Vietnam, India to boost cooperation in potential fields

Vietnam and India will boost cooperation in potential sectors like garment and textile, machinery, agriculture, and health and pharmaceuticals, according to Bui Trung Thuong, head of Vietnam’s trade mission in India.

In the garment and textile sector, India has been an important provider of materials for Vietnam’s garment and textile industry, especially after the ASEAN-India Trade in Goods Agreement (AITIG) took effect in 2010, with India’s export in the field to Vietnam reaching USD 402 million in 2015, Thuong said.

Vietnam could become one of India’s markets for automobiles, machinery, spare parts and equipment, having greeted representatives from Tata Motors, Mahindra, Eicher and Escort companies who sought to discuss partnerships.

Bui Trung Thuong (left), head of Vietnam’s trade mission in India, talking with the press on trade cooperation between Vietnam and India

Regarding agriculture, Vietnam and India also signed a Memorandum of Understanding (MoU) on cooperation in veterinary and an agreement on building Tra fish farms. The two sides also exchanged information on plant quarantine and sanitary standards to boost export of products of animal origins.

The two countries will continue cooperation in agriculture, especially in biotechnology, gardening, post-harvest technology and agricultural mechanization, the trade representative noted.

India has strengths in healthcare and pharmaceuticals and it sold medicines and pharmaceuticals worth USD 2.3 billion to Vietnam in 2015. The two countries are working together in the application of information technology in control and prevention of new diseases and strengthening population work and family planning.

The strong development in trade recorded in recent years has yet reflected the two countries’ potential and still fell short of expectation, Thuong said.

He expressed his hope that the two sides will solve some remaining problems such as removing tariff barriers, helping enterprises invest in the respective country and providing assistance in solving problems in the implementation of projects.

According to the General Department of Vietnam Customs, the trade value between India and Vietnam increased from USD 1.01 billion in 2006 to USD 5.56 billion in 2015, in which Vietnam’s export to India rose 18 times, from USD 138 million in 2006 to USD 2.47 billion in 2015.