Doan Duy Khuong, Vice-Chairman, Vietnam Chamber of Commerce and Industry (VCCI) said that India had had great opportunities to provide raw materials to Vietnam's textile industry. He was speaking at the recently held Vietnam - India textile cooperation conference in Ha Noi.
Khuong said that the country’s cotton output met only 1 per cent of local producers' demand. Thus, the domestic garment and textile sector had to import a large quantity of cotton. Vietnam needs more than 500,000 tonnes of cotton per year to meet the rising demand. He added that India had enough supply of the material for the Vietnamese textile industry.
Leaders and business communities of Vietnam and India have been drawn towards bilateral cooperation in textile and garment sectors. DoThang Hai, Deputy Minister of Industry and Trade said, in October last year, when Prime Minister Nguyen Tan Dung visited India, the Indian Government offered a $300 million line of credit to Vietnam as an impetus to accelerate textile trade and investment between the two countries.
Khuong stated that the Vietnam textile industry had grown substantially in the past recent years and will continue to develop in the future. The country’s garment industry constitutes 20 per cent of its gross domestic product (GDP). Its garment exports’ turnover is forecasted at $40 billion in 2020.
Foreign enterprises have invested in Vietnamese textile industry with projects worth hundreds of millions dollars with the successful negotiation conclusion of the Trans-Pacific Partnership (TPP).
India and Vietnam’s bilateral trade ties have grown significantly, with a total trade turnover of $5.59 billion in last year, increasing by 9.84 per cent compared to 2013.