Despite global headwinds such as geopolitical conflicts and supply chain disruptions, Vietnam’s exports to India reached US$8.5 billion for the first time in 2023, up nearly 10 percent from the previous year, while the world’s total trade fell some 10 percent.
However, Thuong described India’s trade barriers and trade defence instruments as a challenge for the two-way trade, elaborating that India has used various tools to reduce imports which it believes could impact domestic production.
More than 2,000 new standards for imports were issued, making it hard for Vietnamese exporters to apply for new or extend the quality standard certificates, he added.
According to Thuong, the similar nature of the two economies also poses challenges to their trade. He took rice as a typical example when India is the world’s leading rice exporter while Vietnam has maintained its position in Top 3.
Against this backdrop, he suggested competent authorities of both sides need to enhance exchanges to create mutual confidence and find ways to remove bottlenecks.
Business communities and associations must organize trade promotion programmes to seek business opportunities and expand markets, he said, adding businesses should adapt to India’s new rules so as to better penetrate into this market.
Besides, Thuong pointed out several bright spots for the two-way trade as the Indian Government has encouraged production of some specific products, including electric vehicles (EV).
Most recently, Vietnamese EV maker VinFast broke ground for its integrated EV facility in India’s Tamil Nadu state, which is expected to promote the shipments of other goods and materials from Vietnam.
In the meantime, air travel between the two countries has been made easier with more direct flights to be launched, and this is an important factor to boost bilateral trade, he added.
