Vietnam has huge untapped potential for Indian exporters: FIEO

A delegation from Vietnam is in India to promote investment in several sectors including IT, textiles and food processing The Dollar Business Bureau | @TheDollarBiz Vietnam is India’s 29th largest trade partner (ahead of Bangladesh), and is a growing market for India with bilateral trade between the two countries growing to $8.03 billion in FY2013-14, up sharply from $2.36 billion in FY2009-10. Last fiscal year, India’s exports to Vietnam grew around 37.2% y-o-y to $5.44 billion. However, there is still a huge potential waiting for Indian exporters, says the Federation of Indian Exporters Organisation (FIEO).
India-Vietnam-TheDollarBusiness (In $ thousand) Source - International Trade Centre
India imports mainly electronic equipment and spices from Vietnam, while India’s exports to Vietnam comprise mainly agriculture and food products; machineries; plastic; and pharma. FIEO says that opportunities exist for Indian exporters in other markets as well. Currently, a 12-member delegation from Vinh Phuc Province of Vietnam is in India to promote investment in sectors like Information Technology, automobiles, spares & parts, food processing, training and education cooperation, infrastructure development, textiles etc. Vietnam’s imports from India have grown around 32% p.a. during 2009-2013, compared to 20% growth in overall imports by Vietnam in the same period, according to the International Trade Centre (ITC). Vietnam is considered a pillar of India’s Look East policy, and last month, India’s External Affairs Minister Sushma Swaraj urged the two countries to boost bilateral trade and help meet the target of $100 billion trade between India and ASEAN by 2015. Meanwhile, FIEO has welcomed the recent pacts signed between India and Japan. M. Rafeeque Ahmed, President, FIEO, said that Japan’s commitment to invest 3.5 trillion yen (around $30 billion) in India over the next five years would boost infrastructure and transform several regions in India into industrial hubs.  

This article was published on September 4, 2014

The Dollar Business Bureau - Sep 04, 2014 08:51 IST