Facilitating Vietnam-India Trade
The Ministry of Industry and Trade joined hands with the Indian Embassy to host a seminar discussing the ASEAN-India Trade in Goods Agreement (AITIG) on January 12, 2010 in Hanoi with a view to learn the opportunities and challenges that the agreement could bring to Vietnamese and Indian businesses.
India and ASEAN inked the agreement on August 13, 2009 in Bangkok after six years of negotiations. The AITIG Agreement came into effect as of January 1, 2010. Accordingly, import tariffs on 5,000 agricultural and industrial products, accounting for more than 80 per cent of traded products, will be lifted from 2013 to 2016. The agreement has a significant meaning for ASEAN in the context of the global economic crisis as it provides trade link opportunities for ASEAN and India.
The agreement is of great significance for ASEAN member countries, including Vietnam as ASEAN is Indian fourth largest trading partner, behind the EU, the US and China. In 2008, the two-way trade turnover between ASEAN and India reached US$47 billion and is expected to hit US$60 billion in 2009 and US$70 billion in 2010.
The head of the Department for Africa, West Asia and South Asia, Ly Quoc Hung, said that relevant agencies and businesses from the two countries should thoroughly understand the agreement to make full use of opportunities and challenges brought about by the agreement. He emphasized that co-operative potential between the two countries is very large. Vietnam wants Indian businesses to further invest in the fields of oil and gas exploration and processing, petrochemicals, mineral processing, information technology and animal food processing, Mr. Hung added.
Indian Ambassador to Vietnam, T.L. Muana said that India is actively negotiating free trade and trade preferential agreements with other countries and with important trade partners to restart the Doha negotiation round on multilateral trade.
The trade value between Vietnam and India is still modest over the two countries’ total trade value. Vietnam exports US$400 million to India and imports US$2 billion worth of goods from India. Statistics released by the Vietnam General Department of Customs showed that Vietnam’s exports to India amounted to US$361.18 million in the first 11 months of 2009, 0.3 percent more than in 2008 and 0.7 percent of Vietnam’s total export value.
Vietnam exports to India computers, electronic items and components; machinery, equipment and spare parts; coffee, pepper, coal, minerals and ores; and chemicals and chemical derivatives. It imports from India cattle feed and materials, pharmaceutical products, plastic materials, pesticide and materials. Vietnam imported US$1.46 billion worth of goods from India in the first 11 months of 2009, 24.4 percent more than in the same period in 2008 and 2.3 percent of the total import value. The agreement is expected to create a driving force to boost trade relations between the two countries in the coming period./.
Tags: Vietnam India cooperation
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