Vietnam and India deepen economic ties as InCham marks 25 years

Founded in 1999, InCham has played a key role in fostering trade and investment between India and Vietnam. It has grown into a major economic force, representing Indian investors and enterprises in diverse sectors, including agro and food processing, infrastructure, energy, automotive, healthcare, and ICT. Beyond trade, InCham also serves as a key coordinator for Vietnam’s Indian community, which now exceeds 8,000 members.

Shri Sandeep Arya, Ambassador of India to Vietnam praised InCham’s contributions to bilateral relations, pointing to major advancements in 2024. Photo: Khanh Linh

Speaking at the ceremony, Shri Sandeep Arya, Ambassador of India to Vietnam, lauded InCham’s contributions, highlighting the exceptional progress in India-Vietnam economic relations throughout 2024.

“The past year has seen remarkable advancements in our partnership, underscored by high-level diplomatic engagements and significant business interactions,” Arya said. “Vietnam’s prime minister’s state visit to India in mid-2024, followed by a pivotal meeting between Prime Minister Narendra Modi and General Secretary To Lam in New York, reaffirmed the growing strategic alliance between our nations.”

The increasing business momentum was evident at the India Pavilion at VINAMAC in Ho Chi Minh City in November 2024, showcasing India’s expanding footprint in Vietnam’s industrial sector.

Bilateral tourism surged nearly 30 per cent in the past year, bolstered by new direct flight routes and rising business travel. One of the most striking developments was VinFast’s groundbreaking ceremony for its vehicle manufacturing facility in India, a landmark move that signals Vietnam’s investment expansion into the Indian market.

Despite global economic uncertainties, India-Vietnam trade saw a resilient 4 per cent growth in 2024, reaching $14.9 billion. While this marks steady progress, both governments and business associations recognise the need for accelerated efforts to maximise trade.

“The Indian Embassy in Vietnam is poised to lead business delegations in high-growth sectors such as electronics, IT, chemicals, and engineering,” Arya said. “At the same time, Vietnamese enterprises are being encouraged to explore opportunities in the Indian market through strategic business tie-ups and trade exhibitions, with full support from our commercial teams.”

According to the ambassador, 2025 is set to be a landmark year, defined by three core pillars of cooperation: expanding multi-sector trade, implementing key trade agreements and launching a $50 million creative startup fund.

Nguyen Quang Vinh, vice president of the Vietnam Federation of Commerce and Industry reaffirmed the organisation’s commitment to strengthening ties with InCham, ensuring that Indian businesses in Vietnam have the support needed to navigate the local market.

“With InCham’s insights and advocacy, we will work closely with the government to address business challenges, refine investment policies, and enhance Vietnam’s business climate. This will be instrumental in achieving the national GDP growth target of at least 8 per cent in 2025,” he said.

Navedu Kumar, chairman of InCham Hanoi, echoed these sentiments, emphasising the deep-rooted historical and cultural connections between India and Vietnam.

“India and Vietnam have walked hand in hand through history, overcoming colonial rule, forging independence, and now building an economic powerhouse together,” Kumar said. “Vietnam stands as a trusted partner of India, with bilateral trade reaching $14.81 billion in 2023-24.”

Highlighting the complementary nature of both economies, he pointed out the diversification of trade, with Vietnamese exports to India including mobile phones, electronics, coffee, and cashews, while India supplies Vietnam with iron and steel, textiles, and pharmaceuticals.

“As InCham Hanoi celebrates a quarter-century of unwavering dedication to fostering Vietnam-India economic ties, the journey ahead looks even more promising. With deepening collaboration across industries, increasing investment flows, and strengthened diplomatic engagements, the partnership between the two nations is poised to scale new heights,” Kumar said.

Trade gathering pace with India Vietnam and India are set to expand bilateral cooperation in new sectors, but some non-tariff measures from India may need removing.

India-Vietnam relations soar higher In December, the Indian Embassy to Vietnam organised an economic cooperation event on bilateral trade and investment. It assessed economic, trade, and business trends and sectoral opportunities in chemicals, pharmaceuticals, agriculture, garment and textiles, power generation, banking, and much more.

Vietnam, India economic cooperation to thrive following strengthening of strategic partnership Leaders of India and Vietnam have agreed to reinforce cooperation among their governments and businesses to boost two-way trade, investment, and their technological partnership.