HANOI, VIETNAM – Media OutReach Newswire – July 30, 2024 – Vietnam and India have significantly developed agricultural sectors, with similar figures for agricultural, forestry and fishery exports, over US$50 billion per year. However, the import and export turnover […]

HANOI, VIETNAM – Media OutReach Newswire – July 30, 2024 – Vietnam and India have significantly developed agriculture, with similar export figures for agricultural, forestry and fishery products, over 50 billion USD per year. However, the import and export turnover of agricultural products between Vietnam and India remains low, reaching less than 2 billion USD/year. This fact shows that there is still much room for the two countries to boost the growth of agricultural import and export in the future. The state visit of Vietnamese Prime Minister Pham Minh Chinh to India from July 30 to August 1, 2024 at the invitation of Indian Prime Minister Narendra Modi is expected to promote bilateral relations, especially in agricultural and trade cooperation.

Large space for agricultural commercial development

The traditional friendship between Vietnam and India has deep historical roots, stemming from historical and cultural ties along with religious and commercial exchanges. Over the years, despite the geographical distance, interactions and exchanges between the two peoples have always been maintained. India is one of the seven countries that have established a comprehensive strategic partnership with Vietnam.

India and Vietnam are two countries with strengths in agriculture. In 2023, the export turnover of agricultural, forestry and fishery products between the two countries was equivalent. With an export turnover of agricultural products reaching 53.1 billion USD, India is the world's leading producer of milk, beans and millets; and the second largest producer of fish, rice, wheat, fruits and vegetables in the world. Agricultural products and processed foods play an important role in the Indian economy, ensuring national food security. India is also expanding the production of these products for export orientation.

Meanwhile, Vietnam's agricultural, forestry and fishery export turnover in 2023 will exceed 53 billion USD, with many key products meeting high quality standards, including VietGAP and GlobalGAP. Vietnam has also achieved many outstanding achievements in fruit exports, including dragon fruit, longan, mango, grapefruit, rambutan, mangosteen, durian, star apple and lychee. With traditional diplomatic relations, population size and socio-economic development speed, there is still much room for growth in agricultural import and export between Vietnam and India.

In 2023, Vietnam's agricultural exports to India remained modest at US$507 million, accounting for nearly 1.5% of India's total agricultural imports. Vietnam exports a wide range of agricultural products to India, including coffee, tea, pepper, cashew nuts, cinnamon, star anise, cardamom, rubber, confectionery, tra and basa fish, and cereal products.

In the opposite direction, Vietnam imported US$1.48 billion worth of agricultural products from India. The main agricultural, forestry and fishery products imported from India include animal feed and raw materials (US$501.3 million), corn (US$376.3 million), seafood (US$333.5 million), cotton (US$95.7 million), pesticides and raw materials (US$86.4 million), and vegetables and fruits (US$69.6 million).

With a population of over 1.4 billion, a rapidly growing economy and the world's highest rate of vegetarians (38%), India is one of the world's largest agricultural markets with significant growth potential.

Open agricultural markets

Vietnam has proposed that the two countries open their fruit and vegetable markets and sign bilateral trade agreements to facilitate agricultural trade.

Vietnam has asked India to consider opening its market for Vietnamese grapefruit and send pest risk analysis (PRA) reports for fresh fruits, including longan, rambutan and durian. The Vietnamese Ministry of Agriculture and Rural Development has just provided technical information on cashew nut shells and kernels to India and is preparing information on dried cinnamon leaves and annatto seeds to send soon.

Moreover, there is still much room for connecting businesses of the two countries and promoting trade and investment in agriculture, forestry and fisheries.

Agricultural cooperation between the two countries in the future

According to Mr. Nguyen Do Anh Tuan, Director of the Department of International Cooperation, Ministry of Agriculture and Rural Development, the two countries still have a lot of room to strengthen cooperation in a number of areas in the coming time.

That is to strengthen cooperation in trade, investment, science - technology and training in the agricultural sector for mutual benefit, promoting the best advantages of each side, especially in terms of population size and India's agricultural science - technology foundation, and Vietnam's ability to connect with the world market. Both countries should develop sustainable agriculture, actively respond to climate change and contribute to global food and nutrition security.

Furthermore, the two countries need to strengthen cooperation to facilitate trade in agriculture, forestry and fisheries as well as remove trade barriers and bottlenecks.

In addition, further strengthening cooperation in various agricultural sectors, prioritizing biotechnology, horticulture, post-harvest technology and agricultural mechanization, etc. will benefit both countries. The two countries need to promote market opening for two products: grapes and pomegranates from India, and grapefruit and durian from Vietnam. Both countries should also continue to exchange information and share techniques and experiences in aquaculture, including shrimp farming and pearl farming.

Mr. Nguyen Do Anh Tuan said that Vietnam hopes that India will consider and soon grant import licenses for Vietnamese fruits, including grapefruit, mango, lychee, longan, rambutan, durian, watermelon and passion fruit.

Source: Vietnamplus Newspaper