India- Vietnam Business Forum held virtually on October 20
The India Vietnam Business Forum was organised virtually on October 20, 2020. On the occasion, both side reaffirmed the growing bilateral trade and investment ties between India and Vietnam.
- Trade between India and Vietnam has grown steadily. The trade between both the countries stands at 12.34 billion dollars in 2019-20.
- India exports bovine meat, fishery products, corn, steel, pharmaceuticals, cotton, machinery to Vietnam.
- While, India imports mobile phones, electrical machinery and equipment, computers, electronic hardware, natural rubber, chemicals, and coffee from Vietnam.
- However, the 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.
India and Vietnam
The Cultural and economic ties between India and Vietnam dates back to the 2nd century. While in the modern time, India supported Vietnam’s unification and independence from France. India also opposed American involvement in the Vietnam War. The diplomatic relation between both the countries started in 1972 and both the countries maintain the friendly relations since then.
India and Vietnam established their extensive economic ties including oil exploration, agriculture and manufacturing in the year 1972. Both sides agreed to establish a Strategic Partnership in 2007. Fir India, Vietnam is proving to be an important state in for its Act East policy. India comes among the top ten trading partners of Vietnam. Both the sides have identified some of the potential areas that include garments, textiles, leather, footwear, pharmaceuticals, agro-commodities, and engineering to boost the economic ties.
Vietnam finds it difficult to maintain the balance between its relation with China and India simultaneously. China gets alarmed over the Vietnam’s closeness with India. Further, Vietnam does not want itself to be seen as part of QUAD. India’s trade with Vietnam is just $5 billion while Vietnam’s trade with China is $65 billion as of 2015. This is another challenge of the relation.
There is a huge scope for both the countries in the various sectors. Both sides work for their potential. In this regard, India took a step in 2016. In 2016, Prime Minister of India 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 (Security and Growth all in the region) doctrine of India. Further, both the countries can benefit each other in the field of Blue Economy and ocean security.