Vietnam, India discussed co-operation opportunities in the garment and textile industry at an event in HCM City on November 23 (Photo VNA)

HCM City (VNA) -
There is a lot of potentials for cooperation between Vietnam and India in the textile and garment sector, a Vietnam-India business meeting heard in Ho Chi Minh City last week.

K Srikar Reddy, Indian Consul General in the city, said Vietnam is among the top five textile and clothing exporting countries along with India.

But it has to import a lot of the raw materials, while “India’s textile industry has developed a complete product supply chain and India is also one of the suppliers of high-quality materials and fabrics at competitive prices in the world.”

Cooperation between the two countries would help Vietnamese enterprises diversify their raw material sources and sell high-quality products in the international market, he added.

Nguyen Thi Tuyet Mai, Deputy General Secretary of the Vietnam Textile and Garment Association, concurred with him, saying Vietnam has a shortage of cotton, fabric and yarn while India has an abundant supply of these products, making them perfect partners.

The General Statistics Office estimates that Vietnam spent 18.5 billion USD to import cotton, un-spun fibre, fabric and auxiliary materials last year and around 15.5 billion USD in the first nine months of this year.

Vietnam imported all is cotton needs, with the US and India being the largest suppliers, besides also importing fabric and yarn from India.

Shailesh Martis, joint director of the Cotton Textiles Export Promotion Council, said last year India was the sixth largest supplier of textiles to Vietnam, but only accounted for a 1.83 percent market share, while China and the Republic of Korea, the largest suppliers, accounted for 65.4 percent.

India’s export of textiles to Vietnam, especially fabrics, is very low but it is the second biggest supplier of cotton yarn after China, according to the director.

“Vietnam has established itself as one of the leading garment makers to the world, not only to major markets like EU and the US but also to newly emerging large importers China and the Republic of Korea.”

India is the world’s largest producer of jute and the second largest producer of cotton and silk, and accounts for 22 percent the world’s spindle capacity, he said.

“Vietnam needs huge quantities of right-priced, quality woven and knitted fabrics to continue its growth momentum.

“India could be an economical source of quality yarns and fabrics to bridge the gap and make Vietnam’s garments even more competitive.”

He also suggested ways to increase bilateral trade, including exchange of technical know-how, trade-related information and demand – supply trends for important product groups on a regular basis.

The event attracted nine Indian companies that export cotton, fancy yarns, viscose/blended yarns, fabrics, staple fibre and others, who are also participating in the Vietnam International Textile & Garment Industry Exhibition in HCM City from November 22 to 25, besides local firms.-VNA