While Indian companies already export two percent of their raw garment and textile materials to Vietnam annually, and they seek to increase their market share to 25 per cent over the next few years. The Ministry of Industry and Trade (MoIT) has said that the two-way trade turnover in the garment sector has witnessed robust growth in recent years especially, after the signing of a Free Trade Agreement between ASEAN and India in 2010. In 2013, Vietnam imported $419 million worth of textile materials from India, up 36 percent compared to 2012′s figure.
Vietnam Customs statistics show that in the first seven months of 2014, India exported cotton, fibre, and fabric to Vietnam, earning $224 million, $39.2 million and $30.96 million respectively. India’s export turnover of garment, leather, and footwear accessories to Vietnam also garnered $58 million.
The Cotton Textiles Export Promotion Council of India (TEXPROCIL) sent 20 companies to Vietnam in February 2014 to explore the market and seek partnerships. In August, 12 Indian garment companies also arrived in HCM City for an exchange program to facilitate business connectivity between the two countries.