Vietnam is emerging as a denim fabric manufacturing center. Indian fabric investors are showing interest as they search for potential suppliers of denim fabric. Denim goods account for 20 per cent of the textile sector’s export revenue in Vietnam. Although the sector is facing bottlenecks in its supply chain, denim fabric production is a strong point of local producers with a localisation ratio of about 60 per cent, spurred by heavy investments in production lines and technologies.
The impressive growth of Vietnamese garments and textiles in recent years has persuaded the choosiest customers worldwide, including Indian firms. The Vietnamese garment and textile sector with its enhanced production capacities is a magnet for foreign investors. Indian companies are looking to collaborate with Vietnamese partners in producing denim fabric. Many are planning to move their plants from China as more benefits are expected when having production facilities in Vietnam, including larger order volumes and skillful workers.
Currently, India has invested $814 million in 176 projects in Vietnam, ranking 28 out of 126 countries and territories having investment in the country. Last year, India’s garment and textile exports to Vietnam increased 44 per cent year on year.