July 8, 2025
Ambassador Nguyen Thanh Hai called current trade volumes underwhelming, given the economic potential of both countries
Strategic ties date back to 2016, when India and Vietnam elevated their partnership to a comprehensive strategic level during PM Modi’s visit
Vietnam is seeking to expand investment in India, with major companies like EV-maker VinFast committing $500 million for a manufacturing plant
The ambassador addressed concerns about Chinese goods entering India via Vietnam, stating that Vietnam is part of complex global supply chains
Vietnamese Ambassador to India, Nguyen Thanh Hai, called for a 30% increase in bilateral trade between India and Vietnam, aiming for a total of $20 billion annually, up from the current $15 billion achieved in 2024. Speaking at an event organised by the Bharat Chamber of Commerce in Calcutta, he said the current figures do not reflect the true trade potential between the two countries.
Hai noted that the environment was now “very conducive” to accelerate trade and investment between India and Vietnam. He cited the recent meeting between Prime Minister Narendra Modi and Vietnamese Prime Minister Pham Minh Chinh on the sidelines of the BRICS Summit in Brazil as a high-level interaction that sets the tone for future cooperation.
India was one of the first countries to establish a strategic partnership with Vietnam, which was further elevated to a comprehensive strategic partnership in 2016 during Prime Minister Modi’s visit to Hanoi. Despite the deepening diplomatic ties, bilateral trade currently represents only 2% of each country’s overall trade volume, suggesting significant room for growth.
While concerns have been raised in Indian quarters over China allegedly using Vietnam as a backdoor into the Indian market, Ambassador Hai responded by emphasising that Vietnam’s trade policy aims to foster relations with all countries. He added that Vietnam is part of a wider and more complex regional and global supply chain, implying that trade flows should be viewed in this context.
The ambassador also highlighted the potential for increased Vietnamese investment in India. He pointed to VinFast, Vietnam’s leading electric vehicle manufacturer, which is investing $500 million in the first phase of setting up a manufacturing facility in India. The launch of its products is expected in the coming months.
Vietnam’s recent bilateral trade agreement with the United States was also mentioned, with Hai saying that while such agreements often pose initial challenges, Vietnam has consistently managed to turn them into opportunities for business and public benefit.
Finally, the ambassador encouraged greater trade between Bengal and Vietnam, citing direct air and shipping links with Calcutta as a logistical advantage that can help deepen regional commercial ties.
Source: Telegraph