Remove barriers, activate Vietnam - India agribusiness connection
Vietnam India Agribusiness connection
(INDIA) From June 14-17, Minister of Agriculture and Rural Development Le Minh Hoan led a delegation to visit India and attend the G20 Agriculture Ministers Meeting.
The objective of the mission is to try to maintain the growth momentum of agricultural, forestry and fishery exports and diversify markets in the context of the world market showing signs of slowing down.
India has the largest population in the world (over 1.4 billion people), and is the 5th largest economy in the world. Indian economy has prospered in recent times. India is one of the fastest growing economies in the past 10 years with an average annual GDP growth rate of 5.6%.
GDP per capita in 2022 will reach 2379 USD. If economic growth momentum is maintained, India will surpass Germany to become the world's fourth largest economy in 2026 and surpass Japan to take third place in 2032. multinational consortium diversifying its supply chain away from China.
With a population of over 1.4 billion people and a fast-growing economy, India is one of the world's largest and potential markets for agricultural products. However, bilateral trade in general and AFF trade in particular is still very modest.
Bilateral trade between Vietnam and India, although reaching a record value of 15 billion USD in 2022, only accounts for about 1.1% of India's total import and export turnover. As for AFF trade, the trade turnover between the two sides is also very modest, reaching only 1.87 billion USD in 2022. Vietnam imports AFF from India 1.42 billion USD and exports only 465 million USD, trade deficit reached 953 million USD.
Vietnam and India have a long-standing and traditional friendship. In particular, India is one of four countries with a comprehensive strategic partnership with Vietnam. However, there are many challenges in the AFF trade between the two countries.
One of the challenges impeding trade in NTFPs is that trade barriers, especially India's tariff and non-tariff barriers for Vietnamese agro-forestry products are still relatively high, such as imposing minimum import prices for commodities. pepper and cashew nuts imported from Vietnam.
Businesses on both sides still lack information on market demand, import regulations, distribution channels, import hubs, etc.
In that context, the delegation headed by Minister Le Minh Hoan paid a bilateral visit to India in conjunction with the meeting of the Agriculture Ministers' Meeting of the world's largest economies (G20). This is the first visit to India by Vietnam's Agriculture Minister in the past 10 years. On the first working day (June 14, 2023), Minister Le Minh Hoan and the Delegation worked with the Minister of Trade and Industry of India.
During the working session with Indian Minister of Trade and Industry Piyush Goyal, the two sides frankly discussed challenges and barriers in the bilateral AFF trade relationship, the India-ASEAN trade relationship, and other issues. To open the AFF market, advocate for Vietnam to host the relocation of the Secretariat of the World Pepper Organization (IPC), which is currently located in Jakarta, Indonesia, to Ho Chi Minh City, Vietnam.
Very frank exchanges are needed for the two sides to understand each other better and next, the specialized agencies of the two sides will work to facilitate trade in NLTS. Minister Le Minh Hoan affirmed that the two sides will jointly create trade facilitation and open a brighter new beginning for the AFF trade relationship which has been quiet in the past time.
Next, the Delegation coordinated with the Embassy of Vietnam and the Federation of Trade and Industry of India (FICCI) to organize the Vietnam - India Agricultural Business Connection Forum. Attending the forum were 50 Indian businesses and leaders of 4 Vietnamese associations including Vietnam Pepper Association, Vietnam Coffee - Cocoa Association, Vietnam Rubber Association, and Vietnam Cashew Association.
Speaking at the Forum, Minister Le Minh Hoan hoped that the two countries' businesses would connect and promote trade and investment in the AFF sector, which still has a lot of room between the two countries to realize the traditional friendship. and affirmed that trade economy is an important pillar in Vietnam - Vietnam - India relations by Vietnamese Prime Minister Pham Minh Chinh and Indian Prime Minister Narendra Modi at their recent meeting on May 20. 2023 in Hiroshima Japan.
At the Forum, the FICCI representative highly appreciated the rapid development of Vietnam's agricultural industry and wished to learn about Vietnam's connection with the global agricultural value chains.
Speaking at the forum, Minister Le Minh Hoan affirmed that Vietnam wishes to connect and learn from Indian businesses about the application of science - technology and digital technology to develop green, ecological and sustainable agriculture. stability of Vietnam. Thereby, contributing to global food security and sustainable development.
At the same time, in the context that the AFF trade relationship between the two sides is still quiet, Minister Le Minh Hoan and the representative of FICCI affirmed that the two sides will promote cooperation for a bright future in trade - investment relations. NLTS Vietnam - India. After the speech of Minister Le Minh Hoan, the associations and businesses of the two sides conducted business exchanges and connections.
During the working program, the Delegation will continue to meet with the Indian Ministry of Agriculture and Farmers' Welfare, the Club of Indian Business Executives, as well as bilateral working sessions with the Minister of Agriculture. G20 countries to facilitate trade, connect trade - investment in the field of AFF.