Vietnam is a crucial partner for India’s Act East policy and bilateral relations, including investment flow, is growing steadily, Vietnamese Prime Minister Pham Minh Chinh has said.

Chinm is on a three-day official visit to India aimed at deepening economic and strategic ties and is scheduled to hold a bilateral meeting with Prime Minister Narendra Modi on Thursday.

“Vietnam is a crucial partner for India’s Act East policy. Investment between India and Vietnam is growing, with bilateral relationships expanding steadily over the years,” Chinh said addressing businesses at the Vietnam–India Business Forum organised by industry body FICCI on Wednesday.

The visit of the Prime Minister of Vietnam to India and the engagements with Indian businesses will pave the way for greater mutual understanding and exploration of each other’s markets, said Minister of State for Commerce & Industry Jitin Prasada is his address at the business forum.

Chinm will also meet External Affairs Minister S Jaishankar and call on President Droupadi Murmu and Vice-President Jagdeep Dhankhar during his visit.

Bilateral trade

Economic ties between India and Vietnam have been steadily growing over the past two decades with bilateral trade increasing to $14.36 billion in 2023 from $200 million in 2000, according to Vietnamese figures.

In 2023-24, Vietnam was the 21st largest trading partner for India with bilateral trade at $14.36 billion, per data from the Indian government.  For Vietnam, India was the seventh largest trading partner, 7th biggest importer of Vietnam’s products and 11th biggest import source of Vietnam.

Both countries are part of the India-ASEAN Free Trade Agreement and are currently engaged in the process of reviewing the pact for greater market access.

India’s exports to Vietnam were at $5.47 billion during the fiscal while imports were at $9.34 billion.

India’s key exports to Vietnam include frozen bovine meat, cereal, iron and steel, cotton, animal fodder & materials, fishery products, electrical equipment, machinery and equipment, aluminium, auto component, chemical and chemical products, ordinary metals, pharmaceuticals and API as well as gems and jewellery.

Its primary imports from Vietnam include electronic equipment, telecom equipment, machinery and mechanical appliances, iron and steel, ordinary metals, chemicals and chemical products, article of plastic, products of steel, footwear and garment, garment and textile materials, auto components, wood and wooden products, rubber, coffee etc.

Related Topics