Illustrative image (Photo: VietnamPlus)
Hanoi (VNA) – Vietnamese businesses could increase exports to India by 633 million USD annually, according to the Standard Chartered Trade Opportunity Report.
The study also found that Indian exporters could boost trade with Vietnam by an estimated 475 million USD, bringing the bilateral trade opportunity to 1.1 billion USD.
The ASEAN markets in the study (Indonesia, Malaysia, Singapore, Thailand and Vietnam) have a combined opportunity of 10.7 billion USD to optimise exports to India.
The research tracks high potential exports, defined as goods or services where businesses have added value with the borders of their home market. As markets look to recover from the impact of COVID-19, the study champions global trade as a key lever of prosperity, highlighting the sectors with the greatest opportunities for growth.
Vietnam’s wholesale and retail trade services sector has the most to gain, with an 87 million USD opportunity.
India is now one of Vietnam’s top 10 trading partners, and Vietnam ranks India’s fourth-largest ASEAN trading partner. With the shifts in supply chains post COVID-19, the India-Vietnam trade route could become increasingly important for international businesses.
Two-way trade expanded from only 200 million USD in 2000 to 12.34 billion USD in the 2019-2020 fiscal year.
Other Vietnamese sectors with significant opportunities in India are transportation and storage services; cotton (including sewing thread, yarn and fabric); office admin and other business support services and knitted clothing.
Nirukt Sapru, Chief Executive Officer, Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered, said 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 Vietnam plays an increasingly important role in global supply chains, its relationship with India is likely to strengthen further – especially with India investing close to 2 billion USD in over 200 projects in Vietnam. As this study shows, India presents many opportunities for Vietnamese companies seeking new and fruitful avenues for growth,” he said.
The study estimates that India could increase high-potential exports to Vietnam by 475 million USD annually, or 12 percent.
The Standard Chartered Trade Opportunity Report identifies opportunities at a sectoral level, across both goods and services, between India and 10 of its key trading partners. The study contrasts actual export values with potential export values – calculated by an economic model – to uncover medium-term opportunities, 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 other direction.
Speaking at a virtual workshop held by the Embassy of Vietnam in India and the Indian Importers Chambers of Commerce and Industry (IICCI) on October 7, Shubhra, Trade Adviser from the Indian Ministry of Agriculture and Farmers’ Welfare, said that Vietnam and India hold great potential in boosting trade of fruits.
Shubhra said India has been emerged as one of the world’s leading traders of fruits and agricultural products over recent years. India can supply Vietnam with a number of its key farm produce, such as pomegranate, grape, wheat and cotton, while Vietnam produces high-quality dragon fruit, coffee, cocoa and cashew nut, she said.
She went on to say both countries have major advantages in agriculture so there is still great room for them to further expand cooperation in this area.
Vietnam and India have many things to learn from and supplement each other to foster a win-win partnership, she noted, adding that India wants to become Vietnam’s leading trade partner.
Vietnamese Ambassador to India Pham Sanh Chau, for his part, introduced attendees to Vietnam’s signature agricultural products – coffee, cocoa, cashew nut and coconut. He expected India to remove tariff and non-tariff barriers and streamline public administrative procedures to provide broader market access for Vietnamese exporters.
He also urged India to open market for a number of Vietnamese fruits, including longan, pomelo, durian and rambutan among others./.
