Currently Vietnam and India are among the five leading garment exporters in the world. Last year, the value of India apparel exports to Vietnam grew 44% to US$429 million, while Vietnam’s shipment of garment-textile products to India reeled in US$178 million, an annual increase of 42%.
The Indian Government is allowing 100% foreign direct investment (FDI) in single-brand retail via automatic route, which means foreign investors can pour money into the market without prior permission from the authorities. Vietnamese garment companies can take advantage of the policy by investing in the production of threads, fabrics and ready-made clothes.
It was estimated that between April 2017 and January 2018, Vietnam – India trade reached US$10.39 billion, surpassing the figure of US$10.13 billion recorded from April 2016 to March 2017.
Improving trade transactions and connectivity have been classified as a strategic target by the two countries’ leaders.
The two countries aim to bring bilateral trade to US$15 billion by 2020.
Last year, Vietnam exported US$31 billion worth of textile and garment products, up 10.23% from the same period last year while its imports of textile and garment materials, mostly yarns and fabrics, amounted to US$19 billion.