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Country Profile- Vietnam

TPCI_Graph__VIETNAM Country

Vietnam is located in easternmost part of South Asian Continent. It is a developing country and is a member to the most successful regional economic group-ASEAN.

The United Nations Development Programme ranks Vietnam 116th in terms of Human Development Index with the value of 0.649. It is ranked 69th  in ‘Ease of Doing Business’ by World Bank released in 2018 with 21st rank in dealing with construction permits and 27th  rank in getting electricity.

As per World Economic Outlook Database, 2018 estimate Vietnam is ranked 35th in world in GDP in PPP terms at a value of US$ 705.78 billion while ranked 47th in GDP in nominal terms at a value of US$ 240.78 billion. The per capita GDP of Vietnam in PPP terms is estimated to be US$ 7463 and in nominal terms it is estimated to be US$ 2546 in 2018 by World Economic Outlook Database.

TRADE STATISTICS

In 2017, Vietnam imported US $ 210.63 billion worth of goods. Its export was over US $ 213.93 billion in value in 2017 which accounted for 1.2 % of the total exports in the world. As per ITC trade map Vietnam ranks 28th among the top world exporters, list is led by China.

The top trading partner of Vietnam is China, followed by USA and South Korea. India does not rank in the list of top 10 trading partners of Vietnam, but has a significant import from Vietnam of worth US$ 4.15 billion and an export value of US$ 8.12 billion from India to Vietnam, resulting into a trade surplus of US$ 3.97 billion for India.

TPCI_Graph__VIETNAM'S TOP TRADING PARTNERS

 

VIETNAM’S MERCHANDISE TRADE WITH WORLD

Vietnam’s exports to the world have followed its path of imports throughout, as can be seen in the graph below with an exception of South Korea and USA from where Vietnam has significantly higher imports and exports respectively. The country has maintained a trade surplus post 2012 barring 2015. Before 2012, Vietnam maintained a trade deficit with the world.  In 2017 it had the highest trade surplus in the decade valued at of US $ 3.31 billion.

 TPCI_Graph__VIETNAM-WORLD MERCHANDISE TRADE

VIETNAM’S EXPORT TO THE WORLD

Vietnam’s total export in 2017 amounted to US $ 213.9 billion. Natural resources are the primary export products of Vietnam. Its top export product at HS-6 digit level last year was telephones for cellular networks, Parts of telephone sets for cellular networks, Electronic integrated circuits, Sports footwear and Fresh or dried cashew nuts. These products constitute just 28% of the total export basket of Vietnam, i.e. its export basket is much diversified.

TPCI_Graph__VIETNAM'S EXPORT TO WORLD

 

VIETNAM’S IMPORTS FROM THE WORLD

Vietnam’s import basket is primarily led by Parts of telephone sets for cellular networks, Electronic integrated circuits for processors and controllers, Electronic integrated circuits excluding processors and controllers, Medium oils and Printed circuits which together make up the Top 5 imports of Vietnam. The import basket is primarily dominated by HS code 85 i.e. electrical machinery and equipment.

TPCI_Graph__VIETNAM'S IMPORT FROM WORLD

 

INDIA- VIETNAM MERCHANDISE TRADE

India consistently maintained a trade surplus with Vietnam.  Surplus reached the highest in 2017 with a value of US$ 3.97 billion. There is no trend between India and Vietnam in terms of trade balance except that it has remained in favour of India in the last decade.

 TPCI_Graph__INDIA-VIETNAM MERCHANDISE TRADE

INDIA’S EXPORT TO VIETNAM

India’s total exports to Vietnam amounted to US $ 8.12 billion in 2017. Its top five exports at HS-6 digit level were Frozen boneless bovine meat, Frozen shrimps and prawns, Flat-rolled products of iron or non-alloy steel, Frozen fish, Raw Cotton (neither carded nor combed) and Fruits of the genus Capsicum.

 TPCI_Graph__INDIA'S EXPORT TO VIETNAM

 

INDIA’S IMPORT FROM VIETNAM

India’s total import from Vietnam in 2017 was US $ 4.12 billion. India’s import was dominated by Parts of telephone sets for cellular networks, Wire of refined copper, Cross section <= 6 mm, Parts of automatic data-processing machines, Tubes and pipes of refined copper and Aluminium oxide. The import basket of India for the products imported from Vietnam is primarily dominated by electrical machinery and equipment and copper and aluminium wires. 

 TPCI_Graph__INDIA IMPORT FROM VIETNAM

Vietnam is an important focus of India’s act east policy. Vietnam along with other ASEAN countries participated as the Chief Guest in last republic day parade of India. India has an FTA with ASEAN resulting into a significant trade with the south Asian countries. According to statistics published by the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam as of December 2017, India invested in 169 projects in Vietnam with total investment capital of $756 million. Further in 2017 alone, Indian firms poured $187.5 million into Vietnam, equal to 25 per cent of the total FDI from India in the past 30 years. India’s Council of Agricultural Research and Vietnam’s Ministry of Agriculture and Rural Development designed a comprehensive work plan for 2018-2020 to promote the transfer of technology and technical expertise in the field of agriculture and its allied sectors.  India has been a vocal supporter of Vietnam’s claim in the South China Sea on freedom of navigation and sovereignty issues. Recently India and Vietnam decided to step up defence cooperation and oil exploration to boost their bilateral ties in the South China Sea.

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