A strong potential for cooperation exists between India and Vietnam in the textile and apparel sector, said Bui Trung Thoung, Commercial Counselor and Head-Vietnam Trade Office in India during an online seminar on Vietnam-India cooperation in the textile industry.
Vietnam’s estimated yearly market of $1.2 billion can help the country meet India’s growing demand for premium polyester fabric, he added.
The partnership will also boost raw material supply between the two countries besides expanding their production and trade capacities, Thuong added further. He emphasized, despite employing 3 million people and being the world’s third largest textiles and apparels exporter, Vietnam continues to depend on China for its imports.
India’s competitive edge in the production of cotton, yarn, and textile machines, as well as preferential treatment under the ASEAN-India Free Trade Agreement (AIFTA), can help Vietnam reduce this dependency and save input costs by 22-27 per cent.
Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI), added, this initiative would help restructure the existing trade disputes and establish a flexible and valuable supply chain.
Rajesh Bhagat, Chairman, Worldex India, encouraged both the countries to enhance their presence through specialized exhibitions to help foster connections, contract agreements, and expand cooperation in machinery, technology, and supply chain development.
