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How to Export to Vietnam: Unlocking India’s Trade Opportunities in a Growing Market

  • Writer: Anshul Saxena
    Anshul Saxena
  • Aug 13
  • 3 min read

A Growing Partnership in the Indo-Pacific Era


In the dynamic landscape of global trade, Indian manufacturers and exporters are increasingly forging strategic partnerships within the Indo-Pacific region. With a focus on enhancing exports, Indian businesses are leveraging their manufacturing capabilities to meet the rising demand for quality products across international markets. This burgeoning trade relationship is characterized by increased collaboration, innovation in supply chains, and a commitment to sustainable practices. As India positions itself as a key player in the global export arena, manufacturers are exploring diverse sectors including textiles, pharmaceuticals, and technology, ensuring a robust export portfolio that caters to the needs of global consumers. The Indo-Pacific era presents unprecedented opportunities for Indian exporters to expand their reach, enhance competitiveness, and contribute to economic growth through trade.


India and Vietnam share a long-standing, cordial relationship rooted in a common struggle for independence from colonial rule. Over the years, this historical bond has evolved into a strong strategic and economic partnership, particularly under India’s Act East Policy and the ASEAN framework. Today, Vietnam plays a pivotal role in India’s engagement with Southeast Asia, while India has become one of Vietnam’s key partners in the Indo-Pacific region.



Flags of India and Vietnam overlap. The image is about trade relations between India and Vietnam


India–Vietnam Bilateral Trade at a Glance

The economic engagement between India and Vietnam has seen remarkable growth in recent years.

  • In 2023–24, bilateral trade reached US$ 14.81 billion.

  • Indian exports to Vietnam stood at US$ 5.47 billion, while imports from Vietnam amounted to US$ 9.34 billion.

  • Vietnam is now India’s 15th largest trading partner globally and 4th largest in Southeast Asia, while India ranks among Vietnam’s top eight trading partners.



Key Indian Exports to Vietnam

India exported 3,630 commodities to Vietnam in FY24, with major categories including:

  • Engineering Goods – US$ 1.31 billion

  • Meat, Dairy & Poultry Products – US$ 798 million

  • Marine Products – US$ 392 million

  • Organic & Inorganic Chemicals – US$ 370 million

From April–November 2024, engineering goods (US$ 952.89 million) and agri-based products continued to dominate India’s exports to Vietnam.



Major Vietnamese Exports to India

India imported 2,202 commodities from Vietnam in FY24, including:

  • Electrical Machinery & Equipment – US$ 4.16 billion

  • Nuclear Reactors, Boilers & Mechanical Appliances – US$ 770 million

  • Iron & Steel – US$ 522 million

  • Copper & Copper Products – US$ 552 million

  • Inorganic Chemicals – US$ 384 million

Electrical and electronic products remain Vietnam’s top export to India, reflecting the country’s manufacturing strength.



Foreign Direct Investment (FDI) and Economic Cooperation

  • Vietnam’s FDI in India (April 2000–September 2024): US$ 12.69 million

  • India’s investments in Vietnam: Around US$ 1.9 billion, covering energy, agro-processing, manufacturing, IT, auto components, and mineral exploration.

  • India currently operates 317 valid projects worth over US$ 1 billion in Vietnam.



Strategic and Defence Collaboration

India and Vietnam are not just economic partners—they share strong defence and strategic cooperation.

  • Defence Policy Dialogues (August 2024) have focused on cybersecurity, military medicine, and training exchanges.

  • India gifted Vietnam the INS Kirpan Missile Corvette in June 2023 to boost its naval capabilities.

  • Defence industrial collaboration includes joint production and logistics support agreements.



Recent Developments Strengthening Ties

  • Business Delegations & Trade Meetings – Both nations are actively working to improve direct shipping routes, enhance air connectivity, and address logistics bottlenecks.

  • Cultural & Youth Exchanges – ICCR cultural troupes, youth delegations, and provincial visits have deepened people-to-people ties.

  • Mekong Ganga Cooperation (MGC) – India funds Quick Impact Projects in Vietnamese provinces, supporting community infrastructure and sustainable development.



The Road Ahead: Opportunities for Growth

With Vietnam looking to diversify its trade and India emerging as a major growth market, the scope for collaboration is immense:

  • Agriculture & Processed Foods – Leveraging Vietnam’s agri-exports and India’s food processing expertise.

  • Manufacturing & Technology – Expanding joint ventures in electronics, machinery, and auto components.

  • Logistics & Supply Chain – Enhancing direct shipping and air freight connections for faster trade flows.


Leaders of India & Vietnam having trade talks.

Conclusion

The India–Vietnam partnership is a shining example of how shared history, strategic vision, and economic opportunity can come together to create a win-win relationship. As both nations deepen cooperation in trade, defence, technology, and cultural exchange, they are well-positioned to play a transformative role in shaping the future of the Indo-Pacific region.

With continued policy alignment, investment, and people-to-people engagement, the India–Vietnam trade relationship is set to reach new heights in the coming decade.


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