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Vietnam exports to India soar in 2012
Publication Date : 21-01-2013
Vietnam is estimated to have exported over US$1.77 billion worth of goods to India in 2012, 16 per cent surge on the previous year, according to the Vietnam General Department of Customs.
The five staples recording the highest value were mobile phones and components ($444 million); machinery and equipment ($224 million); natural rubber ($118 million); computer and electronics ($142 million) and coffee ($53 million). These five groups of products also accounted for 65 per cent of the country's total export turnover to India.
However, some items experienced an export value slump with ore and other minerals; iron and steel witnessing the biggest decreases at 95 per cent and 68 per cent to only $1.17 million and $36.5 million, respectively.
According to the Vietnam Trade Office in India, with a population of 1.2 billion mostly comprised of middle – and low-income earners, India is a promising market for Vietnam due to its similar consumption demands.
Experts from the Export-Import Department said India has a large import demand for Vietnam's tea, coffee, cashew nut and pepper for re-export purposes. The country also needs a significant amount of natural rubber for its large-scale production of car tyres for domestic consumption and export.
However, to make full use of the Asean-India Free Trade Agreement, Vietnamese businesses should intensify market study efforts to seek new partners. They should also carefully study customs procedures as well as other information about the market, experts said.
Besides trade, the two countries' bilateral cooperation in investment has also developed significantly in recent years.
Vietnam has become an attractive investment destination for Indian investors, according to the ministry's African, West Asian and South Asian Markets Department.
In 2012 alone, Indian businesses pumped $19.35 million into 10 new projects in Vietnam. The latest addition has brought total Indian investment capital in Vietnam up to $252.4 million.