Vietnam and India have pushed
bilateral trade to higher levels because of tax reductions applied
to many key exports under the Asean
India Free Trade Agreement.
Vietnamese companies have taken
advantage of the agreement (AIFTA), which came into force in 2010, to increase
exports to India.
According to Ho Chi Minh City’s
Department of Industry and Trade (DoIT), the exports from Ho Chi Minh City into
India hit $135.3 million in 2010 under AIFTA, a 261.6 per cent rise compared to
2009.
In the first nine months of 2012,
Ho Chi Minh City’s exports into India reached $172.8 million, increasing 89.3
per cent compared to 2011’s corresponding time.
Agricultural products, the
biggest export from Ho Chi Minh City to India, have increased in quantity and
its contribution to total export. In 2011, agricultural export to India hit $99
million, a 46.6 per cent rise compared to 2010 and accounted for 63.3 per cent
of the city’s exports to India. Other big exports included rubber and pepper,
said Huynh Khanh Hiep, vice director of Ho Chi Minh City’s DoIT.
Meanwhile, Ho Chi Minh City’s
imports from India also increased, especially in pharmaceuticals. In the first
nine months of 2012, pharmaceutical imports from India hit $59.6 million, a
15.6 per cent jump compared to 2011’s corresponding time, said Hiep.
According to Vietnam’s Ministry
of Industry and Trade (MoIT), the value of exports from Vietnam to India
reached $992 million and $1.55 billion in 2010 and 2011, respectively.
Meanwhile, exports from India to Vietnam increased from $1.74 billion in 2010 to
$2.3 billion in 2011.
In the first nine months of 2012,
Vietnam’s exports to India were valued at $1.22 billion while India’s export to
Vietnam were at $1.6 billion.
In recent years, Vietnam’s
exports to India have registered higher growth than India’s exports to Vietnam.
Vietnam’s trade deficit with India reduced from $1.7 billion in 2008 to $792
million in 2011, according to Abhay Thakur, India’s consul general to Vietnam.
In the first nine months of 2012,
Vietnam’s trade deficit was $375 million.
Growth areas for Vietnamese
exports are mobile phones and accessories, computer hardware and electronics,
minerals and agro-commodities like coal, rubber, coffee and pepper. Growth
areas for Indian exports are animal feed, pharmaceuticals, machinery and equipment,
cotton yarn and plastic products.
Hai Long | vir.com.vn
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