India, which supplies 2 percent of the inputs used by the Vietnamese textile and garment industry, wants to increase it to 25 percent in the next five years, according to the Cotton Textiles Export Promotion Council of India (TEXPROCIL).

Speaking at a Vietnam – India Textile and Garment business forum in Ho Chi Minh City on August 8, TEXPROCIL's Chairman Manikam Ramaswami said Vietnam was the fifth largest garment and textile exporter in the world and had achieved an impressive growth rate.

However, it had to import a lot of the raw materials while India was the world's second largest producer of materials like cotton, cloth and fibre, he said.

Cooperation between the two countries would help Vietnamese enterprises diversify their raw material sources and sell high-quality products to the international market, he added.

Siddhartha Rajagopal, TEXPROCIL's executive director, said Vietnam needed huge quantities of right-priced, quality woven and knit fabrics to continue its growth momentum.

" India could be an economical source of quality yarns and fabrics to bridge the gap and make garments even more competitive for Vietnam ."

Vietnam's import of yarns and fabrics from India accounted for only 2 percent of its needs, and India ’s aim is “to look at a 25 percent market share in the short term," he added.

Deputy Director General of the Vietnam Trade Promotion Agency Bui Thi Thanh An said trade between Vietnam and India sharply increased in recent years, reaching 5.2 billion USD last year, of which Vietnam's exports accounted for 2.3 billion USD.

Garment and textile trade also saw considerable growth in recent years, she said.

The Indian delegation, which visited Vietnam from August 4-8 to explore business opportunities, comprised executives from 12 leading textile and garment companies.-VNA