According to Standard Chartered Bank’s Trade Opportunity Report, Vietnamese businesses can increase their annual exports to India by $ 633 million. On the other hand, Indian businesses can boost exports to Vietnam by an additional $ 475 million per year. With this potential, the total bilateral trade between Vietnam and India could increase by 1.1 billion USD.
Exports of knitted fabrics to India are likely to grow 36 million USD after the Covid-19 epidemic
The ASEAN markets mentioned in the report include Indonesia, Singapore, Thailand and Vietnam. It is estimated that the export growth potential of these markets to India could reach 10.7 billion USD.
The report points out 5 areas with high export potential from Vietnam to India. In which, the retail and wholesale sectors of Vietnam have the greatest potential for export growth to India, at 87 million USD. Followed by the transportation and logistics services sector at $ 86 million. Cotton fabric (including sewing thread, yarn and fabric) is likely to grow by 78 million USD. Office administrative services and other business support services increased 67 million USD. Knit fabric has a potential growth rate of 36 million USD
India is currently one of 10 important trading partners of Vietnam, and Vietnam is the fourth largest trading partner of India in ASEAN. With the supply chain shift following the COVID-19 epidemic, trade between Vietnam and India may play an increasingly important role for international businesses.
The efforts of Vietnam and India to promote bilateral trade are bearing positive results and the trade between the two countries is recording the strongest growth ever.
In the context that Vietnam plays an increasingly important role in the global supply chain, the relationship between Vietnam and India is likely to be further strengthened, especially when India is investing nearly 200 billion USD. more than 200 projects in Vietnam – shared by Mr. Nirukt Sapru – General Director of Standard Chartered Bank Vietnam and group of 5 ASEAN and South Asian countries.
It is estimated that India can increase the export turnover of high potential products to Vietnam by 475 million USD per year, equivalent to the growth rate of 12%.