AsemconnectVietnam - Indian enterprises are sounding out opportunities to increase exports of textile machinery to Vietnam, heard a meeting in HCMC on July 20 between members of the Indian Textile Accessories and Machinery Manufacturers' Association (ITAMMA) and Vietnamese enterprises active in the textile industry.

According to N.D. Mhatre, technical director general of ITAMMA, Vietnam is one of the leading countries in textile manufacturing and export in the world, so there is a great demand for textile accessories and machines in the country.

Meanwhile, vice chairman of the association Kishore Khaitan said India has a developed textile machinery manufacturing industry and its products have been shipped to many countries. Indian-made textile accessories and machineries have competitive prices but exports of such merchandises to Vietnam were still low.

In 2016, India exported over US$400 million worth of textile accessories and machineries but its exports to Vietnam were just a trivial fraction of about US$400,000.

According to Khaitan, ITAMMA also has plans to establish a textile technology center in HCMC to introduce textile accessories and machines made in India to local firms.

Vietnam’s textile and garment sector has seen drastic growth and become a key industry with export revenues ranking second in the country, trailing only behind phones and phone parts. However, the country still has to import great quantities of textile accessories and machines.

Textile and garment manufacturers in Vietnam said they mainly import machines and equipment from the EU, Japan and China. However, there are still great opportunities for Indian enterprises to boost textile machinery exports to Vietnam if they offer products of high quality at competitive prices.

Nguyen Thi Tuyet Mai, deputy general secretary of the Vietnam Textile and Apparel Association, said Vietnam is among top five textile and garment exporters in the world with export revenues in 2016 totaling US$28.5 billion.

Vietnam still has a great demand for imported textile accessories and machines, Mai added. According to commitments between Vietnam and India under the ASEAN-India Free Trade Area (FTA), the two countries will reduce taxes on textiles and garments and related products. This is a chance for Vietnamese firms to access another source of textile accessories and machines.

However, Vietnamese enterprises will need time to get used to Indian-made machines and equipment.

Source: thesaigontimes.vn