India And Vietnam Look To Boost In Agricultural Trade

The Vietnam Trade Office in India, in collaboration with the National Investment Promotion and Facilitation Agency of India (Invest India), and the Federation of Indian Export Organisations (FIEO) held a teleconference on February 22 in which they discussed boosting trade in agriculture and processed food.

This is in line with increasing trade between the two nations more broadly.

With a population of over 1.4 billion people, India is a promising market for Vietnam’s farm produce and processed food. India’s farm produce and processed food also sell well in Vietnam – foods like seafood, chilli, spices, and fruits and vegetables – are all popular with Vietnamese consumers.

Moreover, the two countries have a comprehensive strategic partnership and have complimentary economic interests.

India is Vietnam’s 8th most significant trading partner, while Vietnam is India’s 15th largest trading partner and the 4th biggest in Southeast Asia. This trade has developed in line with a number of trade agreements that have seen both countries benefit immensely.

Trade relations between India and Vietnam
India and Vietnam have signed several trade agreements over the years to strengthen their economic ties and facilitate bilateral trade.

The biggest agreement is the ASEAN-India Free Trade Area. This is between India and the ASEAN countries, including Vietnam.

There is also the India-ASEAN Services and Investment Agreement. This is a comprehensive agreement that covers trade in services and investment between India and ASEAN countries.

The India-Vietnam Comprehensive Economic Cooperation Agreement also plays an important part in boosting trade between the two countries. It covers a range of areas, including trade in goods, trade in services, investment, and intellectual property rights.

Indian investment in Vietnam
Vietnam occupies a central place in India’s Act East Policy as well as in its Indo-Pacific strategy. As a result, India has made a number of contributions to the capacity building and socio-economic development of Vietnam.

Under the Mekong-Ganga Cooperation (MGC) framework, India has been implementing Rapid Impact Projects (RIPs), each worth around US$50,000, in different provinces of Vietnam to develop community infrastructure.

Furthermore, India is ranked 23 out of 129 countries and territories investing in Vietnam. Since the beginning of 2023, India started five new projects in Vietnam with a total registered capital of US$3.7 million. This brings the all-time total number of Indian FDI projects in Vietnam to 349. These are worth more than a collective US$1 billion.

Source: https://www.vietnam-briefing.com/news/india-vietnam-look-to-boost-trade-in-agriculture.html/