Vietnam’s Trade Partnerships with India and the U.S.: A Comparative View

Vietnam has emerged as one of the most dynamic players in global trade, cultivating strong bilateral and multilateral partnerships to boost its exports, diversify its imports, and strengthen its role in regional logistics. Two of Vietnam’s most strategically significant trade partners today are India and the United States, each offering distinct advantages and trade synergies.

While both countries contribute to Vietnam’s economic growth, the nature, scope, and future potential of Vietnam’s trade relations with India and the U.S. differ in several key areas — including product categories, investment trends, and strategic interests. This comparative analysis explores the evolving trade relationships and how they impact sourcing and logistics for international businesses.

🌏 Vietnam–India Trade: Strategic South-South Cooperation

Vietnam and India share a long-standing diplomatic and economic relationship, strengthened by cultural ties and regional alignment through ASEAN and the Indo-Pacific frameworks. In recent years, this partnership has expanded through strategic trade cooperation in several industrial sectors.

Key Trade Stats (2024):

• Bilateral trade volume: Over $15 billion

• Top Vietnamese exports to India: Mobile phones, computers, electronics, and machinery

• Key imports from India: Pharmaceuticals, iron & steel, textiles, and cotton

India is an essential source for raw materials that feed Vietnam’s processing and re-export manufacturing economy. This South-South dynamic allows both countries to leverage complementary strengths, especially in pharmaceuticals, IT, and textile-related trade.

A bestsourcing agent Vietnam plays a critical role in coordinating raw material flows and locating Indian-supplied components within Vietnamese manufacturing hubs for final product assembly.

🇺🇸 Vietnam–U.S. Trade: High-Tech, High-Value, and Growing Fast

The United States is one of Vietnam’s largest trading partners, especially on the export front. In 2024, trade between the two nations surged, driven by increased American demand for goods made outside of China and Vietnam’s expanded manufacturing capacity.

Key Trade Stats (2024):

• Bilateral trade volume: Over $124 billion

• Vietnamese exports to the U.S.: Footwear, furniture, apparel, electronics, seafood

• Imports from the U.S.: Machinery, aircraft components, cotton, animal feed

Unlike Vietnam–India trade, which is heavily focused on intermediate goods, the Vietnam–U.S. relationship leans more toward finished goods exports, high-value agricultural imports, and investment in advanced manufacturing.

Enterprises tapping into this corridor often consult with a bestsourcing agent Asia to ensure product compliance with U.S. standards, coordinate logistics, and manage sourcing across multiple Southeast Asian suppliers.

🔄 Investment Trends: Manufacturing and Market Access

Indian Investment in Vietnam:

Indian firms have invested in manufacturing, energy, and chemicals. Notably, Indian pharmaceutical companies view Vietnam as a gateway to Southeast Asia, given its regulatory environment and growing healthcare demand.

U.S. Investment in Vietnam:

American companies, including Apple, Nike, and Intel, have expanded their manufacturing and R&D operations in Vietnam. The U.S. has also supported Vietnam in strengthening digital infrastructure, clean energy, and tech education.

Vietnam’s participation in the Indo-Pacific Economic Framework (IPEF) further strengthens its trade relationship with the U.S., fostering transparency, sustainability, and supply chain resilience.

🛠️ Sectors with the Most Potential

In each of these sectors, businesses can benefit from reliable local insights and compliance support. That’s where sourcing agents play a key role, particularly in bridging the communication and regulatory gaps between regions.

⚓ Logistics & Trade Facilitation: What’s Changing?

With increasing freight volumes, both India and the U.S. have stepped up collaboration with Vietnam on logistics initiatives:

• India–Vietnam Shipping Link: Efforts to establish direct shipping routes between Chennai and Hai Phong are underway, which would drastically cut logistics lead times.

• U.S.–Vietnam Maritime Modernization: U.S. support has helped modernize ports like Cai Mep-Thi Vai, enhancing capacity for direct shipments.

While both partnerships are evolving, the U.S. corridor currently enjoys better infrastructure and faster export processing, making it a strong route for time-sensitive products.

🔐 Trade Agreements: Leveling the Playing Field

Vietnam has signed key trade agreements that influence how it interacts with India and the U.S.

With India:

• ASEAN–India Free Trade Agreement (AIFTA) enables tariff reductions on a wide array of goods.

With the U.S.:

• While there is no bilateral FTA, Vietnam benefits from Most Favored Nation (MFN) status and various bilateral investment promotion agreements.

The lack of a full FTA with the U.S. is somewhat offset by private sector cooperation, especially in logistics and e-commerce compliance.

🧭 Strategic Sourcing Advice for Businesses

To take full advantage of Vietnam’s trade relationships with India and the U.S., companies should:

• Map sourcing routes based on trade incentives and port access

• Use FTAs and preferential tariffs to reduce costs

• Manage risks through compliance audits and supplier diversification

• Leverage regional hubs to balance cost and delivery timelines

Collaborating with a bestsourcing agent Vietnam ensures that buyers receive accurate factory assessments, efficient logistics planning, and local regulatory compliance—all essential for international trade success.

🧩 Final Thoughts: Two Partners, Distinct Pathways

Vietnam’s dual partnerships with India and the United States represent different but equally important trade narratives. While India is a resource partner and logistics ally, the U.S. is a market destination and investment leader.

By strategically managing relationships with both, Vietnam diversifies its economy, enhances resilience, and opens up sourcing and export opportunities for foreign businesses.

As regional trade continues to shift, working with a bestsourcing agent Asia can help businesses navigate cross-border complexities and scale up confidently across the Indo-Pacific corridor.