Trade with India on the rise
Trade with India on the rise
Bilateral trade between Viet Nam and India surpassed US$1.3 billion during the first quarter this year, representing a 40.2 per cent rise over the same period last year, according to the Vietnamese trade counsellor in India.
Out of the total figure, Viet Nam's exports earned $533 million, recording a surge of 59.3 per cent, while the country's imports from India were at $774 million, increasing by 29.5 per cent, said trade counsellor Nguyen Son Ha.
The country's trade deficit with India fell 8.3 per cent. Vietnamese export items to record high growth included phones and phone components ($238.5 million, up 174.6 per cent), computers, electronic products and components ($51.7 million, up 104.4 per cent), and coffee ($25.8 million, a rise of 118.3 per cent).
In addition, chemical products, fibre and timber products also saw increases of 42 per cent, 84 per cent and 82 per cent respectively.
Several categories of Vietnamese products saw declining exports, such as machinery and equipment ($40.7 million, down 32 per cent), natural rubber ($22.2 million, down 23 per cent) and pepper ($12.6 million, down 18.6 per cent).
India imports Vietnamese agro-forestry products such as coffee, pepper, cinnamon, fennel, tea and cashew nuts, which are processed and sold on to other countries. Each year, the country imports more than 500,000 tonnes of spices worth over $1.7 billion.
Meanwhile, Viet Nam imports materials for production, such as cotton, corn, medicines, steel, and textile and garment materials from India. Most of these imported products are used for processing, production and everyday consumption.
The prices of Indian products are relatively competitive compared to those from other markets, such as the US or Europe, largely due to the country's geographical proximity to Viet Nam and lower labour costs.
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