The visit of Vietnam President To Lam to India is anticipated to enhance the relationship between the two countries under their Comprehensive Strategic Partnership. Economic engagement between India and Vietnam has been expanding significantly, covering various sectors like trade, investment, digital technology, manufacturing, and energy. Since the establishment of the Comprehensive Strategic Partnership in 2016, both nations have been fostering political trust and enhancing practical collaboration.
Bilateral trade has been a cornerstone of this partnership, with the total trade volume escalating from $5.4 billion in 2016 to a remarkable $16.46 billion in 2025, as reported by Vietnam’s Ministry of Industry and Trade. The growth trajectory has persisted into 2026, with trade amounting to $4.8 billion in the first quarter alone, reflecting a substantial 28% surge year-on-year. Vietnam’s exports to India have been dominated by manufactured and processed goods such as electronics, machinery, and agricultural products, while India’s exports include textile materials, plastics, pharmaceuticals, and steel, supporting Vietnam’s production and export ecosystem.
Experts highlight the increasing complementarity between the two economies, with India’s strengths in raw materials, pharmaceuticals, and software aligning effectively with Vietnam’s manufacturing capabilities and global trade integration. This synergy is propelling both nations towards deeper supply chain integration and production linkages, moving beyond direct competition.
India and Vietnam are strategically positioning themselves as significant players in the regional supply chain restructuring as global companies diversify their manufacturing bases. Investment collaborations are also expanding, with Indian enterprises undertaking projects in 20 provinces and cities in Vietnam. Concurrently, Vietnamese companies are expanding their presence in India, with initiatives like Vingroup’s proposal to establish an electric vehicle manufacturing unit in Tamil Nadu. Emerging sectors for industrial collaboration include textiles and footwear, bolstered by global supply chain realignments and the complementary strengths in raw materials and manufacturing.
