India and Vietnam Expand Ties with New Trade Agreement
India and Vietnam have signed a new bilateral trade agreement, expanding on their existing economic relationship. The agreement focuses on promoting trade in goods and services, boosting investment, and enhancing economic cooperation between the two countries.
The agreement, signed in New Delhi by representatives from both countries, covers a wide range of sectors, including textiles, pharmaceuticals, agriculture, and information technology. India`s Minister of Commerce and Industry, Piyush Goyal, hailed the agreement as a “milestone” in the historic relationship between the two nations.
Under the new agreement, Vietnam will reduce tariffs on Indian goods, including agricultural products such as rice and sugar. India, in turn, will offer similar concessions on Vietnamese goods, including seafood, coffee, and pepper.
The agreement also includes provisions for the establishment of a Joint Working Group on Trade, which will facilitate the exchange of information and cooperation between the two countries. Additionally, the agreement aims to streamline customs procedures and enhance trade facilitation.
The new agreement comes at a time when both India and Vietnam are looking to expand their economic ties with other regional powers. Vietnam has signed other trade agreements recently, including the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and the RCEP (Regional Comprehensive Economic Partnership), which includes China, Japan, South Korea, and Australia. Similarly, India has been pursuing closer economic ties with Japan, Australia, and the United States.
The India-Vietnam trade relationship has been growing steadily in recent years, with bilateral trade reaching $11.3 billion in 2020. However, there is still room for growth, especially in the areas of technology and investment.
The new agreement is expected to provide a significant boost to India`s efforts to increase its exports to Vietnam, which currently account for only 1.5% of Vietnam`s total imports. India is also seeking to increase investment in Vietnam, which has been attracting a growing number of foreign investors in recent years.
Overall, the new trade agreement between India and Vietnam represents a significant step forward in the economic relationship between the two countries. With the benefits of increased trade and investment, both India and Vietnam stand to gain from this historic agreement, which is sure to deepen their friendship and cooperation in the years to come.