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India Vietnam Trade

India-Vietnam bilateral trade reached a record US$ 18.27 billion in FY26, up 22.78% year-on-year, strengthening Vietnam's role as a key trade partner under India's Act East Policy.

Last updated: Oct, 2026

Introduction

India–Vietnam economic ties have continued to gain momentum, with bilateral trade reaching a historic high of nearly US$ 18.27 billion in FY26, up over 22.78% year-on-year. Vietnam’s strong 8% GDP growth in 2025 underscores its expanding role as a manufacturing and export hub. Both countries are pursuing deeper economic cooperation across trade, investment and connectivity under shared strategic and regional frameworks, reflecting a forward-leaning partnership.

India and Vietnam share traditionally close and cordial bilateral relations. The countries had historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, Vietnam is a partner county of India within the ASEAN framework and Mekong Ganga framework.

India-Vietnam Trade

  • Vietnam holds the 59th position in foreign direct investment (FDI) equity inflows into India with a cumulative FDI amount of US$ 90.75 million from April 2000-March 2026.
  • In FY26, bilateral trade between India and Vietnam reached US$ 18.27 billion. Indian exports to Vietnam amounted to US$ 6.66 billion, while Indian imports from Vietnam amounted to US$ 11.61 billion.
  • Vietnam holds the 19th position in exports and the 19th position in imports.
  • Vietnam occupies a central position in India’s Act East Policy as also in the Indo-Pacific strategy.
  • Vietnam is trying to diversify its trade and intends to make use of India’s growing market. The key Vietnamese exported products to India are mobile phones and components, computers, electronic products and components, chemicals, plastics, rubber, coffee, pepper, and cashew. The main Indian exported products to Vietnam are iron and steel products, textile materials, fishery, corn, pharmaceutical, pharmaceutical raw materials, and auto spare parts.

Major exports from India to Vietnam

  • India’s exports to Vietnam stood at US$ 6.66 billion in FY26.
  • India exported 4,343 commodities to Vietnam in FY26.
  • Major items exported by India to Vietnam included engineering goods (US$ 2.05 billion), followed by meat, dairy and poultry products (US$ 1.00 billion), marine products (US$ 648.62 million), organic and inorganic chemicals (US$ 405.04 million), drugs and pharmaceuticals (US$ 290.57 million), mica, coal and other ores, minerals including processed minerals (US$ 258.61 million), electronic goods (US$ 219.55 million), rice (US$ 195.70 million), cotton yarn, fabrics, made-ups and handloom products (US$ 189.58 million), oil seeds (US$ 138.24 million), cashew (US$ 110.94 million), and plastic and linoleum (US$ 108.35 million) during FY26.

Major imports by India from Vietnam

  • India’s imports from Vietnam stood at US$ 11.61 billion in FY26.
  • India imported 2,681 commodities from Vietnam in FY26.
  • Major items imported by India from Vietnam included electronic goods (US$ 5.36 billion), followed by iron and steel (US$ 1.04 billion), non-ferrous metals (US$ 914.62 million), machinery, electrical and non-electrical (US$ 703.54 million), artificial resins, plastic materials and related products (US$ 486.21 million), transport equipment (US$ 352.97 million), organic and inorganic chemicals (US$ 213.51 million), leather and leather products (US$ 194.22 million), metalliferous ores and other minerals (US$ 182.24 million), chemical materials and products (US$ 146.17 million), textile yarn, fabrics and made-up articles (US$ 142.88 million), fertilisers, crude and manufactured (US$ 139.51 million), wood and wood products (US$ 134.60 million), and professional instruments and optical goods (US$ 115.62 million) during FY26.

Economic Relations and Investments

  • On May 6, 2026, India and Vietnam elevated their bilateral ties to an Enhanced Comprehensive Strategic Partnership, reaffirming their commitment to expanding cooperation in trade, investment, defence, technology, renewable energy, and digital innovation. The two countries also set a target of US$ 25 billion in bilateral trade by 2030, further strengthening the India–Vietnam economic partnership.
  • In 2025, Vietnam introduced a 10-year Golden Visa programme, aimed at attracting long-term investors, entrepreneurs and skilled professionals from India by offering extended residency benefits and pathways to permanent settlement, thereby enhancing the environment for deeper business engagement and cross-border investment.
  • On September 6, 2025, Vietnam’s VinFast launched its VF6 and VF7 electric SUVs in the Indian market, priced competitively in the premium EV segment, reinforcing cross-border commercial linkages and expanding opportunities for bilateral automotive trade and technology cooperation.
  • On August 4, 2025, Vietnamese electric vehicle manufacturer VinFast inaugurated its first manufacturing plant in India in Thoothukudi, Tamil Nadu, marking a significant milestone in India–Vietnam industrial cooperation; the facility, part of a planned US$ 500 million investment in India, will serve domestic demand and act as an export hub for South Asia, the Middle East and Africa.
  • On July 27, 2025, Vietnamese electric vehicle maker VinFast opened its first showroom in India in Surat, Gujarat, ahead of the inauguration of its Tamil Nadu manufacturing plant, showcasing its premium electric SUVs VF 6 and VF 7 and signalling a major step in expanding Vietnamese business presence and EV trade in India’s growing automotive market.
  • In April 2025, Vietnam is finalising a US$ 700 million deal with India to buy BrahMos supersonic cruise missiles for its Su-30 jets and coastal defence, becoming Asia’s second buyer after the Philippines. The Mach 3 missile’s precision and multi-platform capability mark a major boost to Vietnam’s modernisation push.
  • India’s investments in Vietnam are estimated at around US$ 1.9 billion including investments routed through third countries. According to Vietnam’s Foreign Investment agency, as of April 2021, India has 299 valid projects with total invested capital of US$ 909.5 million, ranking 26th among countries and territories investing in Vietnam. Significant sectors of Indian investment are energy, agro-processing, mineral exploration, agriculture, manufacturing, agrochemicals, IT, and auto components.
  • Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up Quick Impact Projects (QIPs), each valued at US$ 50,000, in different provinces of Vietnam for the development of community infrastructure. India has 317 valid projects worth over US$ 1 billion in Vietnam, ranking 23rd out of the 129 countries and territories investing in that country.
  • As of April 2025, Vietnam is finalising a US$ 700 million deal with India to acquire BrahMos supersonic cruise missiles for its Su-30 jets and coastal defence, becoming Asia’s second buyer after the Philippines. The Mach 3 missile’s precision and multi-platform capability mark a major boost to Vietnam’s modernisation push.
  • India’s investments in Vietnam are estimated at around US$ 1.9 billion including investments routed through third countries. According to Vietnam’s Foreign Investment agency, as of April 2021, India has 299 valid projects with total invested capital of US$ 909.5 million, ranking 26th among countries and territories investing in Vietnam. Significant sectors of Indian investment are energy, agro-processing, mineral exploration, agriculture, manufacturing, agrochemicals, IT, and auto components.
  • Currently, India is one of the top 8th trading partners of Vietnam while Vietnam is the 15th largest trading partner of India and the fourth in Southeast Asia. Vietnam occupies the 84th position in FDI equity inflows into India with a cumulative FDI amount of US$ 12.69 million from April 2000-September 2024.
  • Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up Quick Impact Projects (QIPs), each valued at US$ 50,000, in different provinces of Vietnam for the development of community infrastructure. India has 317 valid projects worth over US$ 1 billion in Vietnam, ranking 23rd out of the 129 countries and territories investing in that country.

Recent Trends & developments

  • On May 29, 2026, India and Vietnam strengthened their fintech partnership through a Memorandum of Understanding (MoU) between the Reserve Bank of India and the State Bank of Vietnam to enhance cooperation in digital payments and financial innovation.
  • On May 8, 2026, President of Vietnam Mr. To Lam highlighted the growing potential of the India-Vietnam economic partnership, stating that both countries can play a pivotal role in strengthening global supply chains.
  • On December 9, 2025, Vietnam’s largest conglomerate Vingroup announced plans to develop a US$ 3 billion multi-sector ecosystem in Telangana, India, covering smart urban development, electric mobility, healthcare, education, tourism and renewable energy, signalling a major Vietnamese corporate investment push into India’s fast-growing economy.
  • On October 26, 2025, at the 22nd ASEAN-India Summit in Kuala Lumpur, Malaysia, Vietnamese Prime Minister Mr. Pham Minh Chinh proposed strengthening economic connectivity, expanding people-to-people exchanges and promoting maritime cooperation to advance ASEAN–India relations, emphasising enhanced cooperation in SME support, high technology, renewable energy, infrastructure, logistics, AI and semiconductors, and adoption of the ASEAN–India Action Plan 2026–2030 to accelerate trade, investment, innovation and inclusive growth.
  • On June 25, 2025, India and Vietnam co-chaired the 13th Political Consultation and 10th Strategic Dialogue in New Delhi, where both sides reviewed progress in the Comprehensive Strategic Partnership, discussing cooperation across political, defence, security, maritime, trade, investment, energy, science & technology, digital, fintech, connectivity, culture, tourism, education and people-to-people ties.
  • On July 1, 2025, the Indo-Vietnamese film Love in Vietnam premiered at the Da Nang Asian Film Festival (DANAFF), marking the first cinematic collaboration between India and Vietnam. Directed by Indian filmmaker Mr. Rahhat Shah Kazmi, the film showcases Da Nang's iconic locales, promoting cultural ties and tourism between the two nations.
  • India and Vietnam held the 14th Defence Policy Dialogue in New Delhi on 1 August 2024, focusing on defence cooperation and future collaboration in cyber security, military medicine, and training. A Letter of Intent was signed to enhance training exchanges, reaffirming strong strategic ties under India’s Act East Policy.
  • On 12th May 2024, the visit of INS Kiltan to Cam Ranh Bay, Vietnam, is a testament to the strong friendship and strategic partnership between India and Vietnam. The visit aims to strengthen maritime cooperation, increase interoperability, and foster cultural exchanges between the two navies, further solidifying the longstanding ties between the two nations.
  • As informed in January 2023, India and Vietnam are set to begin talks on a potential trade agreement in an effort to boost bilateral trade and investment.
  • Ministry of External Affairs (MEA) Secretary (East) Mr. Saurabh Kumar and Vice Chairman of National Boundary Commission of Vietnam Mr. Trinh Duc Hai on June 1, 2023, discussed ways to further strengthen India-Vietnam bilateral relations including in the realm of defence, security, and maritime cooperation.
  • The Vietnam Trade Office in India, in collaboration with the National Investment Promotion and Facilitation Agency of India (Invest India), and the Federation of Indian Export Organisations (FIEO) held a teleconference on February 22, 2023, in which they discussed boosting trade in agriculture and processed food.
  • Defence Minister Mr. Rajnath Singh on June 19, 2023, held talks with his Vietnamese counterpart General Mr. Phan Van Giang, who is on a two-day visit to India.
  • India and Vietnam discussed measures for cooperation in the areas of law and justice. The two sides agreed to have official-level deliberations to take forward the discussions on broad areas of cooperation in the field of law and justice including entering into MoUs.
  • In the context of COVID-related travel limitations, Prime Minister Shri Narendra Modi and Prime Minister Mr. Nguyen Xuan Phuc held the first-ever India-Vietnam Virtual Summit on December 21, 2020, during which they adopted a historic “Joint Vision for Peace, Prosperity and People” to guide the future development of bilateral relations. On the sidelines of the Virtual Summit, the two Foreign Ministers also signed a Plan of Action for the period 2021-23 to implement the Joint Vision.
  • Speaker of Lok Sabha, Mr. Om Birla visited Vietnam in April 2022. During his visit, he stressed that India and Vietnam should further expand their cooperation in areas such as climate change, sustainable development, health care, and the digital economy.
  • Defence industrial collaboration is another area in defence relations. In June 2022, 12 High-Speed Guard Boats built by Indian manufacturer M/s Larsen & Toubro were handed over to Vietnam.
  • Foreign Minister of Vietnam Mr. Bui Thanh Son attended the Special ASEAN-India Foreign Minister’s Meeting held in New Delhi on June 16-17, 2022 to mark the 30th Anniversary of ASEAN-India Dialogue Relations.
  • The visit of India’s Defence Minister Mr. Rajnath Singh to Vietnam in June 2022 progressed the defence cooperation, including the signing of a new "Joint Vision Statement on India-Vietnam Defence Partnership towards 2030” and a “Memorandum of Understanding on Mutual Logistics Support”.
  • Both countries are emphasising the need for promoting trade and investment and cooperation in hi-tech for economic development taking the economic relationship to a much higher level for mutual benefits. In pursuance of this objective, Vietnam’s the Ministry of Industry and Trade, Government of Vietnam sent India a business delegation led by Mr. Do Quoc Hung, Deputy Director General of the Ministry, and 20 business communities in multi-sectors to India from July 18-22, 2022.
  • The two countries also have regular exchanges at the level of provinces, academic and thinktank institutions and youth delegations. Some of the recent exchanges between India and Vietnam include the visit of a delegation from Khanh Hao Province to India (September 10-15), ICCR’s cultural group visit to Vietnam (November 12-14) and the visit of a youth delegation from the Central Committee of the Ho Chi Minh Youth Union in November 2022.
  • On June 19, 2023, in New Delhi, Minister of Defence of India, Mr. Rajnath Singh and Vietnam's Minister of National Defence, General Mr. Phan Van Gang, discussed advancing bilateral defence cooperation. They focused on strengthening collaboration in defence industries and maritime security. India gifted the INS Kirpan Missile Corvette to enhance Vietnam's Naval capabilities, marking a significant milestone. The Defence Minister of Vietnam also visited DRDO headquarters to explore cooperation in defence research and joint production. The visit underscores Vietnam's importance in India's Act East Policy and the Indo-Pacific region.
  • DPIIT, Ministry of Commerce and Industry, hosted a Vietnamese delegation from July 31 to August 4, 2023, following a reciprocal visit to Vietnam in March. Minister of State for Commerce and Industry of India, Mr. Som Parkash emphasized fostering collaboration and foreign investments in the logistics sector during the event.
  • The 5th meeting of the India-Vietnam Joint Trade Sub-Commission (JTSC) took place in New Delhi on August 8, 2023. Co-chaired by Mr. Rajesh Agrawal and Ms. Phan Thi Thang, it resumed after a four-year hiatus due to the COVID-19 pandemic and other factors. Both sides reviewed the progress on bilateral trade and economic cooperation. Both sides agreed to look into better ways for shipping goods directly, working together on moving freight, and improving air connections to solve logistics issues.

Conclusion

India–Vietnam relations are advancing on a robust economic trajectory, supported by rising bilateral trade, favourable investment climates and complementary commercial structures. Vietnam’s resilient growth and India’s expanding export footprint have strengthened mutual economic engagement. As both nations explore broader cooperation in technology, industry and regional connectivity, the partnership is poised for sustained and diversified growth in the coming years.

India has a long-standing development partnership with Vietnam. It has made positive contributions towards capacity building, sustainable development goals and socioeconomic development. Both nations are working towards building stronger bilateral relations.

Contacts

FAQs

India exports to Vietnam are led by engineering goods (US$ 2.05 billion), followed by meat, dairy and poultry products, marine products, chemicals, pharmaceuticals, and minerals. The diversified export basket highlights India's growing role in supporting Vietnam's manufacturing and consumer economy.

India Vietnam trade has expanded steadily, with bilateral trade between India and Vietnam reaching a record US$ 18.27 billion in FY26, reflecting stronger economic integration under India's Act East Policy and deeper cooperation across trade, investment, and regional connectivity.

The India Vietnam economic partnership is increasingly driven by engineering, pharmaceuticals, automotive, electronics, renewable energy, defence, and digital technologies. Recent investments by VinFast and expanding cooperation in electric mobility are creating new avenues for bilateral industrial collaboration.

Vietnam's fast-growing manufacturing sector and strong export-oriented economy create trade opportunities between India and Vietnam in industrial raw materials, pharmaceuticals, agri-products, engineering goods, and auto components. The bilateral trade target of US$ 25 billion by 2030 is expected to further expand market opportunities.

Growing Vietnam imports from India reflect strong demand for industrial inputs such as iron and steel products, textile materials, pharmaceutical products, pharmaceutical raw materials, auto spare parts, fishery products, and corn, supporting Vietnam's manufacturing and export ecosystem.

Strong India Vietnam trade relations are supported by the Enhanced Comprehensive Strategic Partnership, ASEAN cooperation, the Mekong-Ganga framework, and regular business dialogues. These initiatives improve market access, strengthen supply chains, and encourage cross-border investment and technology collaboration.

Future trade opportunities between India and Vietnam are expected in electric vehicles, renewable energy, semiconductors, fintech, defence manufacturing, logistics, AI, and digital technologies. These sectors are gaining momentum through government partnerships and rising private sector investments.

The growth of India Vietnam trade is being driven by stronger regional supply chains, strategic cooperation under the Indo-Pacific framework, higher business investments, improved connectivity, and expanding collaboration in manufacturing, technology, and defence.

Indian businesses can strengthen India exports to Vietnam by targeting high-growth sectors, leveraging ASEAN-linked value chains, building local partnerships, and supplying products that support Vietnam's manufacturing ecosystem. Rising demand for industrial inputs and technology solutions offers long-term export potential.

Emerging export opportunities include EV components, clean energy technologies, industrial machinery, advanced engineering products, semiconductors, defence equipment, fintech solutions, and digital technologies. These sectors are expected to further strengthen the India Vietnam economic partnership over the coming years.

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