Vietnam’s trade with India hits record in 2022
Two-way trade between Vietnam and India saw a yearly increase of 13.6% to US$15.05 billion in 2022, statistics from the General Department of Customs showed.
During the year, Vietnam’s exports to India topped US$7.96 billion, up 26.8% year-on-year. Among its export items, mobile phones and accessories posted the highest turnover with US$1.52 billion, up 18.4%, making up nearly 20% of the total export value. Computers, electronics and parts came next with US$1.03 billion, up 25%, or 13%, while machinery and equipment ranked third with US$804 million or over 10%.
Other staples with the highest value increase were coffee with 165%; iron and steel (97%) and footwear (96%).
Some items, however, posted large decreases in export value, such as animal feed and raw materials with US$23.04 million, down 76.5%, and coal with US$7.68 million, down 46%.
As per the data, Vietnam imported $7.09 billion worth of goods from India last year, a yearly hike of 2%. Its major import commodities from the market were iron and steel with nearly US$775 million, down 44.6%; machinery and equipment (US$549.3 million, up 28%) and ordinary metals (US$515 million, up 26%).
According to the Vietnamese Trade Counsellor in India, Bui Trung Thuong, Vietnam and India could supplement each other in economic production. India is an important supplier of materials, while Vietnam has a high demand for materials in service of production and export.
India is Vietnam’s leading provider of aquatic, garment and textile, leather and pharmaceutical materials. The 1.4-billion-strong Indian market has diverse demands with various market segments - a good condition for Vietnamese exporters.
Besides trade, bilateral cooperation in tourism and investment also grew with the resumption and launch of direct air routes. Adani Group, for example, has committed to pouring US$10 billion in Vietnam.
However, Thuong said, the presence of Vietnamese businesses in the market remained modest. In contrast, India's administrative and legal system had been complicated by the toughest trade defence measures, which had caused great difficulties for Vietnam in approaching the market.
As part of the efforts to support Vietnamese firms to penetrate the market more deeply, the Vietnam Trade Office in India organised online trade promotion activities, especially during the COVID-19 pandemic, the official said.
His office had also connected many Vietnamese firms with their Indian peers and helped deal with trade conflicts while providing domestic businesses with trade defence cases initiated by the Indian side, he said.