"As one of the world’s leading suppliers of textiles and clothing, we can supply any kind of raw materials used in textile and garment production to Vietnamese partners," VS Velayutham, who is leading a textile delegation on a visit to HCM City, told local entrepreneurs at a meeting in 25th June 2009.

Dr Jitendra Nath Misra, Indian consul general in HCM City, said despite the global downturn, Indian companies remained interested in Viet Nam, with more and more delegations coming here to seek opportunities.

Indian businesses prefer to set up joint ventures with Vietnamese partners to transfer technology in the garment and textile sector because a joint venture involves much more than a buy-sell relationship, he explained. It would help create jobs, develop infrastructure and human resources, and help boost Viet Nam’s exports to India and other countries, he said.

Youthful market

He exhorted Vietnamese firms to export more to India, saying it was a youthful market with diverse needs. Speaking at the meeting, Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry in HCM City, said: "This is a good opportunity for both parties to study, exchange information, and set up a long-term relationship based on mutual benefit." Trade between Viet Nam and India had risen sharply in recent years, he added.

Last year, it rose 61 per cent from 2007 to US$2.48 billion. In the first two months of this year, it was worth $282 million.

Viet Nam exports coffee, coal, pepper, rubber, electrical products, and footwear to India, and imports animal feed, steel, iron, plastic and pharmaceutical products, and accessories and machinery for the garment and textile industries.

Last year, Viet Nam imported cotton worth $80 million and garment and textile accessories worth $57 million from India, 101 per cent and 38 per cent higher than in 2007, Hung said.

Pham Xuan Hong, deputy director of the Viet Nam Textile and Apparel Association, said although its exports were large, the garment sector’s FOB exports remain low. It was necessary for Vietnamese garment producers to co-operate with Indian businesses to improve garment and textile production, he said.