Ho Chi Minh City
India and Vietnam have demonstrated a consistent growth pattern in their economic relations, offering substantial potential for increased investments and trade between the two nations, according to Indian Ambassador Sandeep Arya. Both countries are experiencing rapid growth, and the focus has been placed on infrastructure, manufacturing, and connectivity to boost bilateral trade and investments. Trade between the two countries has steadily grown, reaching a total of USD 15 billion, with India exporting approximately USD 7 billion and Vietnam exporting about USD 8 billion. Additionally, foreign direct investments (FDI) have increased eightfold over the past decade, and domestic enterprises have seen a threefold growth in exports during the same period. Ambassador Arya emphasized the immense potential for trade and investments, particularly for the northeastern states of India. He highlighted that civil aviation connectivity is a key factor in expanding trade relations between Vietnam and northeastern India. Guwahati is among the approved list of airports, and specific approval from the Government of India is not required for airlines wishing to operate flights to Guwahati. Moreover, the ambassador noted the strong case for air connectivity between Vietnam and northeastern India, as there are nearby ports in Myanmar, Bangladesh, and Kolkata in India, which can provide direct shipping services. Additionally, the extension of the India Myanmar Thailand (IMT) Highway and multimodal transport through Myanmar creates opportunities for trade promotion and investments. Ambassador Arya also highlighted the potential for investments in the digital connectivity sector and mentioned discussions about cross-border payments using the Unified Payments Interface (UPI) with the State Bank of Vietnam and the Reserve Bank of India. Vietnam’s manufacturing sector, particularly in electronics and garments, plays a significant role in its exports. There are opportunities for collaboration in areas like yarn and cotton, which are important components of Vietnam’s garment sector. The steady growth in economic relations between India and Vietnam reflects the promising future for increased trade and investments.
