India recently organised a conference, entitled “Textiles: India-Vietnam Cooperation, Partners in Progress”, in the Ho Chi Minh City with an aim to boost trade relations between the India and Vietnam in textiles. Vietnam being an important part of the Indian government’s Look East policy, the country has invested about $814 million through 176 projects in Vietnam, ranking 28th among 126 countries and territories investing in the country. Indian businesses exported textiles and garments worth $429 million to Vietnam in 2017, up 44 percent from 2016, and accounting for a small part of Vietnam’s textile and garment material import demand.

Also, many Indian textile and garment companies have invested in Vietnam, and Vietnamese textile and garment enterprises can develop ready-made garment production in India to meet the need of its 1.3 billion people. Under India’s “automatic route” policy, foreign investors can invest in India without seeking advance government approval. Vietnamese companies can take advantage of this policy and the market potential to produce yarns, fabrics and ready-made garments in India.