India and Vietnam benefit from agricultural trade under the Mekong-Ganga Cooperation framework. Key exports include Indian aquaculture products, animal fodder, maize to Vietnam, and Vietnamese bamboo, rattan, yarn, black pepper to India. This mutually beneficial partnership supports market expansion and revenue growth.
India and Vietnam, two countries with a comprehensive strategic partnership and complimentary economic interests, are seeking to boost trade relations in agriculture and processed food. India is a potential market for Vietnam’s farm produce and processed food, while Vietnam’s seafood, chilli, spices, fruits, and vegetables are popular in India. India is Vietnam’s 8th most significant trading partner, while Vietnam is India’s 15th largest trading partner and the 4th largest in Southeast Asia.
Trade Agreements Facilitating Bilateral Trade
Trade agreements, such as the ASEAN-India Free Trade Area, the India-ASEAN Services and Investment Agreement, and the India-Vietnam Comprehensive Economic Cooperation Agreement, have facilitated bilateral trade. Moreover, India has invested in Vietnam under the Mekong-Ganga Cooperation (MGC) framework, implementing Rapid Impact Projects (RIPs) in different provinces to develop community infrastructure. India is ranked 23 out of 129 countries and territories investing in Vietnam, with a total registered capital of US$1 billion for more than 349 FDI projects.
Key Indian Agricultural Exports To Vietnam In 2022
- Aquaculture Products- Vietnam’s population is growing rapidly and with a growing population, there is a high demand for fish and seafood. India is an important exporter as well as producer of fishery and seafood products. Indian fishery products are competitively priced, diverse, and known for their high quality. In 2022, the export value of fishery products was $ 377,949,739.
- Animal Fodder And Feed- Vietnam’s livestock industry, which is rapidly growing, requires a significant amount of animal feed and fodder materials, which India offers in a wide range. In 2022, the export value of animal fodder and feed was $ 377,919,344.
- Maize- Indian maize is cost-effective and high-quality, making it attractive to Vietnamese buyers. In 2022, the export value of maize was $ 287,157,393.
Key Vietnamese Agricultural Exports To India In 2022
- Bamboo And Rattan- Bamboo and rattan products are also popular in India, and Vietnam has the potential to become a significant sourcing partner for India in the technical textile subsector. In 2022, the export value of bamboo and rattan products was $ 39,922,436.
- Yarn- Vietnamese yarn is known for its high quality, with a reputation for durability and strength, and Indian textile manufacturers are willing to pay a premium for this quality. India’s focus on strengthening its technical textile industry makes Vietnamese yarn a valuable commodity. In 2022, the export value of yarn was $ 120,996,731.
- Black Pepper- Vietnamese black pepper makes Vietnam the world’s largest producer and exporter of black pepper. Vietnamese black pepper is known for its high quality and pungent flavour, making it a popular spice in Indian cuisine. In 2022, the export value of pepper was $ 53,352,880.
Boosting India-Vietnam trade in agriculture and processed food can benefit both countries immensely. By leveraging each other’s strengths and opportunities, both countries can expand their markets and increase their revenue, it’s a win-win for both nations.