Vietnam will be enjoying tax exemption on cotton, woven cotton fabric and knitted fabric imported from India soon.
According to the free trade agreement between India and the Association of South East Asian Nations (ASEAN), Vietnam will start availing the tax benefits from 1 January 2019.
It is worth noting that India generated US $ 257 million by exporting apparels and textiles to Vietnam during the period April to August in the current fiscal – a noteworthy surge of 59 per cent from the same period in the last fiscal.
January to September in 2018 saw the trade between Vietnam and India touch US $ 8.27 billion, which is a 47 per cent jump from the first 9 months of 2017.
Both the nations intend to clock US $ 15 billion in bilateral trade by the year 2020.
Reportedly, in 2017-2018 fiscal, India’s worldwide export of apparels and textiles was US $ 36.73 billion, of which US $ 555 million was exported to Vietnam. This is a jump of 42 per cent from what it was in the last fiscal.
