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INDIA-VIETNAM TRADE AND ECONOMIC RELATIONS

From a meagre US$ 200 million in the year 2000, bilateral trade between India and Vietnam has seen steady growth over the years. According to Indian statistics for Financial Year 2021-22, bilateral trade between India and Vietnam posted a growth of 27 % and reached US$ 14.14 billion. Indian exports to Vietnam reached US$ 6.70 billion (increase of 34%) while Indian imports from Vietnam amounted to US$ 7.44 billion (increase of 21%). In FY 2021-22, for India, Vietnam was the 23rd largest trading partner globally and the 4th largest within ASEAN, following Singapore, Indonesia and Malaysia.

In FY 2021-22, key items of exports from India to Vietnam included iron and steel, cotton, cereals, meat and fishery products, electrical machinery and equipment, machinery and mechanical appliances, auto parts, articles of stone, cement, plaster, paper and paper articles, inputs for leather articles, chemical products, organic and inorganic chemicals, pharmaceutical products, minerals and its products as well as animal feed. Key items of imports into India from Vietnam were electrical and electronic equipment, chemicals, machinery and mechanical appliances, articles of plastic, copper and rubber, coffee, tea and spices, iron and steel and their articles, footwear, fertilizers, animal feed, inorganic chemicals, metals, silk, optical, medical and surgical equipment.

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$ 1.9 billion including investments routed through third countries. According to Vietnam’s Foreign Investment Agency, as of December 2021, India has 313 valid projects with total invested capital of US$ 910.4 million in Vietnam, ranking 25th among countries and territories investing in Vietnam. Major sectors of Indian investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components.

Vietnam’s Investments in India

As of 2021, 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$50,000, in different provinces of Vietnam for development of community infrastructure. With their short gestation period, the QIPs bring direct benefits to communities at the grassroots level. During the Virtual Summit between the Prime Ministers of India and Vietnam on 21 December 2020, it was decided to raise the number of QIP projects from 05 to 10 per year to be implemented annually in Vietnam. So far, since 2017, 27 QIPs have been completed in 23 provinces of Vietnam, while 10 new projects are under implementation in 10 provinces.  In addition, 7 grant-in-aid assistance projects for the benefit of the Cham community in Ninh Thuan province were completed in December 2020 with an outlay of around US$ 1.54 million. India is also providing technical assistance worth US$ 2.25 million for conservation and restoration of ancient Cham monuments at the World heritage Site of My Son in Quang Nam Province of Vietnam, showcasing the deep civilizational connection between the two countries. The conservation work has been carried out by the experts from the Archaeological Survey of India.