INDIA-VIETNAM TRADE AND ECONOMIC RELATIONS

India and Vietnam have long standing trade and economic relations which have steadily grown over a period of time. Total merchandize trade between India and Vietnam, according to the Department of Commerce of India, was US$ 18.28 billion in 2025-2026, an increase of 15.98% year-on-year. India’s exports to Vietnam amounted to US$ 6,665.86 million while exports by Vietnam to India stood at USD 11,615.23 billion. Trade was in favour of Vietnam to the tune of 4,949.37 million. Total merchandize trade for the year 2025, according to Customs Department of Vietnam, reached US$ 16.46 billion, registering an increase of 10.54% year-on-year. For Vietnam, India is Vietnam’s 9th largest trading partner of Vietnam, the 7th largest export markets and 10th largest import sources. For India, in FY 2025-2026, Vietnam is the 19th largest trading partner and 19th largest export destination and 19th largest import source globally. Vietnam is the 5th largest trading partner of India among ASEAN countries after Singapore, Indonesia, Thailand and Malaysia. During the visit of General Secretary and State President of Vietnam to India in May 2026, both countries agreed to explore substantive and practical measures to achieve the trade target of US$ 25 billion by 2030.

Major export commodities from India, in 2025-2026, according to the Department of Commerce, were meat and meat offals (US$ 934.01 million), aluminium and articles thereof (US$ 525.03 million), seafoods (US$ 522.08 million), iron and steel (US$ 496.68 million), machinery and equipment (US$ 326.36 million), electrical equipment (US$ 298.56 million), cereal (US$ 279.04 million), Animal feed ingredient (US$ 261.45 million) and auto components (US$ 246.06 million). Major commodities from Vietnam were Mobile phones & accessories and electronic items (US$ 4,885.80 million), machinery and equipment (US$ 1233.99 million), iron and steel (US$ 878.68 million), copper and article thereof (US$ 582.30 million), plastic and article thereof (US$ 452.77 million), inorganic chemicals (US$ 330.67 million), coffee, tea, mate and spices (US$ 290.47 million), aluminium and article thereof (US$ 280.54 million and glass and glassware (US$ 221.97 million).

Both sides have established institutional mechanism regarding trade related matter which include Joint Commission for Economic, Trade, Science and Technology Cooperation (JCM), Joint Trade Sub-Committee, Joint Working Groups on Agriculture, Healthcare and Information Technology, and Joint Sub-Committee on Science and Technology. The 18th meeting of the Joint Commission for Economic, Trade, Science and Technology Cooperation was held in Hanoi in October 2023, and the 5th meeting of the Joint Trade Sub-Committee 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 Joint Trade Sub-Committee 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://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 2025, according to Foreign Investment Agency of Vietnam, India had 53 fresh projects with total registered capital of US$ 3.19 million. As such, as of 2025, India has 473 valid FDI projects with total investment of US$ 1,117.53 million, ranking 26 among 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

According to the Department for Promotion of Industry and Internal Trade of India, as of 2025, Viet Nam has invested US$ 87.33 million primarily in the areas of automobile, air transports, 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, 66 projects have been sanctioned in 32 provinces of Vietnam out of which 56 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 provided technical assistance worth US$ 2.25 million for conservation and restoration of ancient Cham monuments located in the UNESCO world heritage site of ‘My Son’ Danang city of Vietnam, showcasing the deep civilizational connection between the two countries. During the first phase of conservation and restoration from 2017-2022, A, H and K group of temples was restored and conserved by the Archaeological Survey of India (ASI) and handed over to the Vietnamese side on 20 December 2022.  The next phase of conservation and restoration of E and F group of temples at ‘My Son’ sanctuary started in February 2025 by a technical team of Archaeological Survey of India. In 2025, ASI has completed the works of restoration of E2, E3, F2 temple along with enclosure wall. During the visit of General Secretary and State President of Vietnam to India in May 2026, India has approved the inclusion of Site Interpretation Centre in the ongoing project of Restoration of E&F Group at My Son, Thu Bon Commune, Danang city. India has 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. 

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(As on 17.07.2026)