The change represents a continued and significant deceleration after the deficit peaked at US$1.7 billion in 2008.
Pepper
Apart from the traditional exports, including pepper, rubber and footwear, more and more Vietnamese products with higher added values were shipped to India in 2013, such as mobile phones, computers, electronics and components.
Leading economists attribute the higher added values as the most important single factor contributing to the much improved trade deficit and expect to see this trend in the future.
In addition, Vietnam’s exports to India have been afforded more favourable treatment since the ASEAN-India Free Trade Agreement came into effect in 2010.
India’s recognition of Vietnam’s full market economy has greatly facilitated Vietnamese products finding easier access to the Indian market which generally imposes trade barriers and protective instruments.
A Vietnam-India Joint Sub-Committee on Trade was established and successfully held its first meeting in New Delhi, India, on November 18, 2013.
