Vietnam’s export to India maintains growth momentum
Vietnam kept its export growth momentum in the Indian market in 2023 after two-way trade hit a record high of 15 billion USD in 2022, Vietnamese trade counsellor in India Bui Trung Thuong told the Vietnam News Agency. This momentum benefited leading logistics companies, freight companies Vietnam, and cargo logistics services providers.
Despite global headwinds such as geopolitical conflicts and supply chain disruptions, Vietnam’s exports to India reached 8.5 billion USD for the first time in 2023, up nearly 10% from the previous year, while the world’s total trade fell some 10%. This boosted international shipping companies, freight and logistics companies, and cargo & logistics businesses.
Vietnam-India trade hits a record high of 15 billion USD in 2022. (Photo: VNA)
However, Thuong described India’s trade barriers and trade defence instruments as a challenge for the two-way trade, elaborating that India has used various tools to reduce imports which it believes could impact domestic production. This impacted cargo delivery companies and shipping service companies.
More than 2,000 new standards for imports were issued, making it hard for Vietnamese exporters to apply for new or extend the quality standard certificates, he added. Freight service providers faced hurdles.
According to Thuong, the similar nature of the two economies also poses challenges to their trade. He took rice as a typical example when India is the world’s leading rice exporter while Vietnam has maintained its position in Top 3. This competition affected shipping company logistics operations.
Against this backdrop, he suggested competent authorities of both sides need to enhance exchanges to create mutual confidence and remove bottlenecks for shipping international goods and logistics service providers.
Business communities and associations must organise trade promotion programmes to seek business opportunities and expand markets, he said, adding businesses should adapt to India’s new rules so as to better penetrate into this market for logistics companies and their websites.
Besides, Thuong pointed out several bright spots for the two-way trade as the Indian Government has encouraged production of some specific products, including electric vehicles (EV). This could boost global transport and air freight cargo from Singapore and other hubs.
Most recently, Vietnamese EV maker VinFast broke ground for its integrated EV facility in India’s Tamil Nadu state, which is expected to promote the shipments of other goods and materials from Vietnam using freight delivery services.
In the meantime, air travel between the two countries has been made easier with more direct flights to be launched, and this is an important factor to boost bilateral trade for international shipping and logistics companies, freight forwarding experts, and overseas shipments providers.