India’s relations with Vietnam are marked by growing economic and commercial engagement, especially in recent years. Trade between India – Vietnam is growing rapidly. According to Indian statistics, during the Financial Year (FY) April 2020 – March 2021, bilateral trade between India and Vietnam reached US$ 11.12 billion, with Indian exports to Vietnam amounting to US$ 4.99 billion and Indian imports from Vietnam at US$ 6.12 billion. In FY 2020-2021, for India, Vietnam was the 15th largest trading partner globally and the 4th largest within ASEAN, following Singapore, Indonesia and Malaysia.
Doi Moi Model
The communist party of Vietnam had introduced an economic reform “Đổi Mới” (Renew/Renovation) in 1986 with the objective to create a Socialist oriented market economy and since then the country has never looked back. Vietnam’s burgeoning economy has a plethora of opportunities and the country’s robust manufacturing sector is compelling for companies to exit China and set up bases in Vietnam.