India-Vietnam Strategic Partnership and Trade Dynamics
On May 6, 2026, India and Vietnam elevated their diplomatic relations to an enhanced comprehensive strategic partnership, aiming to boost bilateral trade to $25 billion by 2030.
Trade Balance and Trends
- Over the past decade, the trade relationship between India and Vietnam has been one-sided:
- While India's exports to Vietnam have stagnated, its imports from Vietnam have increased significantly.
- The trade deficit between India and Vietnam:
- India faced a trade deficit with Vietnam for the first time in FY19.
- The trade deficit has been gradually rising since FY22, mirroring India's earlier trade deficit trends with China in the early 21st century.
Export Patterns
- India's exports to Vietnam showed a minimal increase:
- From $6.27 billion in FY15 to $6.7 billion in FY26.
- The share of agricultural goods in India's total exports to Vietnam declined significantly from 69% in FY15 to 38% in FY26.
Tourism Growth
- An MoU on tourism was signed to boost travel between the two countries.
- The number of Indian tourists visiting Vietnam saw a substantial increase:
- From 123,731 in 2022 to 398,673 in 2024.
