Edit: Changing Question: There are two questions related questions:
extending a smooth vector field
extending a vector field defined on a closed submanifold
I'm trying to answer a question which is a generalization of this, namely:
Suppose $M$ is a smooth manifold, $E\to M$ is a smooth vector bundle, and $S\subset M$ is an embedded submanifold with or without boundary. For any smooth section $\sigma$ of the restricted bundle $E|_S\to S$, show that there exists a neighborhood $U$ of $S$ in $M$ and a smooth section $\tilde{\sigma}$ of $E|_U$ such that $\sigma=\tilde{\sigma}|_S$.
I'm not sure where to go. In the case where the bundle is the tangent bundle, this is doable by going to slice charts and extending the functions in a particular basis. However, in this case the same idea doesn't work.
Any ideas?