India and Vietnam are targeting $15 billion in bilateral trade by 2020. Indian businesses have invested in 201 big projects in Vietnam. The country earned $257 million from selling garments and textile products to Vietnam between April and August of the current fiscal, increasing by 59 per cent than the same period in the last fiscal.

In the first nine months of 2018, the bilateral trade reached $8.27 billion, increasing by 47 per cent over the same period in 2017. In fiscal 2017-2018, India’s global exports of garments and textile were worth $36.73 billion, including $555 million to Vietnam, up 42 per cent over the previous fiscal.

As per a FTA between India and the Association of South East Asian Nations (ASEAN), Indian exports of cotton, woven cotton fabric and knitted fabric to Vietnam will enjoy tax exemption from January 1, 2019 making it a competitive supplier of such materials and machines to Vietnam.