INDIA-VIETNAM TRADE AND ECONOMIC RELATIONS
India and Vietnam has longstanding trade and economic relations which have steadily grown over a period of time. From a meagre US$200 million in the year 2000, according to Vietnamese figure, bilateral trade grew to US$ 14.89 billion in 2024. According to the Indian data for the year April 2024 – March 2025, bilateral trade reached US$ 15.76 billion, registering an increase of 6.40 percent year on year. India exports to Vietnam amounted to US$ 5.43 billion (down 0.75%) while Indian imports from Vietnam amounted to 10.33 billion (up 10.59%). In FY 2024-2025, Vietnam is India’s 20th largest trading partner and 15th largest export destination globally. India is Vietnam’s 8th largest trading partner, the 7th largest export market and the 10th largest import source.
In Financial Year 2024-2025, key items of exports from India to Vietnam include frozen bovine meat, fishery products, machinery and equipment, electrical equipment, auto component, pharmaceutical and API, chemicals, ordinary metals, cereal, cotton, animal fodder and 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, article of plastic, products of steel, footwear, garment, textile materials, wood, rubber, coffee, etc.
Both sides have established institutional mechanism in the economic field which include Joint Commission for Economic, Trade, Science and Technology Cooperation (JCM), Joint Trade Sub-Committee, Joint Working Groups on Agriculture, Healthcare, ICT and Science and Technology. The 18th meeting of the Joint Commission for Economic, Trade, Science and Technology Cooperation, co-chaired by Hon’ble Minister of External Affairs of India and Minister of Foreign Affairs of Vietnam was held in Hanoi in October 2023. The 5th meeting of the Joint Trade Sub-Committee, co-chaired by Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry and Ms. Phan Thi Thang, Deputy Minister, Ministry of Industry and Trade, was held in New Delhi in August 2023. Both sides are participating in the review of ASEAN India Trade in Goods Agreement (AITIGA), which is expected to be concluded by end – 2025..
Bilateral trade profile for the last few years is shown below.
Detailed trade statistics are available at the website of Department of Commerce, Government of India at:
https://tradestat.commerce.gov.in/eidb/country_wise_all_commodities_import
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 2024, according to Foreign Investment Agency of Vietnam, India has 48 fresh investment projects valued at US$ 86.69 million. As of 2024, India has 432 valid FDI projects with total registered investment of US$ 1,095.33 million, Major sectors of investment are energy, mineral exploration, agro-processing, sugar, tea, coffee, consumer goods, agro-chemicals, IT and auto components.
Vietnam’s Investments in India
According to the Department for Promotion of Industry and Internal Trade of India, as of 2024, Viet Nam has invested US$ 12.69 million in the areas of pharmaceuticals, information technology, chemicals and building materials. The figure of investment by Vietnam does not include the investment by M/s VinFast which is setting up an electric vehicle manufacturing plant at SIPCOT industrial estate in Thoothukudi, Tamil Nadu with total initial investment of US$ 500 million which is at an advanced stage of completion.
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. These include grants concessional credits, education and training scholarship and cooperation project in various areas. Some of the earlier development projects are tabulated below:
- Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up about 10 Quick Impact Projects (QIPs) per year in Vietnam, each valued at US$50,000, for development of community infrastructure and facilities such as classrooms at school, community homes etc. So far, since 2017, 56 projects have been sanctioned out of which 46 have already been completed in 42 provinces/localities and 10 are under implementation.
- India provided technical assistance of US$ 2.25 million for conservation and restoration of ancient monuments (A,H,K Groups of temples) at My Son Sanctury, located in the Quang Nam Province of Vietnam, showcasing the old civilizational connection between the two countries. After completion of these projects, two more restoration works (E&F) group of temples were started in February 2025 which are expected to last for about 5 years.
- India also provided grant assistance of US$ 1.1 million for establishment of Centre of Excellence for Software Development and Training (CESDT) at the Post and Telecommunication Institute of Technology in Ho Chi Minh City which was inaugurated in November 2024.
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