India is attracting Vietnamese investments particularly in garments and textiles. India allows 100 per cent FDI in single-brand retail via the automatic route, which means foreign investors can pour money into the market without prior permission. Vietnamese garment companies can take advantage of the policy by investing in production of threads, fabrics and ready-made clothes. The Indian market of 1.3 billion people is a tempting opportunity for investors.
Currently Vietnam and India are among the five leading garment exporters in the world. Last year, the value of Indian apparel exports to Vietnam grew 44 per cent while Vietnam’s shipment of garment and textile products to India grew by 42 per cent.
Improving trade transactions and connectivity has been classified as a strategic target by the two countries. They aim at bringing bilateral trade to $15 billion by 2020. Last year, Vietnam’s textile and garment exports were up 10.23 per cent from the same period last year while its imports of textile and garment materials, mostly yarns and fabrics, amounted to $19 billion. Between April 2017 and January 2018, Vietnam-India trade reached $10.39 billion, surpassing the $10.13 billion figure recorded from April 2016 to March 2017.