Vietnam-India trade hits a record high of 15 billion USD in 2022. (Photo: VNA) Despite global headwinds such as geopolitical conflicts and supply chaindisruptions, Vietnam’s exports to India reached 8.5 billion USD for the first time in2023, up nearly 10% from the previous year, while the world’s total trade fellsome 10%.
However, Thuong described India’s trade barriers and trade defence instrumentsas a challenge for the two-way trade, elaborating that India has used various tools to reduce imports which it believes couldimpact domestic production.
More than 2,000 new standards for imports were issued, making it hard forVietnamese exporters to apply for new or extend the quality standardcertificates, he added.
According to Thuong, the similar nature of the two economies also poseschallenges to their trade. He took rice as a typical example when India is theworld’s leading rice exporter while Vietnam has maintained its position in Top3.
Against this backdrop, he suggested competent authorities of both sides need toenhance exchanges to create mutual confidence and find ways to removebottlenecks.
Business communities and associations must organise trade promotion programmesto seek business opportunities and expand markets, he said, adding businessesshould adapt to India’s new rules so as to better penetrate into this market.
Besides, Thuong pointed out several bright spots for the two-way trade as theIndian Government has encouraged production of some specific products,including electric vehicles (EV).
Most recently, Vietnamese EV maker VinFast broke ground for its integrated EVfacility in India’s Tamil Nadu state, which is expected to promote theshipments of other goods and materials from Vietnam.
In the meantime, air travel between the two countries has been made easier withmore direct flights to be launched, and this is an important factor to boost bilateraltrade, he added./.
VNA
