India is seeking investment opportunities in Vietnam. India is one of the major material suppliers to Vietnam’s garment and textile sector but trade value between the two sides remains modest. The two sides have defined garment and textiles as a prioritised sector in bilateral ties.

For 2017-2018 fiscal year, India’s garments and textiles exports to Vietnam were up 42 per cent over the previous fiscal year. From April to August 2018, India’s earnings from selling garment and textile products to Vietnam were up 59 per cent over the same period a year earlier. Although trade of garment and textile between the two countries has enjoyed impressive growth in the past two years, the two sides have much potential to boost partnership in the area.

In the first 10 months of 2018, bilateral trade was up 47 per cent over the same period in 2017, bringing the countries closer to the target of 15 billion dollars in two-way trade in 2020. Under the free trade agreement between India and Asean, most cotton and woven cotton fabric and knitted fabrics imported from India will enjoy tax exemption from January 1, 2019, making India a competitive supplier of garment and textile materials and machines for Vietnam.