Sri Lanka, Vietnam mull tractor plant, garment ventures

Sept 15, 2011 (LBO) - Vietnam is considering setting up a tractor plant in Sri Lanka and also joint ventures in garment manufacture, the island's ministry of industry and commerce said in a statement. "Vietnam is keen to import more coconuts from Sri Lanka, collaborate in garment manufacturing and also to set up a manufacturing plant for two wheel tractors here," it said.

The investment opportunities were discussed during a meeting between Vietnam’s ambassador to Sri Lanka Ton Sinh Thanh and Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka.

Ambassador Sinh Thanh was quoted as saying that Vietnam is keen to explore setting up of a two-wheel tractor manufacturing facility in Sri Lanka for the Sri Lankan market.

"Also, among the promising Sri Lankan products to the Vietnam retail market which is about 80 million US dollars are coconuts and gems. Vietnam likes to import Sri Lankan coconuts in the million-nuts volumes."

He also said Vietnam and Sri Lanka can jointly produce garments by combining production chains.

"Sri Lanka can make use of Vietnam’s low labour costs," Sinh Thanh told Bathiudeen.