Indo-Vietnamese Trade: A Strategic Partnership For The Future

The recent three-day visit of Vietnamese Prime Minister, Pham Minh Chinh, to India marks a pivotal milestone in Indo-Vietnamese bilateral trade partnerships. With an agenda to strengthen their trade ties, both countries explored new opportunities to expand their reach into each other’s markets to foster economic cooperation. Read on to understand the impact of this growing partnership.

Key takeaways of the visit of Vietnamese Prime Minister

The visit of the Vietnamese Prime Minister comes at an important time, when the global trade forefront is facing unprecedented challenges and changing geopolitical landscapes, especially with the Russia-Ukraine and Israel-Palestine conflicts. To establish regional stability, both leaders aimed at working together for mutual benefit.

During his stay, the Vietnamese Prime Minister aimed at strengthening cooperation in several industries, including semiconductor technology, along with an emphasis on digital transformation, renewable energy, pharmaceuticals, green energy, and biotechnology.

And not to say, both nations have seen quite remarkable growth in their trade over the past few years. In fact, in 2023, the bilateral trade between India and Vietnam grew by 0.76%, reaching an approximate total of $14.82 billion.

This year-on-year increase is not just a value of economic prosperity; it is a reflection of the strategic alignment between both nations. With such a profound growth rate, Indo-Vietnamese relations are indeed expected to play an essential role in the long run. For more insights about Indo-Vietnamese trade, visit The Dollar Business.

While foreign trade was just one aspect of their meeting, the visit also emphasized the importance of regional connectivity, maritime security, and defense to strengthen global south international affairs.

Interestingly, the Prime Minister of Vietnam brought to light the cultural history that binds India and Vietnam. He shared how both nations have had a long struggle against colonialism and have a deep regard for each other's customs and traditions. With this, he strongly believes the Indo-Vietnamese bilateral trade relation can be even more sustainable and resilient.

The plan of action
With this meeting, both nations focused on building a comprehensive strategic partnership between 2024 and 2028. In fact, Pham Minh Chinh proposed a yearly bilateral trade target of approximately $20 billion. To reach this, both nations have agreed to expedite the review of the ASEAN-India Trade in Goods agreement.

In a nutshell
All in all, the recent visit of the Vietnamese Prime Minister to India holds great promise and serves as a reminder of the immense potential that lies ahead in terms of economic development, peace, and stability of both regions. With a strong commitment to cooperation and mutual growth, the visit has set the stage for realizing shared aspiration for the greater good.

Frequently Asked Questions (FAQs)

●  Does India trade with Vietnam?

- Yes, India does trade with Vietnam. In fact, India is the 7th largest trading partner for Vietnam.

●  What does India import from Vietnam?

- India imports several products from Vietnam, including tools, raw skins and hides, oil seed, oleagic fruits, and cutlery of base metal, to name a few.

●  What items are exported from India to Vietnam?

- India exports several products to Vietnam, including machinery, electrical equipment, cotton, iron, and steel, cereals, aluminium, and animal fodder, to name a few.