Textile industry representatives from Viet Nam and India gathered in Nam Dinh City yesterday to exchange information on opportunities for co-operation, especially the potential strengths of textiles in both countries.
About 160 businesses from the two countries took part in the seminar-workshop which the Viet Nam Chamber of Commerce and Industry (VCCI) organised in collaboration with the Indian Embassy in Viet Nam, the People's Committee of Nam Dinh, the Ministry of Trade and Industry and the Indian Business Association in Viet Nam.
Do Huu Huy, an official of the Ministry of Industry and Trade, said diversification in the supply of textile materials and the sustainable development of the Vietnamese garments industry was not dependent on a particular market.
According to Pham Quang Thinh, VCCI deputy head of International Relations, Viet Nam's garments industry must meet the requirements of supply chains to gain at least 10 per cent of world market share.
Some textile-importing countries involved in the Trans-Pacific Partnership Agreement (TPP) require the exporter to identify the origin of their products as well as the progress in the production of fabrics made in Viet Nam or TPP member countries. By doing so, they will enjoy a zero-per cent preferential tax rate.
Meanwhile, Viet Nam meets only 50 per cent of demand of locally-produced fiber materials. In such a situation, FDI and Indian businesses have quickly invested in Viet Nam to build paint, textile and dyeing factories.
Mohit, a representative of the Indian Business Chamber in Ha Noi, said that India was the world's second largest exporter of raw cotton, fabrics, yarn, and textile materials, accounting for 13.52 per cent of world market share and 24 per cent of world spinning capacity.
He added that Viet Nam was one of the world's leading countries in garment and textile exports but was too dependent on imports. India was now only exporting two per cent of its production to Viet Nam's textile industry.
According to Mohit, India is now the world's largest producer of natural and man-made fibers, and this would be a good area for future bilateral co-operation between the textile sectors of both countries.
India is now one of the country's 10 largest trade partners, with bilateral trade turnover last year reaching US$5.2 billion, a 30-per cent year-on-year increase. Viet Nam's exports to India reached nearly $ 2.3 billion and its imports from India reached $2.9 billion.
In the first eight months, bilateral trade between the two countries reached $3.78 billion.
Major exports to India include mobile phones, computers, electronics products and components, as well as coal, rubber, ore, plastic materials, chemicals and pepper.
Major imports from India include pharmaceuticals, animal feed, machinery and equipment, as well as raw materials for production.
As of August 2014, India has 83 investment projects in Viet Nam with a total registered capital of $256 million, mainly in manufacturing and mining. The two countries aim to increase their bilateral trade to $15 billion by 2020./.