India’s textile and garment shipments to Vietnam were up 44 per cent in 2017 while imports from Vietnam were up by 42 per cent. The two countries aim to bring bilateral trade to $15 billion by 2020.
Vietnam’s textile sector is growing rapidly but in an unbalanced manner due to restricted supply of raw material like cotton. So the country expects India to supply quality yarn and fabrics. And India is in a position to do this.
Vietnamese and Indian textile and garment firms see this as a good time to enhance links in investing, exporting materials and technical assistance for mutual benefit. Vietnam is one of the five largest textile and garment exporters in the world. However, the country is also one of the world’s leading importers of fabrics and materials. The shortage of high-quality materials for production is the biggest barrier to Vietnam’s textile and garment industry, hindering the country from taking advantage of free trade agreements. Cooperating with Indian businesses will be an effective measure to diversify material supply resources for Vietnam.
Trade promotion programs can help Indian businesses make deeper inroads into the Vietnamese market. These can also help Vietnamese businesses seek more material suppliers and learn from effective production models.