India’s Act East Policy and Vietnam’s Look West Policy have established a strong foundation for bilateral cooperation. Both countries share interests in enhancing regional connectivity, maritime trade, and sustainable industrial growth.

The Indo–Pacific Economic Framework (IPEF) and the ASEAN–India Free Trade Agreement are further facilitating market access and tariff reduction, making cross-border trade smoother for SMEs and large enterprises alike.

With the growing geopolitical shifts and supply chain diversification away from China, Vietnam has emerged as India’s ideal gateway into ASEAN, while Indian investors bring technical expertise, pharmaceuticals, and IT capabilities that complement Vietnam’s manufacturing ecosystem.

Key Sectors Driving the Next Phase of Growth

The next chapter in Vietnam–India trade will be powered by technology, renewable energy, and digital transformation:

• 💡 Renewable Energy: Indian companies are investing in wind and solar projects in Vietnam, leveraging Vietnam’s net-zero commitment for 2050.

• 🧬 Pharmaceuticals and Healthcare: India’s generic drug industry is finding new demand in Vietnam’s expanding healthcare system.

• 🖥️ ICT and Innovation: Indian IT firms are collaborating with Vietnamese counterparts to strengthen software development and cybersecurity capabilities.

• 🚢 Manufacturing and Supply Chain: As global companies diversify operations, Vietnam–India partnerships offer alternative supply routes for electronics and industrial goods.

Opportunities for Global SMEs

For global SMEs, this growing trade corridor offers vast opportunities:

• Vietnam provides access to ASEAN’s supply chain networks and manufacturing capabilities.

• India offers scale, innovation, and technical expertise.
  Together, they form a powerful bridge between Southeast Asia and South Asia, ready to fuel the next decade of regional growth.