New Delhi, May 5
The India visit of Vietnam President To Lam is expected to inject fresh momentum into bilateral ties, as India and Vietnam look to deepen cooperation and shape a new framework for growth under their Comprehensive Strategic Partnership, a report has said.
The visit comes at a time when economic engagement between the two countries is witnessing strong expansion across sectors such as trade, investment, digital technology, manufacturing and energy, according to Vietnam News report.
Since the establishment of their Comprehensive Strategic Partnership in 2016, both sides have steadily built political trust while strengthening practical collaboration.
Bilateral trade has emerged as a key pillar of this relationship, with total trade tripling from $5.4 billion in 2016 to a record $16.46 billion in 2025, according to Vietnam's Ministry of Industry and Trade.
The growth momentum has continued into 2026, with trade reaching $4.8 billion in the first quarter alone, marking a sharp 28 per cent increase year-on-year.
Vietnam's exports to India have been led by manufactured and processed goods such as electronics, machinery and agricultural products, while India's exports include textile materials, plastics, pharmaceuticals and steel that support Vietnam's production and export ecosystem.
Experts note that the two economies are increasingly complementary, with India's strengths in raw materials, pharmaceuticals and software aligning well with Vietnam's manufacturing capabilities and global trade integration, as per the report.
This complementarity is helping both countries move beyond direct competition towards deeper supply chain integration and production linkages.
As global companies diversify manufacturing bases, India and Vietnam are positioning themselves as key players in the ongoing restructuring of regional supply chains, the report stated.
Investment ties are also expanding, with Indian businesses now operating projects across 20 provinces and cities in Vietnam.
At the same time, Vietnamese companies are gradually increasing their footprint in India, including major proposals such as Vingroup's plan to set up an electric vehicle manufacturing facility in Tamil Nadu.
New areas of cooperation are also emerging. Textiles and footwear are becoming important sectors for industrial collaboration, supported by global supply chain shifts and complementary strengths in raw materials and manufacturing, the report said.
- IANS
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