K Srikar Reddy, the Indian consul general in the city, said Việt Nam 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.”
Co-operation between the two countries would help Vietnamese enterprises diversify their raw material sources and sell high-quality products in the international market, he added.
Nguyễn Thị Tuyết Mai, deputy general secretary of the Việt Nam Textile and Garment Association, concurred with him, saying Việt Nam 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 Việt Nam spent US$18.5 billion to import cotton, un-spun fibre, fabric and auxiliary materials last year and around $15.5 billion in the first nine months of this year.
Việt Nam 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 Việt Nam, but only accounted for a 1.83 per cent market share, while China and Korea, the largest suppliers, accounted for 65.4 per cent.
India’s export of textiles to Việt Nam, especially fabrics, is very low but it is the second biggest supplier of cotton yarn after China, according to the director.
“Việt Nam 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 Korea.”
India is the world’s largest producer of jute and the second largest producer of cotton and silk, and accounts for 22 per cent the world’s spindle capacity, he said.
“Việt Nam 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 Việt Nam’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.