A Vietnam Company into apparel sourcing is keen to invest in Sri Lanka, said Ambassador of Vietnam in Sri Lanka Ho Thi Thanh Truc at the National Chamber of Commerce of Sri Lanka hosted “Vietnam – Sri Lanka Bilateral Trade and Investment session” at the Chamber yesterday.
She disclosed that this is the first major FDI from Vietnam to Sri Lanka and it would be via a joint venture with a local company. “Many Sri Lanka companies have invested in 27 projects in Vietnam and the total FDI value amounts to around USD 41 million by 2022.”
Sri Lankan investments in Vietnam mainly concentrated on apparel and textile manufacturing, Desiccated coconut industries, shipping service. The leading Sri Lankan companies operating in Vietnam are Hirdaramani Group with two certified textile manufacturing plants and Linea Aqua (Pvt) Ltd, a subsidiary of MAS Holdings.
“In 2017, the two countries set up a target to reach USD 1 billion of bilateral trade, during a visit of Sri Lanka’s then Prime Minister, Ranil Wickremesinghe to Vietnam. “However this target has not been achieved yet.”
Despite the import restrictions the Trade balance for 2022 was in favour of Vietnam with their exports to Sri Lanka USD 255 million while Lanka imports slipped from USD 62 million in 2021 to 45 million in 2022. Imports from Sri Lanka to Vietnam were USD 100.58 million in 2018. Main exports from Sri Lanka to Vietnam are apparel, knitted or crocheted fabrics, oil-cake and other solid residues, different kinds of yarns, tea, refining copper and copper alloys.
Vietnam’s major exports to Sri Lanka include seafood, chemical products, plastic materials, rubber, fiber and yarns of all kinds, textiles, computers and Electronic Products and Cell Phones and Accessories. (CG)
by Daily News Sri Lanka
, Business, ,