Vietnam clothiers, textilers look to source yarn from India

The in-country supply chain supplies three out of the nine billion metres of fabric and yarn needed each year, said Ms Mai, adding that it’s time businesses in the segment diversify their sources of intermediary product.

They need to lessen dependence on China, the Republic of Korea and Taiwan, the three primary supply sources, and look for viable alternatives, she argued.

Depending almost entirely on three sources unnecessarily puts production at risk if unforeseen circumstances arise that cause an interruption in the flow of product from any of them to Vietnam.

She noted members of the Association have talked extensively about the dilemma with the Association of Garments Textiles Embroidery and Knitting in Ho Chi Minh City and said there is consensus that seeking alternative suppliers in India is in the best interest of the segment.

Many Vietnamese clothiers and textilers have conducted due diligence tours of the industry in India and concluded that suppliers in India can satisfy their needs for quality product on a consistent and timely basis.

Nguyen Xuan Hong, president of the Association of Garments Textiles Embroidery and Knitting, in turn, noted that India has a trade agreement with ASEAN that provides benefits in the form of lower tariffs and other trade relief to the Vietnam segments.

Mr Hong noted that several attempts in the past were made to boost supply chain links with businesses in the Indian segments but little advancement was made and the results obtained were far below expectations.

A representative from Thanh Cong Garment Company pointed out that the turnaround time on orders placed in India was 60-90 days as opposed to the much shorter 45-60 days on orders in China.

Mr Cong indicated this time factor was a major reason for his company sticking with Chinese suppliers.

The governments of Vietnam and India have put clothing and textiles reform at the top of their priority list for further development, Mr Cong told the audience, and have set major talks to be held on the side lines of Textile India 2017.

The event running from June 20 to July 2, inclusive, in Gujarat is a huge annual textile trade event in India and this year the Honourable Prime Minister of India, Shri Narendra Modi will deliver the keynote address.

The three-day event is expected to attract around 1,000 international and domestic exhibitors and 2,500 buyers from countries across the globe and consequently provide an excellent platform for business to business interactions.