Bharat Newz 24*7
India and Vietnam have witnessed remarkable growth in bilateral trade and investment relations in recent years. As two rapidly growing economies in Asia, both countries are strengthening their strategic partnership through enhanced economic collaboration, infrastructure investment, and sectoral cooperation.
Rising Bilateral Trade Between India and Vietnam
According to recent data, India–Vietnam trade reached approximately USD 15 billion in 2024, reflecting a 4.5% year-on-year increase. Vietnam’s exports to India, which include mobile phones, electronics, machinery, and agricultural products, grew by 7.6% to USD 9.06 billion. India’s exports to Vietnam—consisting mainly of iron and steel, pharmaceuticals, and textiles—stood at USD 5.8 billion.
While trade volumes are increasing, India continues to face a trade deficit with Vietnam. Some Indian products, particularly in the electronics and engineering sectors, face non-tariff barriers and import duties in the Vietnamese market. Addressing these challenges could significantly boost bilateral commerce.
Investment Opportunities and Strategic Cooperation
India’s investment in Vietnam is estimated at USD 2 billion, covering sectors such as agro-processing, sugar, tea, coffee, IT, consumer goods, and auto components. Meanwhile, Vietnam’s investment in India reached USD 12.69 million, focusing on pharmaceuticals, chemicals, IT, and building materials.
New avenues such as renewable energy, artificial intelligence, cloud computing, and semiconductors are emerging as key drivers of cooperation. With both nations emphasizing digital transformation, green growth, and supply chain diversification, the outlook for economic relations remains optimistic.
Tourism: An Untapped Potential
Tourism is another sector with immense scope for collaboration, especially between Eastern India and Vietnam. Improved air connectivity and Vietnam’s introduction of a 10-year Golden Visa Program offer new opportunities for cross-border tourism. Given Vietnam’s proximity to India’s eastern coast and the rising interest among Indian travelers, boosting tourism can further enhance cultural and economic bonds.
Strategic Initiatives and the Vietnam Desk Proposal
In line with the evolving India–Vietnam trade relations, the Bharat Chamber of Commerce has proposed establishing a Vietnam Desk in Kolkata. This platform would help facilitate bilateral trade, investment opportunities, and cultural exchange. It would also support businesses seeking market access, partnerships, and administrative guidance in both countries.
The India–Vietnam Comprehensive Strategic Partnership (2024–2028) covers cooperation in customs, agriculture, legal frameworks, media, defense, and heritage preservation. With India extending a USD 300 million line of credit to strengthen Vietnam’s maritime security and investing in defense technology like the Army Software Park in Nha Trang, the collaboration is expanding on all fronts.
The India–Vietnam trade and investment relations are growing steadily with great potential across multiple sectors. By resolving existing trade challenges and leveraging strategic initiatives like the Vietnam Desk, both nations can unlock new economic opportunities and further solidify their partnership in the Indo-Pacific region.
