Published On : 29-Nov-2021
Noisy metropolises, lush green paddies, picturesque lakes and beaches- these are just some of the sights one would see in the country of Vietnam. Located on the eastern edge of South-East Asia, Vietnam is a verdant land of extraordinary natural beauty and immense economic opportunity. It is a socialist driven market economy with a one-party system. The government in its present state was established after the culmination of the Vietnam War, fought between the socialist North(supported by the Soviet Union and China) and the capitalist south(supported by the United States of America). Since the war, fastidious government action has made it an exemplary model of poverty and hunger eradication. Economic development has naturally followed. PricewaterhouseCoopers estimates that Vietnam could be the fastest growing of the world’s emerging economies by 2025. While HSBC predicts Vietnam to surpass Norway, Singapore and Portugal in GDP terms by 2050.
Read on to know more about the trade and politics of Vietnam.
In the preceding five years, the Indian President, Prime Minister and External Affairs Minister have all paid a state visit to Vietnam on three separate occasions. Bilateral trade between India and Vietnam flourishes after years of cooperation and strong ties. Even after a 22.47% decrease in bilateral trade (primarily due to COVID19), Indian exports to Vietnam during the fiscal year 2020-21 were valued at $4.99 Billion. India primarily exports items such as iron and steel, cotton, frozen meat, auto component and seafood. Indian exports such as cotton, animal feeds and pharmaceuticals saw an increase in demand.
Indian imports from Vietnam for FY 2020-21 were valued at $6.12 Billion, the primary commodities being electrical machinery and equipment, chemicals, copper and agro-based commodities.
Indian companies such as Adani Group, Mahindra, SRF, HCL and Suzlon have existing or planned operations in Vietnam.
The country of Vietnam is an important centre of manufacturing and production. Blessed with a long coastline on the South China Sea, the Vietnamese government has ensured great economic development for the country with its competitive minimum wage and tariffs. Therefore, Vietnam’s primary export items are Electrical & Electronic equipment ($111.09 Billion); Machinery, Nuclear Reactors and Boilers ($18.42 Billion); Footwear, Gaiters and the like ($17.25 Billion); Articles of apparel ($13.70 Billion).
Vietnam’s top export partners are the United States ($77.07 Billion); China ($48.88 Billion); Japan ($19.27 Billion); South Korea ($19.13 Billion) and Hong Kong ($10.44 Billion). India ranks 10th on the list of Vietnam’s export partners.
Besides remittances and export income, Vietnam earns a substantial amount of its foreign exchange through tourism. The Vietnamese Buddhist Pagodas, beach destinations and hillsides are a favourite among visitors. Besides, much of what Vietnam imports are raw materials for assemblage and are further sent off to export partners.
Vietnam’s primary imports are Electrical, Electronic Equipment ($95.44 Billion); Machinery, Nuclear Reactors, Boilers ($21.57 Billion), Plastics ($15.90 Billion); and Mineral Fuels, Oils, Distillation products ($12.93 Billion).
Vietnam imports the most from China ($84.20 Billion); South Korea ($46.86 Billion); Japan ($20.28 Billion); the United States ($13.76 Billion); and Thailand ($10.95 Billion).
Vietnam is a country with a strong-willed young population, a healthy middle class and an exceptional work culture. With thriving agriculture and tourism sectors, Vietnam becomes a promising choice for Indian trade investment.
Cybex has a database of tonnes of export import data that will enable your firm in its quest to achieve international trade success. Reach us at [email protected] or call(+911204517800) or WhatsApp(+9971093718) to access the latest Vietnam trade data.
