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Economic & Commercial Brief on website of Embassy of India, Hanoi (18 July 2019)

Bilateral trade between India and Vietnam has seen continuous growth over the past many years. Bilateral trade, according to Indian data, during 2018-2019 reached US$13,699.61 million, registering an increase of 6.76 percent year on year. Total trade value between the two countries accounts for 1.62 percent of India’s total foreign trade. Vietnam is the 19th largest trading partner and 11th largest destination of India’s exports globally. Vietnam is the second largest export destination for Indian products after Singapore in the ASEAN region. Vietnam is the 4th largest trading partner of India among ASEAN countries after Indonesia, Singapore and Malaysia. India is now among the top ten trading partners of Vietnam. Leaders of both countries have set a trade target of US$15 billion by 2020. Five key items exported to India were mobile phones and components, machinery, computers & electronic hardware, natural rubber, chemicals and coffee. Key items exported to Vietnam from India were meat and fishery products, corn, steel pharmaceuticals, cotton and machinery.

India’s investments in Vietnam are around US$ 1.7 billion but are expected to rise in the coming years. According to the Foreign Investment Agency, during the first six months of 2019, India registered 30 fresh projects with total capital of US$21.74 million. As such, India has 233 valid projects with total invested capital of US$913.83 million, ranking 26th among countries and territories investing in Vietnam. The figures from Vietnam do not include Indian investment from third countries. Major sectors of investment are energy, mineral exploration, agro-processing, sugar manufacturing, agro-chemicals, IT and auto components. Vietnam has six investment projects in India with total investments of US$ 28.55 million. Vietnamese companies are investing in the area of pharmaceuticals, information technology, chemicals and building materials. Indian companies are investing in energy, mineral exploration, agro-processing, sugar manufacturing, agro-chemicals, IT, and agricultural processing.

For the latest trade data, please visit http://commerce.nic.in/MOC/trade_statistics_india.asp.

Trade data for the last few years is shown below.