of the firm Amit Desai.
According to Indian Consul General in Ho Chi Minh City K. Srikar Reddy, garmentand textile sector is a priority in joint efforts to elevate the two-way tradeto 15 billion USD by 2020.
Currently, India has registered 814 million USD in 176 projects in Vietnam,ranking 28th out of 126 countries and territories having investmentin the country. Last year, India exported 429 million USD worth of garment andtextile products to Vietnam, an increase of 44 percent year on year. However,the figure was only a fraction of the import need of the Vietnamese garment andtextile sector.-VNA
Right after the third edition of the Denimsandjeans Vietnam Show organised inHo Chi Minh City in June, many Indian companies expressed their wish tocollaborate with Vietnamese partners in producing denim fabric.
CEO of Balaji Enterprises Sandeep Agarwal, founder of the Denimandjeans, saidthat the Vietnamese garment and textile, with increasing production capacity,is a magnet for foreign investors.
Meanwhile, Marketing Director of KG Fabriks Thamarai Selvan, noted that hiscompany is planning to move its plants from China as more benefits are expectedwhen having production facilities in Vietnam, including larger order volumesand skillful workers.
Anubha Industries Private and Vietnamese denim providers have reached certainagreement, and a trade cooperative deal will soon be announced, said marketingdirector of the firm Amit Desai.
According to Indian Consul General in Ho Chi Minh City K. Srikar Reddy, garmentand textile sector is a priority in joint efforts to elevate the two-way tradeto 15 billion USD by 2020.
Currently, India has registered 814 million USD in 176 projects in Vietnam,ranking 28th out of 126 countries and territories having investmentin the country. Last year, India exported 429 million USD worth of garment andtextile products to Vietnam, an increase of 44 percent year on year. However,the figure was only a fraction of the import need of the Vietnamese garment andtextile sector.-VNA
VNA
