Standard Chartered: VN may increase high-potential exports to India by US$633 million

Standard Chartered: Viet Nam could increase high-potential exports to India by US$633 million annually, or 10%.

According to the report, India and Viet Nam have a strong bond, with trade relations strengthened by the implementation of the ASEAN Free Trade Area and India’s Act East policy.

India is now one of Viet Nam’s top 10 trading partners, and Viet Nam ranks as India’s fourth-largest ASEAN trading partner.

With global uncertainty forcing corporates to consider diversifying their supply chains away from China, the India-Viet Nam trade route could become increasingly important for international businesses, the report stated.

Regarding Viet Nam’s export value to India, there is slightly more room for increasing goods exports (USS339 million) than services (USS294 million).  

Standard Chartered: India could increase high-potential exports to Viet Nam by US$475 million, or 12%.

Meanwhile, the report suggested India could increase high-potential exports to Viet Nam by US$475 million, or 12%.

The opportunities sit relatively equally between goods (US$273 million) and services (US$201 million).

Vietnamese and Indian efforts to grow trade between the two markets have clearly been working, with bilateral trade growing at the steepest rate ever recorded.

As Viet Nam plays an increasingly important role in global supply chains, its relationship with India is likely to strengthen further – especially with India investing close to US$2 billion in over 200 projects in Viet Nam.

Standard Chartered: Viet Nam and India trade value may increase by US$1 billion each year.

“As this study shows, India presents many opportunities for Vietnamese companies seeking new and fruitful avenues for growth” said Nirukt Sapru, Chief Executive Officer, Viet Nam and ASEAN & South Asia Cluster Markets, Standard Chartered.

Earlier at the conference held online by the Viet Nam Chamber of Commerce and Industry (VCCI) and the Engineering Export Promotion Centre (EEPC) of India in late September, 2020, the bilateral trade exceeded US$11.2 billion last year, with Viet Nam’s exports to India worth over US$6.6 billion.

In the first seven months of this year, the trade value reached more than US$5 billion, including nearly US$2.6 billion worth of Viet Nam’s exports to India.

In terms of investment, as of April 2020, India ranked 26th out of 136 countries and territories investing in Viet Nam, with a total of 272 projects valued at US$887 million, mostly in oil and gas, mining, IT and agriculture.

By Thuy Dung