Nearly 70 Indian textile and garment companies are looking for opportunities to invest in Vietnam’s garment and textile industry especially in production and supply chains of materials for the sector. Advantages for Indian firms investing in Vietnam include: fairly developed infrastructure, abundant and cheap workforce, and stable security. Specific textile projects are calling for investment in central Vietnam with advantages relating to location, procedures and services supporting investment in industrial parks.

India has a plan to provide such enterprises with an assistance package worth $100 million. Indian firms have however expressed their concern about credit loans for investment in Vietnam and the possibility of forming bonded warehousing in the country.

Vietnam is also looking to Indian investment in new business sectors where India has advantages -- infrastructure and power generation and distribution, IT, education and pharmaceutical research. Vietnam is now one of the leading investment destinations in Asean. It is now one of the top three Asean exporters to the US, ahead of Thailand and Malaysia. Vietnam accounts for 20 per cent of Asean exports to the US, and, if present trends continue, it will have a market share of more than 30 per cent by 2020.