Trade between India and Vietnam can touch $20 billion, says Vietnam’s PM Pham Minh Chinh

New Delhi: Vietnamese Prime Minister Pham Minh Chinh on Wednesday sought closer cooperation between both countries in semiconductor technology innovation among other areas.

He said bilateral trade could zoom to $20 billion from the current levels of about $15 billion, in the coming years.  The other areas of cooperation he mentioned were digital transformation, green hydrogen, pharmaceuticals, renewables, and biotechnology.

Pham Minh Chinh, who is on a three-day visit to India, said Vietnam is a key partner in India’s Act East policy and acknowledging the role played by both governments in facilitating business between the regions.

“(Our) Countries have always met each other with mutual support for comprehensive strategic cooperation across the supply chain, strategic resources, climate action, environmental technology and human resources, defence, and security,” Pham Minh Chinh said while addressing the Vietnam-India Business Forum organised by industry body FICCI.

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"We need to advise each other...... We need to make sure that all benefits are shared," he added.

The bilateral trade

The bilateral trade between India and Vietnam stood at about $14.82 billion, in value terms, during 2023-24.

During this period, India's exports to Vietnam were at $5.47 billion, while imports stood at $9.35 billion.

India's top exports to Vietnam include buffalo meat, marine products, iron and steel, rice, aluminium products, auto components, cereals, cotton yarn and pharmaceutical products, according to commerce ministry data.

Top imports from Vietnam include electronic components, telecom instruments, consumer electronics, iron & steel, computer hardware, copper products, electronic instruments, spices and rubber.

Pham Minh Chinh, who will receive a ceremonial welcome on 1 August at Rashtrapati Bhavan, is expected to discuss bilateral with his Indian counterpart, Prime Minister Narendra Modi.

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"We (Vietnam and India) continue to foster stronger cooperation, focusing on strategic infrastructure, including transportation, energy and climate infrastructure. We are also looking at many (other) businesses and to continue to work closely together," Pham Minh Chinh said at the industry event.

Some of the sectors Vietnam is looking for investments from India include transportation, health, and education.

"That is why we would like to establish a pharmaceutical (sector) to protect the health and the life of (our) people, especially for the oncological cardiovascular and diabetes treatment," he added.

Pham Minh Chinh said both countries can work together to bring out better solutions to global issues and forge a stronger strategic partnership.

"The investments between India and Vietnam are growing with bilateral trade expanding over the years," he added.

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Despite the rapid growth in trade between India and Vietnam, investment levels have remained relatively low.

Indian investments in Vietnam are currently estimated at $2 billion including investments routed through third countries, according to the Embassy of India (Hanoi).

As such, India has 392 valid projects with a total invested capital of $ 1,119 million, ranking 23 among 144 countries and territories investing in Vietnam.

Vietnam’s presence in India is even more limited.

As of 2022, Vietnam has six investment projects in India with an estimated investment of $ 28.55 million, primarily in pharmaceuticals, information technology, chemicals and building materials, according to the Embassy of India in Hanoi.