Trade relations between Vietnam and India
India and Vietnam, with historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations. India initially maintained Consulate-level relations with the then North and South Vietnam and established full diplomatic relations with unified Vietnam on 7 January 1972.
Relations between the two countries were elevated to the level of ‘Strategic Partnership’ during the visit of Prime Minister Nguyen Tan Dung to India in July 2007. In Sep 2016, during Prime Minister Narenda Modi’s visit to Vietnam, the relations were further elevated to a “Comprehensive Strategic Partnership”
The two countries formed various institutional mechanisms for bilateral exchanges
There are many bilateral mechanisms at various levels between India and Vietnam, in which:
Agreement on Trade and Economic Cooperation between India and Vietnam signed on 26 Feb 1978 (and re-new on 08 March 1997), the two countries agree on Most Favoured Nation (MFN) each other.
1982, the two countries formed Việt Nam-India Joint Committee on Economic, Commercial, Scientific, and Technological Co-operation. This is important mechanisms for the development of bilateral cooperation, including building action plan every three years.
ASEAN and the Republic of India went into the Framework Agreement on Comprehensive Economic Cooperation on October 8th, 2003. The Parties, on the basis of the Framework Agreement, signed an Agreement on Free Trade in Goods (effective on January 1st, 2010 – effective in Vietnam from 01 June 2010), an Agreement on Free Trade in Services (effective on July 1st, 2015) and an Agreement on Investment (effective on July 1st, 2015) with the aim of establishing an ASEAN – India Free Trade Area.
Vietnam – India Trade Relations through figures
Import – export turnover between the two countries increase rather fast, from 72 million USD in year 1995 to 1 billion USD in 2006 and up to 2,7 billion USD in 2010.
According to the Vietnam Customs, in 2018 import – export turnover between Vietnam and India reach 10.7 billion USD, nearly double that of 2016.
Currently, the two Governments set target to increase bilateral trade turnover to 15 billion USD in 2020.
IMPORT – EXPORT TURNOVER VIETNAM – INDIA
Unit: Million USD
| Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
|
Export |
992 | 1,554 | 1,778 | 2,353 | 2,460 | 2,473 | 2,688 | 3,755 | 6,540 |
|
Import |
1,746 | 2,346 | 2,159 | 2,882 | 3,132 | 2,656 | 2,710 | 3,877 |
4,150 |
| Total trade | 2,738 | 3,900 | 3,937 | 5,235 | 5,592 | 5,129 | 5,398 | 7,632 |
10,690 |
| Trade balance | -754 | -792 | -381 | -529 | -672 | -183 | -22 | -122 |
2390 |
It is noticed that in the past, Vietnam mainly suffer trade deficit with India, however, in 2018, there is big surplus of more than 2.3 billion USD. The main reason is Vietnam enterprise expand export market and due to ASEAN – INDIA FTA, customs duty from Vietnam to India reduce to 0% for many commodities.
Commodity Vietnam export to India in 2018
|
Commodity |
Year 2018 | +/- compared with 2017 (%)* | ||
| Volumn (Ton) | Value (USD) | Volumn | Value (USD) | |
|
Total |
6.542.350.652 | 74,20 | ||
| Machinery, Tools, Spare parts, … | 1.699.169.515 |
426,86 |
||
|
Computer, electronic products, accessories |
800.835.624 | 63,04 | ||
|
Smartphones and accessories |
814.309.611 | 49,16 | ||
| Common metal and products thereof | 577.960.154 |
23,49 |
||
| Chemical | 377.436.958 |
49,55 |
||
|
Rubber |
102.921 | 145.392.197 | 85,53 | 60,49 |
|
Fibers and yarns of all kinds |
33.268 | 131.115.837 | -0,74 | 7,71 |
| Steel products | 187.874.846 |
170,19 |
||
| Steels | 212.157 | 174.105.501 | 32,50 |
36,95 |
|
Means of transport and spare parts |
176.350.549 | 32,57 | ||
|
Shoes |
103.678.481 | 52,68 | ||
| Cashew | 4.772 | 34.870.903 | -14,11 |
-24,19 |
| Seafood | 28.047.179 |
33,22 |
||
|
Coffee |
58.019 | 95.691.744 | 35,67 | 12,05 |
|
Tea |
868 | 905.674 | -49,94 |
-56,62 |
| Pepper | 20.3 | 62.629.619 | 24,83 |
-20,57 |
|
Confectionery and cereal products |
842.283 | 52,58 | ||
|
Animal feed and raw materials |
64.269.058 | 31,59 | ||
| Coal | 100.442 | 15.099.404 | -40,76 |
-29,73 |
| Chemical products | 66.151.865 |
41,21 |
||
|
Plastic materials |
25.842 | 31.717.272 | 1,86 |
9,42 |
|
Plastic products |
48.191.800 |
135,91 |
||
|
Products from rubber |
10.366.079 |
75,99 |
||
|
Rattan, bamboo, rush and carpet products |
5.635.968 |
1.579,43 |
||
|
Wood and wood products |
46.488.927 |
-22,80 |
||
|
Textiles |
66.061.782 |
16,35 |
||
| Textile, garment, leather and shoes materials | 72.638.445 |
18,47 |
||
Source: Vinanet
Commodity Vietnam import from India in first 8 months 2019
| Commodity | 8 month 2019 | +/- Compared with same period 2018 (%)* | ||
| Volumn (Ton) | Value (USD) | Volumn | Value (USD) | |
| Total | 2.815.092.879 | -0,24 | ||
| Seafood | 135.374.842 | -45,86 | ||
| Fruits, Vegetables | 21.567.288 | 10,02 | ||
| Wheat | 1.135 | 325.338 | 2216,33 | 1350,39 |
| Corn | 1.639 | 1.366.477 | -98,35 | -94,32 |
| Animal and vegetable fats and oils | 2.559.950 | -51,58 | ||
| Animal feed and raw materials | 125.625.578 | -0,86 | ||
| Tobacco raw materials | 10.089.569 | 29,40 | ||
| Ores and other minerals | 138.634 | 16.654.525 | -62,93 | -62,26 |
| Other products from petroleum | 5.505.382 | -23,23 | ||
| Chemical | 124.862.558 | 23,83 | ||
| Chemical products | 74.459.736 | 5,59 | ||
| Pharmaceutical raw materials | 47.572.804 | 1,77 | ||
| Medicine | 163.140.968 | -5,66 | ||
| Fertilizers | 1.818 | 3.272.822 | 26,25 | 11,33 |
| Pesticides and raw materials | 48.557.902 | -9,20 | ||
| Plastic materials | 80.543 | 96.728.403 | -7,28 | -17,10 |
| Plastic products | 12.370.103 | 18,75 | ||
| Rubber products | 6.137.020 | 4,10 | ||
| Paper | 32.081 | 30.875.433 | 21,75 | 1,05 |
| Cotton | 84.697 | 145.045.554 | -57,40 | -57,31 |
| Fibers and yarns | 28.395 | 66.951.396 | -24,53 | -29,53 |
| Fabrics | 45.508.798 | 1,54 | ||
| Textile, garment, leather and shoes materials | 66.731.398 | -18,58 | ||
| Precious stones, precious metals and products | 88.530.205 | -9,73 | ||
| Steels | 957.348 | 515.775.446 | 125,91 | 89,40 |
| Steel product | 21.567.231 | 15,05 | ||
| Other Common metals | 27.076 | 58.069.783 | -8,49 | -33,38 |
| Computer, electronic products, accessories | 53.941.194 | 172,97 | ||
| Machinery, Tools, Spare parts, … | 311.336.206 | -1,43 | ||
| Car components, spare parts | 118.522.118 | 17,30 | ||
| Other commodities | 355.520.854 | |||
Source: Vinanet
Currently, Vietnam’s special preferential import tariff in period 2018 – 2022 under Asean – India FTA is stipulated in Decree No. 159/2017/ND-CP dated 27 Dec 2017 by Vietnam’s Prime Mister
For details of the Decree No. 159/2017/ND-CP, click Here
For more detailed advice on import procedures from India to Vietnam and export from Vietnam to India and shipping estimates, contact us:
Hp Global Company Limited
Freight forwarder and Customs Brokerage
Room 2308, CT2 Van Khe, La Khe, Ha Dong, Hanoi
Website: hpgloballtd.com/hptoancau.com
Email: info@hpgloballtd.com
Phone: 024 73008608 / Hotline: ++84 8 8611 5726
