On March 25, 2025, the 12th Asian Textile Conference (ATEXCON) took place in Mumbai, India, under the theme “Asia Leading Global Growth.” The event attracted key policymakers, experts, and leading enterprises in the regional textile and garment sector.
Representing Vietnam, Mr. Bui Trung Thuong, Trade Counsellor at the Vietnam Trade Office in India, attended and delivered a keynote address emphasizing the tremendous potential for textile cooperation between Vietnam and India, especially in light of U.S. countervailing duties that could significantly impact both countries’ exports to the U.S. market.
Complementary Strengths in the Textile Supply Chain
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According to Mr. Thuong, Vietnam ranks as the world’s third-largest textile exporter with a total export value of USD 44 billion in 2024, while India is one of the world’s leading suppliers of raw materials, particularly cotton and cotton yarn.
Currently, Vietnam depends on about 65% of its raw materials from China. Strengthening cotton and yarn imports from India would help diversify supply sources and reduce input costs by 22–27% thanks to preferential tariffs under the ASEAN–India Free Trade Agreement (AIFTA).
Three Key Initiatives to Enhance Cooperation
To promote deeper collaboration, the Vietnamese Trade Counsellor proposed three strategic initiatives:
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Establishing a Joint Investment Fund worth USD 500 million to build spinning mills in southern India and northern Vietnam, as well as a Smart Fabric Research Center in Ho Chi Minh City and Bangalore.
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Signing a Bilateral Preferential Tax Agreement to help enterprises reduce import-export costs and enhance competitiveness.
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Launching the Vietnam–India Textile Innovation Fund (VITEX) to finance joint R&D projects on green technology, technical textiles, and recycled materials.
Mutual Market Opportunities
India has a strong domestic demand for premium polyester fabric, valued at approximately USD 1.2 billion annually, while Vietnam can import Indian shuttleless looms, which are 30–40% cheaper than their European counterparts.
Leveraging these complementary advantages in technology and market demand could create a two-way supply chainthat benefits both sides.
Adapting to Global Policy Shifts
The newly imposed U.S. countervailing duties are expected to raise export costs for both Vietnam and India. This situation calls for swift regional cooperation strategies to reduce dependency on traditional markets and expand into FTA markets such as the EU, Japan, and South Korea.
Amid the ongoing global supply chain restructuring, Mr. Thuong emphasized:
“Vietnam–India cooperation is not just an opportunity but a survival strategy — enabling both nations to overcome disruptions and lead the wave of green and sustainable growth in the global textile industry.”