A booth showcasing Vietnamese fruits in India (Source: congthuong.vn) Hanoi (VNS/VNA) - Vietnamese businesses could increase exports to India by633 million USD annually, the Standard Chartered Trade Opportunity Report hasrevealed.
Thestudy also found that Indian exporters could boost trade with Vietnam by anestimated 475 million USD, bringing the bilateral trade opportunity to 1.1billion USD.
TheASEAN markets in the study (Indonesia, Malaysia, Singapore, Thailand and Vietnam)have a combined opportunity of 10.7 billion USD to increase exports to India.
Theresearch tracks high potential exports, defined as goods or services wherebusinesses have added value with the borders of their home market. As marketslook to recover from the impact of COVID-19, the study champions global tradeas a key lever of prosperity, highlighting the sectors with the greatestopportunities for growth.
Vietnam’swholesale and retail trade services sector has the most to gain, with an 87million USD opportunity.
Indiais now one of Vietnam’s top 10 trading partners, and Vietnam ranks India’sfourth-largest ASEAN trading partner. With the shifts in supply chains postCOVID-19, the India-Vietnam trade route could become increasingly important forinternational businesses.
OtherVietnamese sectors with significant opportunities in India are transportationand storage services; cotton (including sewing thread, yarn and fabric); officeadmin and other business support services and knitted clothing.
NiruktSapru, Chief Executive Officer, Vietnam and ASEAN & South Asia ClusterMarkets, Standard Chartered, said Vietnamese and Indian efforts to grow tradebetween the two markets have clearly been working, with bilateral trade growingat the steepest rate ever recorded.
"AsVietnam plays an increasingly important role in global supply chains, itsrelationship with India is likely to strengthen further – especially with Indiainvesting close to 2 billion USD in over 200 projects in Vietnam. As this studyshows, India presents many opportunities for Vietnamese companies seeking newand fruitful avenues for growth,” he said.
Thestudy estimates that India could increase high-potential exports to Vietnam by 475million USD annually, or 12 percent.
TheStandard Chartered Trade Opportunity Report identifies opportunities at asectoral level, across both goods and services, between India and 10 of its keytrading partners. The study contrasts actual export values with potentialexport values – calculated by an economic model – to uncover medium-termopportunities, looking to a post-COVID-19 world as economies begin to reopen.
Overall,the study reveals opportunities totalling an estimated 38 billion USD annually:a 21 billion USD opportunity for the 10 markets to increase exports to India,and a 17 billion USD opportunity for India to increase exports in the otherdirection./.
VNA
