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Africa a potential market for Vietnamese textiles: MOIT
Jul '13
The African countries can be a potential market for exports of Vietnamese textiles, according to the Department of African, West Asian and South Asian Markets, in the Ministry of Industry and Trade (MOIT).
The agency said despite being a source of raw cotton, the textile industry has not developed in many African countries. Along with an increase in the population and income of the African people, the continent will become a big market for textile items, vov.vn reported. 
In 2012, Vietnam exported textiles, including fabric, to 38 African countries, valued at US$ 164.47 million, showing a rise of 17 percent year-on-year. Textiles were among the five largest items, in terms of turnover, exported by Vietnam to the African countries.
At present, China and India account for a major share of textiles supply to the African market. However, in recent period, some countries like South Africa have implemented the quota system for Chinese clothing, which provides a good opportunity for Vietnam to increase its exports to those markets.
Although Vietnam is counted among the top textile exporting countries in the world, the value of its textile exports to Africa remains relatively modest. According to the MOIT, Vietnam can increase its textile exports to Africa, as it enjoys competitive advantages like low labour costs compared to several other countries, and manufacturing of quality products.
The Department of African, West Asian and South Asian Markets said Vietnamese textile exporters should attend trade fairs, international exhibitions and conferences to directly meet the African importers.
In addition, Vietnamese businesses need to understand the customs, culture, business, import and export regulations, as well as the payment method in various African countries.
This becomes important, as most African countries benefit from preferential tariffs when exporting to the US and the EU. The African Growth and Opportunity Act (AGOA) allows duty-free imports of nearly all goods, including textiles, to the US from 48 countries of the Sub-Saharan Africa region.

Fibre2fashion News Desk - India

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