Indian businesses seek to export foods processed in Vietnam back to home country

At the 2022 Virtual trade exchange conference to promote trade and business cooperation between Vietnam and India, Mr. Le Hoang Tai, Deputy Director of The Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade said that in the agriculture field, Vietnam can boost exportation of dragon fruit, and spice such as cinnamon, anise, pepper, cardamom ... to India.

In particular, some Indian firms desire to engage in the manufacturing of agricultural goods which generate added value in Vietnam to export back to the Indian market due to rising demands for processed foods in the latter. Thereby, the two nations have a big untapped space for investment and trade cooperation of agricultural products as well as supporting each other in processing technologies.

Over the previous period, bilateral commercial cooperation between Vietnam and India has risen fast from USD 200 million in 2000 to more than USD 13 billion USD in 2021. Of which, only 5 years after being a global strategic partner. In 2016, the commercial volume of the two nations increased and it is expected to hit USD 15 billion in 2022.

In 2021, for the first time, bilateral trade between Vietnam and India crossed the milestone of USD 13 billion (13.2 billion USD), up 36.5 percent compared to USD 9.6 billion USD in 2020, of which exports of Vietnam to India reached USD 6.25 billion (up 20 percent compared to 2020). (up 20 percent compared to 2020).

Some items shipped from Vietnam to India with very substantial growth rates in the full year of 2021 (relative to 2020) include plastic raw materials (up 231 percent ), chemicals (up 162 percent ), and rubber (up 138 percent ), coal (up 128 percent ). Mobile phones and components continued to have the greatest export turnover, reaching more than USD 1.28 billion - accounting for nearly 21 percent of the overall export value of goods from Vietnam to India. Export of computers, electronic equipment, and components totaled USD 828 million USD, accounting for 13 percent.