Indian fabric firms are shifting attention from China to Vietnam, which is being widely considered as an emerging denim fabric manufacturing centre. After the third edition of the Denims and jeans Vietnam Show organised in Ho Chi Minh City in June, many Indian companies expressed interest in collaborating with Vietnamese partners in producing denim fabric. Denim goods accounted for a fifth of the sector’s export revenue, according to the Vietnam Textile and Apparel Association (VITAS).

Although the sector is facing bottlenecks in its supplying chain, denim fabric production is a strong point of local producers with the localisation ratio of 55-60 per cent, spurred by heavy investments in production line, and technologies, according to a report. According to Marketing Director of Coimbatore-based KG Fabriks Thamarai Selvan, his company is planning to move its plants from China as benefits are possibly more with production facilities in Vietnam, including larger order volumes and skilled workers.

Surat-based Anubha Industries Private Ltd and Vietnamese denim providers have reached an agreement, and a trade cooperative deal will soon be announced, said Marketing Director of the firm Amit Desai. India at present has registered $814 mn in 176 projects in Vietnam, ranking 28th out of 126 countries and territories having investment in the country.