INDIA-VIETNAM TRADE AND ECONOMIC RELATIONS
India and Vietnam has long standing trade and economic relations which have steadily grown over a period of time. From a meagre US$200 million in the year 2000, according to Vietnamese figure, bilateral trade grew to US$ 14.36 billion in 2023. According to Indian data during 2023-2024, bilateral trade reached US$ 14.82 billion, registering an increase of 0.76 percent year on year. India exports to Vietnam reached US$ 5.47 billion (down 7.43%) while Indian imports from Vietnam amounted to 9.34 billion (up 6.26%). In FY 2023-2024, For India, Vietnam is the 21st largest trading partner and 22nd largest export destination globally. For Vietnam, India is the 7th largest trading partner, 7th biggest importer of Vietnam’s products and 11th biggest import source of Vietnam.
In FY 2023-2024, key items of exports from India to Vietnam include frozen bovine meat, cereal, iron and steel, cotton, animal fodder & materials, fishery products, electrical equipment, machinery and equipment, aluminum, auto component, chemical and chemical products, ordinary metals, pharmaceuticals and API as well as gems & jewellery. Key items of imports into India from Vietnam were electronic equipment, telecom equipment, machinery and mechanical appliances, iron and steel, ordinary metals, chemicals and chemical products, article of plastic, products of steel, footwear and garment, garment and textile materials, auto components, wood and wooden products, rubber, coffee etc.
Both sides have established institutional mechanism regarding trade related matter which include Joint Committee for Economic, Trade, Science and Technology Cooperation (JCM), Sub-Committee on Trade, Joint Working Groups on Agriculture, Healthcare, ICT and S&T. The 18th meeting of the Joint Committee for Economic, Trade, Science and Technology Cooperation was held in Hanoi in October 2023 while the 5th meeting of the Sub-Committee on Trade was held in New Delhi in August 2023. The JCM meeting was co-chaired by Hon’ble Minister of External Affairs of India and Minister of Foreign Affairs of Vietnam. The 5th Meeting of Sub-Committee on Trade was co-chaired by Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry from Indian side and Ms. Phan Thi Thang, Deputy Minister, Ministry of Industry and Trade from Vietnam side. Both sides are discussing the review of ASEAN India Free Trade Agreement.
Bilateral trade profile for the last few years is shown below.
For detailed trade statistics, please visit the website of Department of Commerce, Government of India at: https://commerce.gov.in/InnerContent.aspx?Type=TradeStatisticsmenu&Id=254
India’s Investments in Vietnam
India’s investments in Vietnam are estimated at around US$ 2 billion including investments routed through third countries. During the period from Jan - Dec 2023, according to Foreign Investment Agency of Vietnam, India had 53 fresh projects with total value of US$ 131.90 million. As such, India has 392 valid projects with total invested capital of US$ 1,119 million, ranking 23th among 144 countries and territories investing in Vietnam. Major sectors of investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components.
Vietnam’s Investments in India
As of 2022, Vietnam has six investment projects in India with total estimated investment of US$ 28.55 million, primarily in the areas of pharmaceuticals, information technology, chemicals and building materials.
Development Partnership
India has a long-standing development partnership with Vietnam that has made positive contributions towards capacity building and socio-economic development of Vietnam. India has also been providing assistance to Vietnam within the ASEAN framework. Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up Quick Impact Projects (QIPs), each valued at US$50,000, in different provinces of Vietnam for development of community infrastructure. With their short gestation period, the QIPs bring direct benefits to communities at the grassroots level. So far, since 2017, 56 projects have been sanctioned in 42 provinces of Vietnam out of which 46 have already been completed and 10 are under implementation. During the virtual summit between the Prime Minister of India and Vietnam on 21 December 2020, the number of QIPs project has been increased from 05 to 10 per year to be implemented annually in Vietnam. India also provided technical assistance worth US$ 2.25 million for conservation and restoration of ancient Cham monuments located in the Quang Nam Province of Vietnam, showcasing the deep civilizational connection between the two countries.
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