The textile industries of India and Vietnam can cooperate for mutual benefit. With its large population, India is a potential export market for Vietnam garment industry. Vietnam has a large Indian population with a high demand for fashion.
Despite achieving impressive growth in garment and textile exports, Vietnam relies heavily on imported raw materials. Vietnam’s main imports of textile products from India are polyester viscose and synthetic fabrics, polyester wool fabrics, and polyester filament yarn.
The Indian government has endorsed a credit program to promote India-Vietnam garment cooperation worth $300 million. Based on this program, the two sides are considering the establishment of the first Indian garment industrial zone in Vietnam. Indian businesses can concentrate their production lines with the best infrastructure system access, reducing production costs while supplying materials for Vietnamese enterprises with updated technology, best quality and highly competitive prices.
The credit package will not only help Indian businesses develop factories there but also stimulate Vietnamese companies to expand cooperation with Indian partners. The successful development of such a garment industrial zone will serve as a strong basis for the establishment of another industrial zone in Vietnam.