At an April 16 recent seminar on trade exchange between Vietnamese and Mongolian businesses in HCM City, Regzenda Sandag said the Mongolian economy is based mainly on agriculture and industry in which the government is intensifying action plans for development and international economic integration.

Mongolia has a list of hundreds of imported goods enjoying the EU’s low tax rates and is nearing the final stage for the signing a free trade agreement (FTA) with Japan.

As a result, investors in Mongolia, especially those operating in industrial parks will benefit from incentives regarding tax exemption and financial assistance.

As for the textile industry, Mongolia is keen on sharing expertise with HCM City to seek ways of boosting mutually beneficial cooperation in the garment industry.

According to Vietnam Textile and Apparel Association (Vinatex) Southern Office Deputy Head Nguyen Binh An, the Vietnamese textile industry achieves an average annual growth of 15-20%, producing 3 billion products per annum and employing approximately 2.5 million workers .

The Vietnamese Government’s incentive policy has helped the textile industry to promote global integration and become an attractive business area for the global garment and textile producers.

Therefore, in the process of forming supply chain - including spinning - weaving – sewing and dyeing, the Vietnamese garment and textile sector needs the participation and cooperation of the countries with huge potential for materials,including Mongolia.

HMC City-Mongolia trade turnover hit more than US$3 million last year and nearly US$500,000 in the first quarter of this year.

HCM City’s Department of Industry and Trade Deputy Director Tran Xuan Dien highlighted great prospects for cooperation in the textile industry between Ho Chi Minh City and Mongolia.The city has many advantages in labour force, production capacity and the market's potential, while Mongolia has advantages in material resources and incentives to attract investors.

However, language barriers and the long geographical distance pose big challenges to businesses, which need to be overcome in order to seize cooperation opportunities for goods transport and trade exchange, Dien noted.