Bilateral Business Forum of India and Vietnam was organised virtually due to pandemic on 20 Oct 2020. On the occasion, both countries reaffirmed the growing bilateral trade & investment ties between two countries.
Points To Note
- Bilateral Trade between has grown continuously. Bilateral trade of India and Vietnam touch to $12.34 billion in last financial year 2019-20.
- Goods India exports to Vietnam bovine meat,cotton, fishery products, corn, pharmaceuticals, steel, machinery.
- While, India imports from Vietnam are coffee, chemicals, mobile phones, electrical machinery and equipment, computers, electronic hardware, natural rubber.
- However, tcountries bilateral trade turnover is still not comply with the levels of economic development. So, more needs to be done intensify the trade relations in order to achieve its full potential.
Both countries Cultural and economic ties dates back to the 2nd century. While in the modern period, India supported Vietnam’s unification and independence from France. India also opposed American involvement in the Vietnam War (Second Indochina War from 1 Nov 1955 – 30 Apr 1975). Earlier In 1972, diplomatic relation between India and Vietnam started and both the nations maintain the friendly relations since then.
Countries Economic ties
In 1972, Both countries established their extensive economic ties including oil exploration, agriculture and manufacturing. In 2007, India and Vietnam agreed to establish a Strategic Partnership. India-Vietnam is proving to be an important state in for its Act East policy. India comes among the top 10 trading partners of Vietnam. Both countries have identified some of the potential areas that include pharmaceuticals, footwear, garments, textiles, leather, agro-commodities, and engineering to boost the bilateral economic ties.
Challenges for Vietnam
Vietnam finds it difficult to maintain the simultaneously balance with India and People’s Republic of China. China gets alarmed over the Vietnam’s closeness with India. Further, Vietnam does not want itself to be seen as part of QUAD (Quadrilateral Security Dialogue). India-Vietnam bilateral trade is just $5 billion while Vietnam and China bilateral trade is $65 billion as per the 2015. This is another challenge of the bilateral relation.
There is a huge scope for both India and Vietnam in the various sectors. India and Vietnam work for their potential. In this regard, in 2016 India took a step. After that, In 2016 PM Modi visited Vietnam for the first time in 15 years giving out the message that India does not hesitate to expand in China’s periphery. Vietnam is significant for India and strengthening ties would lead further boost the SAGAR doctrine of India. Further, both India and Vietnam can benefit each other in the field of Blue Economy and ocean security.
India Vietnam Business Forum held virtually India Vietnam Business Forum held virtually