Indian exports and imports
Bilateral trade touched US$ 2.48 billion during Jan – Dec 2008, up from US$ 1.54 billion during Jan – Dec 2007. Exports from India to Vietnam were US$ 2.09 billion, registering a growth of 54.35 per cent over the corresponding period in 2007. Exports from Vietnam to India were US$ 389 million, an increase of 116.47% over the corresponding period in 2007.
During the first quarter of 2009, as a result of global economic recession, exports from India to Vietnam were US$406.44 million, a decrease of 43.60% over the corresponding period in 2007. Exports from Vietnam to India increased by 45.53% to reach US$69.55 million.
Million US dollar
(Figures in US$ millions)
Source: General Statistics Office
Major export commodities from India to Vietnam
(Amount in million USD)
| Sl. No. |
Commodities |
Jan – Dec 2006 |
Jan – Dec 2007 |
% Increase |
| 1. |
Feed ingredients |
245.08 |
450.44 |
83.79 |
| 2. |
Pharmaceuticals |
61.17 |
85.80 |
40.26 |
| 3. |
Machinery and Equipment |
48.48 |
91.17 |
88.06 |
| 4. |
Ordinary metals |
71.38 |
75.78 |
6.16 |
| 5. |
Plastic materials |
65.21 |
73.28 |
12.38 |
| 6. |
Steels of all kinds |
44.36 |
60.76 |
36.97 |
| 7. |
Medicinal Ingredients |
30.87 |
40.66 |
31.71 |
| 8. |
Leather and textile materials |
27.81 |
41.20 |
48.15 |
| 9. |
Cotton of all kinds |
37.32 |
39.69 |
6.35 |
| 10. |
Pesticides and materials |
25.68 |
34.80 |
35.51 |
| 11. |
Tobacco accessories |
11.13 |
26.74 |
140.25 |
| 12. |
Chemicals |
15.46 |
27.84 |
80.08 |
| 13. |
Chemical allied products |
28.48 |
22.45 |
-21.17 |
| 14. |
Fibres of all kinds |
9.90 |
14.04 |
41.82 |
| 15. |
Fabrics of all kinds |
8.24 |
10.49 |
27.31 |
| 16. |
Other products |
285.92 |
564.84 |
97.55 |
Exports from Vietnam to India during 2007:
Vietnam’s exports to India during 2007 registered an increase of 21% over the corresponding period in 2006
(Amount in million USD)
| 2006 (Jan - Dec) |
2007 (Jan – Dec) |
% Increase |
| 137.84 |
179.70 |
30.37% |
Major export commodities from Vietnam to India
(Amount in million USD)
| Sl.No. |
Commodities |
Jan – Dec 2006 |
Jan – Dec 2007 |
% Increase |
| 1. |
Coal |
20.25 |
20.73 |
2.37 |
| 2. |
Pepper |
10.98 |
13.61 |
23.95 |
| 3. |
Rubber |
6.91 |
9.2 |
33.14 |
| 4. |
Computer and electronic goods |
6.86 |
10.75 |
56.71 |
| 5. |
Cinnamon |
7.08 |
9.03 |
27.54 |
| 6. |
Garment and textiles |
7.96 |
3.82 |
-52.01 |
| 7. |
Footwear of all kinds |
4.33 |
3.81 |
-12.01 |
| 8. |
Coffee |
7.74 |
2.62 |
-66.15 |
| 9. |
Vegetable |
2.89 |
2.16 |
-25.26 |
| 10. |
Other products |
52.96 |
96.94 |
83.04 |
Investment relations
As of December 2008, India has 30 investment projects in Vietnam with total registered capital of US$185.47 million. Indian companies are investing in oil and gas exploitation, mineral exploitation and processing, sugar manufacturing, agro-chemicals, IT, and agricultural processing. TATA Group of India inked a memorandum with Vietnam Steel General Corporation to research for the building of Ha Tinh Conjugate Steel Company and exploit Thach Khe iron mine with an output capacity of 4.5 million tons per year. It is expected to invest more than USD 4.5 billion in the next few years. With this investment, India has become top 10 investors in Vietnam. From Vietnamese side, a Vietnamese company, FPT, has made an investment of US$150,000 in an Indian technology development and investment project.
Development Assistance of India to Vietnam
Vietnam is one of the largest recipients of Indian aids through Lines of Credit extended by Department of Economic Affairs (DEA), Ministry of Finance of the Government of India. Since 1976, India has extended 14 Lines of Credit totaling Rs.3,610 million to Vietnam. In the 1980s, Vietnam received relatively large amounts of assistance though these programmes were reduced during the 1990s. India announced another credit line of US$27 million to Vietnam an agreement for which was signed in August 2004 between Exim Bank of India and Ministry of Finance of Vietnam. Most recent credit line of US$ 45 million is being implemented for Nam Chien Hydropower projects in Vietnam.
India has announced an aid of Rs. 100 million to Vietnam for setting up of an Advanced Resource Centre in IT in Hanoi. Another grant of Rs. 122.07 million has also been given to Vietnam for assisting human resource development in the field of IT in six educational institutions in Vietnam. Implementation of both these projects is going on.