Image Credits - Agenzia nova
Vietnam’s Prime Minister has set an ambitious target to increase bilateral trade with India to $20 billion by 2025. The announcement was made during a recent economic forum aimed at strengthening the strategic partnership between the two countries and exploring new avenues for collaboration in various sectors.
Currently, India and Vietnam enjoy robust trade relations, with bilateral trade reaching approximately $12 billion in the last fiscal year. The new target represents a significant increase and underscores both nations’ commitment to deepening economic ties. The Vietnamese Prime Minister highlighted the complementary nature of the two economies, noting that there is substantial potential for growth in trade, investment, and technological collaboration.
Key sectors identified for enhancing trade include textiles, pharmaceuticals, agriculture, and information technology. Both countries have a strong manufacturing base, and there is a growing interest in exploring joint ventures and investments. Vietnam’s burgeoning tech industry and India’s expertise in IT services and software development offer promising opportunities for synergy.
The push towards increasing trade also aligns with Vietnam’s broader economic strategy of diversifying its trade partners and reducing reliance on a few markets. For India, strengthening ties with Vietnam is part of its Act East policy, which aims to enhance economic and strategic relations with Southeast Asian countries.
To achieve the $20 billion target, both governments are working on several initiatives, including the establishment of a more favourable business environment, the reduction of trade barriers, and the enhancement of connectivity between the two countries. Discussions are also underway to explore the potential for a bilateral free trade agreement, which could further facilitate trade and investment flows.
In addition to economic cooperation, the two countries are also looking to enhance collaboration in defence and security, given their shared interest in maintaining regional stability. This includes joint training exercises, technology transfers, and cooperation in maritime security, reflecting the strategic dimension of their partnership.
The recent visit of Vietnamese officials to India has laid the groundwork for these expanded ties, with several memorandums of understanding (MoUs) signed in areas such as education, culture, and tourism. Both sides emphasized the importance of people-to-people exchanges and cultural diplomacy in strengthening bilateral relations.
As Vietnam and India work towards their trade target, there is a strong focus on leveraging digital technologies and innovation to boost competitiveness. Both countries are investing in digital infrastructure and promoting e-commerce as a means to facilitate cross-border trade, particularly for small and medium-sized enterprises (SMEs).