Vietnamese exporters urged to tap into South Asian markets

Vietnamese exporters urged to tap into South Asian markets

Lê Thị Mai Anh from the Ministry of Industry and Trade speaks at the event. — VNA/VNS Photo

South Asia presents major trade opportunities for Vietnamese exporters due to its large demand for goods and relatively modest quality requirements compared to Vietnam’s traditional export markets, Lê Thị Mai Anh from the Ministry of Industry and Trade (MoIT) told a seminar in HCM City on June 26.

The event was co-organised by the MoIT’s department of overseas market development and the municipal international integration centre. Mai Anh noted that the South Asian region, comprising India, Pakistan, Bangladesh, Nepal, Bhutan, Maldives, Sri Lanka, and Afghanistan, has a combined population of over 1.8 billion, accounting for nearly a quarter of the global population. Among these, India, Pakistan, Bangladesh, and Sri Lanka are considered key potential markets for Việt Nam to boost trade and investment cooperation.

She said given their large populations and rising incomes, South Asian countries are importing a diverse range of goods including consumer products, processed food, healthcare and beauty items, electronic components, and construction materials. Notably, there is a growing trend among them to diversify sourcing away from China, making Southeast Asia, and Việt Nam in particular, a more attractive partner.

However, Mai Anh cautioned that newcomers face steep hurdles, as low average incomes make the markets highly price-sensitive and fiercely competitive. She also pointed to the risk of sudden policy shifts and a growing wave of protectionism across the region.

To succeed in South Asia, Vietnamese businesses should thoroughly research market conditions and partner needs, she said. With Vietnam’s manufacturing strengths, exporters can focus on the growing middle-class and youth-oriented consumer trends, actively join trade fairs, and make use of popular e-commerce platforms in India such as Amazon India, Flipkart, and Daraz.

Assoc. Prof. Dr. Trịnh Thu Thu Hương from the Foreign Trade University said logistics remains a key barrier. Apart from India, most South Asian countries face challenges related to poor transport infrastructure, lack of intermodal connectivity, and high shipping costs. Customs procedures are still largely manual, leading to prolonged clearance times, which traders should factor into their planning.

Nevertheless, Hương noted that these challenges also represent opportunities. In markets with easy access, competition tends to be much higher.

Sharing insights from long-term business activities in Bangladesh, Do Van Trong, head of the Vietnamese community liaison board in Bangladesh, said only about 300 Vietnamese enterprises are currently operating in the country, with bilateral trade reaching around 1 billion USD annually.

For new market entry, Trong recommended that businesses consider establishing a direct presence and developing marketing strategies tailored to local tastes and cultural preferences.

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