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Textile players eye investment in VietnamFriday, May 29, 2015 > 09:31:45
(Times of India)
Textile players, including denim makers, are eyeing investment opportunities in Vietnam. Several companies have been enthused by the proposed textile park in that country. Recently, a 13-member delegation comprising the representatives from Denim Manufacturers Association (DMA) and Northern India Textile Mills Association (NITMA) had visited Vietnam.
During his own visit, Prime Minister Narendra Modi had offered $300 million line of credit to Vietnam to buy materials and textile machinery. India is currently looking at the possibility of setting up a textile park in Vietnam, a move that is likely to boost trade and investment in man-made fibres and fabrics between the two countries.
"There are opportunities in spinning and fibre segment," said Siddhartha Rajagopal, executive director, the Cotton Textiles Export Promotion Council. "Several companies are studying the potential of setting up units in Vietnam. The only issue is that the Vietnam government wants that yarn should be made there itself."
Earlier this month a delegation including the heads of companies such as Anubha Industries, Raymond UCO Denim Pvt Ltd, Mafatlal Industries Ltd, Soma Textile & Industries Ltd, Vinod Denim Ltd, Modern Denim Ltd, the secretary general of NITMA, and the company secretary of DMA, among others had visited Vietnam.
"The main reason of visiting Vietnam was to explore the market. And few companies are also interested in investment," said Akshat Chaudhary of Anubha Industries Pvt Ltd.
The potential park is likely to come up near the southern Vietnam economic hub of Ho Chi Minh City. Vietnam is one of leading source countries for apparel and is dependent on other nations such as China for textile input.
The Synthetic and Rayon Textiles Export Promotion Council of India has also called for feedback from its members to put together a draft proposal on the textile park.
The Vietnam textile sector is likely to benefit hugely from Trans-Pacific Partnership Agreement which is being negotiated among 12 countries including the US and Canada. After China, Vietnam is the second biggest exporter to the US, even ahead of India.
"Vietnam's textile industry has been witnessing steady growth over the recent years and is poised to become the next textile and garment hotspot," said Gagan Deep Singh of DMA.