Vietnam seeks investment from Indian firms

Vietnam urged Indian companies to invest in apparel production and supply, during an investment promotion event with Northern Indian Textile Mills Association (NITMA) in Ludhiana, India, according to media reports.

The Vietnamese Embassy in India and the Export-Import Bank of India (Exim Bank) jointly organised the event which saw participation of more than 30 members of the NITMA, aiming to bolster Indian’s investment in Vietnamese apparel sector.

Highlighting the opportunities created due to Vietnam being a member of the Trans-Pacific Partnership (TPP) agreement, Vietnamese ambassador to India Ton Sinh Thanh called the Indian apparel firms to invest and run their production units in Vietnam to enter leading markets such as the US, the EU, Japan and Canada with a zero tariff.

Several favourable conditions for investment in Vietnam such as a convenient infrastructure, competitive labour costs, central and local incentives to stimulate investment on land leasing, and tariffs were highlighted by Mukai Sarkar, general director of the Exim Bank. Sarkar also stated about Vietnam’s commitments on reform and a friendly social environment in the country.

To boost the bilateral cooperation in the sector, the Indian government has offered a $300 million special credit for Indian garment and textile investment projects in Vietnam within a decade. The recent event also aimed to seek investments for Cambodia, Laos, and Myanmar, which, together with Vietnam form the CLMV region.