A representative of the Indian Consulate General in Ho Chi Minh City recommended Vietnamese companies look for investment opportunity in the Indian market of 1.3 billion people, particularly in garment and textiles.
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 percent to 429 million USD, while Vietnam’s shipment of garment-textile products to India reeled in 178 million USD, an annual increase of 42 percent.
The Indian Government is allowing 100 percent 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 10.39 billion USD, surpassing the figure of 10.13 billion USD 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 15 billion USD by 2020.
Last year, Vietnam exported 31 billion USD worth of textile and garment products, up 10.23 percent from the same period last year while its imports of textile and garment materials, mostly yarns and fabrics, amounted to 19 billion USD.