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Footwear is one of the fields where Vietnam and India still share benefit for cooperation. Photo: ST

According to the Asia-Africa Market Department, trade turnover between Vietnam and India accounts for about 80% of Vietnam's total turnover with other South Asian countries.

Meanwhile, Vietnam is currently the 23rd largest trading partner in the world and the 4th largest in the ASEAN region of India. In contrast, India is currently the 8th largest trading partner of Vietnam. In 2022, bilateral trade turnover between Vietnam and India reached 15 billion USD, the highest level ever. Vietnam and India still have many potentials and advantages for cooperation in fields such as agriculture, fisheries, industrial production, textiles, and footwear.

In the first four months of 2023, Vietnam's total import-export turnover with India reached 4.9 billion, down 11% over the same period in 2022. In which, Vietnam's exports to India reached 2.7 billion USD, down 5% over the same period in 2022. However, Vietnam's potential export items to India still achieved an increase in turnover over the same period, specifically: wood and wood products (21 million USD, up 171%); footwear of all kinds (73 million USD, up 20%); textiles and garments (44.6 million USD, up 2.7%); rubber products (5.2 million USD, up 21%); coffee (27 million USD, up 73%); iron and steel of all kinds (142 million USD, up 590%).

According to the Vietnam Trade Office in India, recently, India issued a new foreign trade policy with the goal of exporting 1 trillion USD in goods and 1 trillion USD in services by 2030. India is both Vietnam's 8th largest import and export partner, the potential market has much room to exploit, as well as being a competitor of Vietnam for a number of products in the global export market such as textiles, garments, seafood, footwear, agricultural products.

Therefore, India's foreign trade policy affects not only India's import and export but also Vietnam's import and export.

According to the Asia-Africa Market Department, the issuance of the foreign trade policy of India in 2023, which focuses on facilitating most for domestic production to promote exports, is a good opportunity for businesses. Therefore, Vietnam is promoting exports of many products to India.

Notably, in this 2023 foreign trade policy, India announced an export target of USD 2 trillion by 2030, of which, the goal of goods exports is USD 1 trillion and services export target of USD 1 trillion USD by 2030. Under this target, it is expected that the annual export growth of India will reach 10%. In fact, by the end of the fiscal year 2022-2023 (April 2022 - March 2023), India's total import and export turnover of goods has reached 1.161 billion USD. In which, exports reached USD 447 billion, up 6% compared to the fiscal year 2021-2022; imports reached 714 billion USD, up 16.5% compared to the fiscal year 2021-2022.

According to the Asia-Africa Markets Department, India's 2023 foreign trade policy will also be tied to India's implementation of business simplification through online document management, licensing and approval, cutting administrative procedures and cutting costs for implementing administrative procedures for businesses.

In the context of India's 2023 foreign trade policy with many notable points, and at the same time promoting the creation of a favorable business environment to promote domestic production, India is expected to maintain imports of raw materials, raw materials for production activities for domestic consumption and export. The products and groups of products are forecast to maintain export demands such as agricultural and aquatic products, spices, agricultural products, agricultural machinery and equipment.

The Asia-Africa Market Department believes that this will be a good opportunity for Vietnamese businesses to promote exports to the Indian market, especially for Vietnam's strong commodities such as agricultural products (coffee), pepper, cashew nuts, cinnamon, anise, ginger, turmeric), aquatic products, fertilizers, chemicals, agricultural machinery, and consumer products.

Diversifying products and markets is one of the key solutions implemented by enterprises in recent years, especially amid the current hard period.

The Asia-Africa Market Department said that it is necessary to continue to promote exports to a number of markets such as China, South Asia, Africa, etc. For the South Asian market, the Ministry of Industry and Trade plans to focus on the Indian market with large purchasing power and market demand (1.4 billion people). At the same time, Bangladesh and Pakistan markets will also be focused as a springboard to promote exports to the Indian market.