Opportunities for Vietnam’s textile and garment industry to penetrate the Indian market
Vietnamese enterprises look for textile and garment sources in India
From January 20 to January 22, Vietnamese businesses actively attended and searched for sources of textile and garment materials at the 64th India International Textile and Garment Fair (IIGF) taking place at the Center Pragati Maidan Expo, New Delhi, India.
In the past time, although the Governments, industry associations and businesses of the two countries have actively organized many trade promotion programs, held trade meetings, and met sellers – buyers, but the results achieved is still very modest.
In 2019, India imported about 7.6 billion USD of textile and garment and fiber materials, but only about 450 million USD from Vietnam (accounting for about 6% of the total import value of the Indian garment industry). .
On the other hand, Vietnam’s imports from India of textile products, raw materials and cotton also reached about 450 million USD, accounting for a very small proportion of the total import value of about 30 billion USD of Vietnam.
The total size of the Indian textile and garment industry is about 140 billion USD with a domestic market of 100 billion USD and export value of 40 billion USD, which will bring many opportunities for Vietnam’s textile industry to penetrate the Indian market next time.
At the same time, with the overall size of Vietnam’s textile and garment industry at about 45 billion USD, of which export in 2019 is expected to be about 39.5 billion USD and domestic consumption is 4.5 billion USD; It also opens up many opportunities for Vietnamese enterprises to import textile and garment materials such as cotton, yarn, ready-made garments and fabrics.
At the fair that took place in January, Vietnamese businesses met, exchanged and signed a memorandum of understanding on cooperation with a number of Indian partners in the fields of khaki, duffle, and clothing fabrics. Labor protection and children’s fashion services.
Textile at the India International Textile Fair, jointly organized by the International Textile and Apparel Association and the Textile Export Promotion Council of India, is organized twice a year in January and July every year, under the auspices of the International Textile and Apparel Association. Sponsored by the Indian Ministry of Textiles.
This fair has the participation of nearly 1,000 international and Indian companies and enterprises participating in the display and introduction of products, equipment, machinery, raw materials, and garment accessories.
This is India’s major textile trade fair, and was voted as one of the largest textile fairs in the region.
Vietnamese businesses need to pay attention when India is temporarily closed because of COVID-19
The Vietnam Trade Office in India (Ministry of Industry and Trade) said that in order to limit the risks caused by COVID-19, the Government of India has implemented “social isolation” for all people; closed all activities for 21 days.
As a result, customs clearance activities will be interrupted. In order not to take risks, the Vietnam Trade Office in India recommends that Vietnamese businesses should pay attention when they have a need to export goods to India and temporarily do not accept unfavorable payment terms such as D/A. ; D/P late payment, or for customers who owe money, priority is to apply L/C in advance, not cancel immediately.
Temporarily not carrying out export procedures for goods that may arrive at Indian ports before April 15. Currently, banks in India have cut their working hours to 2 hours/day, so the payment time is also slower than usual.
Accordingly, it is necessary to review the signed sales contracts, in case of disadvantage, it is necessary to request to change contract terms, add additional provisions on force majeure due to natural disasters and epidemics.
For importers who temporarily do not pay any deposit or pay in advance to sellers because factories that do not produce essential goods must also temporarily close. Can treat colds and flu.
At the same time, carefully check the documents and documents before payment, avoid the case that the business fakes documents and signatures to complete the payment procedures, regularly contact the buyer to update information about the status of the transaction. production, ability to supply goods, review purchase and sale contracts and inform customers and works about the source of goods, ability to supply, delivery time…
By Economy & Consumption
