To prevent over-dependence on a single market, and to make the most of trade agreement advantages, Vietnamese textile and garment businesses are looking for new material suppliers beyond China and India is on the radar. Vietnam feels the material available in India for textiles and garments is of high quality and diverse. Moreover, under the Asean-India free trade agreement, the two sides are committed to reducing taxes for many kinds of goods, including textiles and garments. This offers Vietnam ideal conditions to import from India.

While Vietnamese businesses are good at weaving and sewing, they are weak at dyeing. And Indian companies are good at it. Therefore, the two sides should cooperate in this field. Over the last decade, the Vietnamese textile and garment sector has gradually decreased its dependence on China. A decade ago, Vietnam imported 75 to 80 per cent of its textile and garment materials from China. By 2014, this figure dropped to about 45 per cent. India has replaced China to become the second largest cotton supplier. Fabric imports from India have grown 60 per cent.

Textiles and garments are among Vietnam’s key exports, and diversifying material supply sources is one of the measures domestic businesses have taken to ready themselves for new opportunities from the upcoming trade agreements.