Hanoi

India and Vietnam, with historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations. India has a long-standing development partnership with Vietnam that has made positive contributions towards capacity building, Sustainable Development Goals and socioeconomic development of Vietnam.

Bilateral trade between India and Vietnam has seen steady growth over the years. According to Indian statistics, during FY 2020-21, bilateral trade between India and Vietnam reached US$ 11.12 billion, with Indian exports to Vietnam amounting to US$ 4.99 billion and Indian imports from Vietnam at US$ 6.12 billion.

An estimated 5500 people from India, including some short-term visitors, constitute the Indian community in Vietnam.

Main Indian export basket to Vietnam include iron and steel, cotton, cereals, meat and fishery products, electrical machinery and equipment, auto parts, articles of stone, cement, plaster, paper and paper articles, inputs for leather articles, organic and inorganic chemicals, pharmaceuticals as well as animal feed. During the same period, India’s import baskets from Vietnam mainly included electrical and electronic equipment, inorganic chemicals, machinery and mechanical appliances, articles of plastic, copper and rubber, coffee and tea, spices, iron and steel and their articles, footwear, fertilizers, metals, silk, optical, medical and surgical equipment.

India’s investments in Vietnam are estimated at around US$ 1.9 billion including investments routed through third countries. According to Vietnam’s Foreign Investment Agency, as of December 2021, India has 342 projects with total invested capital of over US$ 1 billion in Vietnam. Major sectors of Indian investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components.

As of 2021, Vietnam has six investment projects in India with total estimated investment of US$ 28.55 million, primarily in the areas of pharmaceuticals, information technology, chemicals and building materials.

India has a long-standing development partnership with Vietnam that has made positive contributions towards capacity building, sustainable development goals and socioeconomic development. Vietnam is also a partner county within the ASEAN framework and Mekong Ganga framework.