Vietnam, India agree to facilitate import and export of each other's goods

The agreement was reached at the fifth India-Vietnam Joint Trade Sub-commission meeting that took place under the chair of Deputy Minister of Industry and Trade Phan Thi Thang and Rajesh Agrawal, additional secretary of the Indian Ministry of Commerce and Industry.

As part of his address, Agrawal applauded Vietnamese socio-economic development achievements, affirming that his nation views the Vietnamese side as a leading important partner in Southeast Asia and always attaches importance on expanding economic and trade ties with the country.

He acknowledged the noticeable development trend occurring in trade between the two nations over recent years, thereby highlighting positive changes made since the fourth meeting of the joint sub-committee held back in 2019 in Hanoi.

For her part, Deputy Minister Thang remarked that there are many challenges ahead in terms of the global and regional context, including economic recession, political conflicts, trade tensions, high inflation, and lower demand.

These issues will undoubtedly have an impact on the global economy, including both Vietnam and India, she said, noting that the meeting will therefore play a crucial role in addressing difficulties facing businesses, thereby ensuring continuity whilst strengthening bilateral co-operation.

She highlighted the significance of the fifth Joint Trade Subcommittee meeting as it was held at a time when both countries celebrated the 50th anniversary of their diplomatic relations in 2022.

This year also saw the import-export turnover between both sides reach US$15 billion as set by the two countries' senior leaders, Deputy Minister Thang said, adding that India has always been identified by the Vietnamese side as an important trading partner, and is currently the country’s number one trading partner in South Asia.

She stressed that the two nations must make greater efforts to foster sustainability-oriented two-way trade; remove trade barriers for imports and exports; promote market access for products of the strength of each side; enhance collaboration in e-commerce; and enhance business, trade, and tourism connectivity. This can be achieved by opening more direct flights and increasing the number of flights between major cities of the two countries.

Agrawal fully agreed with the proposals put forward by the Vietnamese official, stating that his agency will work with relevant Indian agencies in a bid to deal with lingering issues and difficulties in order to facilitate import-export activities of the two sides’ businesses.

India is keen to boost ties with the Vietnamese side in terms of pharmaceuticals, processed food, tourism, and information technology, he said.

The two sides consented to closely collaborate in launching trade promotion programmes and activities, fairs and exhibitions; whilst further expanding trade links in areas with huge potential such as agriculture, aquaculture, textiles, leather and footwear, pharmaceuticals, chemicals, fertilisers, machinery, equipment, and consumer goods.

They concurred to augment investment co-operation in areas of joint interest. Both sides pledged to push relevant agencies to complete the risk assessment process and move towards allowing market access for prioritised types of fruits moving forward.

At the end of the meeting, the two sides approved and signed the Minutes of the meeting, affirming that they will closely co-ordinate in directing functional units of both nations’ industry and trade ministries, as well as working alongside relevant agencies to carry out the results of the meeting.

India is currently the nation’s leading economic partner in South Asia, as well as being the country’s eighth largest trading partner.

Joint trade turnover accounts for roughly 80% of the Vietnamese side’s total turnover with South Asian nations, while the nation is currently the 23rd largest trading partner in the world and the fourth largest in the ASEAN region of India.

Last year’s import and export turnover between the two sides reached US$15 billion, up 13.6% on-year.