Vietnam, India Target $25B Trade with Market Access Reforms

Vietnam and India are betting on infrastructure and market access as the tools to nearly double their current trade relationship. At a high-level meeting in New Delhi this month, the two countries committed to reaching $25 billion in annual bilateral trade—a significant jump from where they stand today—by removing the regulatory and logistical barriers that have slowed commerce between them.

The agreement emerged from the 19th session of the Vietnam-India Joint Commission Meeting on Trade, Economic, Scientific and Technological Cooperation, co-chaired by Vietnam's Politburo Member and Foreign Minister Le Hoai Trung and India's External Affairs Minister Subrahmanyam Jaishankar. The two officials reviewed what has changed since their last formal meeting in Hanoi nearly three years ago and mapped out concrete steps for the next phase of economic partnership.

For textile and apparel makers—industries that depend on speed and reliability—the practical gains could be substantial. Both countries identified direct air routes, improved road and rail connections, and better seaport access as essential to making supply chains work. They also agreed to implement QR-code payment systems that would allow Indian and Vietnamese businesses to settle transactions more easily across borders. These are not glamorous commitments, but they address real friction points that add cost and delay to every shipment.

On the trade side itself, the ministers acknowledged that market-access rules remain a sticking point. Jaishankar pressed Vietnam to open its doors to Indian pharmaceuticals, fresh fruit, meat, and other goods. Trung, in turn, signaled Vietnam's openness to Indian investment in infrastructure, pharmaceuticals, energy, and other sectors, though he deferred the technical details to a bilateral trade subcommittee meeting scheduled for later in 2026. This is where the actual work will happen—where tariffs get negotiated, certifications get aligned, and the $25 billion target either becomes real or remains aspirational.

Beyond trade, the two countries are also deepening ties in science and technology. They plan to convene subcommittees focused on digital technology and emerging technologies, with an eye toward joint research projects and stronger connections between universities, research institutes, and innovation hubs. Trung proposed a long-term cooperation strategy centered on strategic technologies—a signal that both nations see their relationship as more than transactional.

The ministers also used the occasion to strengthen political and diplomatic bonds. They committed to maintaining regular exchanges through party, state, and parliamentary channels, and they are preparing to mark the 55th anniversary of diplomatic relations in 2027. There is talk of designating 2027 as a friendship year, which would include cultural and people-to-people exchanges. On the global stage, both countries agreed to coordinate at the United Nations and other multilateral forums, with India backing Vietnam's role in the Indo-Pacific Oceans Initiative and Vietnam pledging to work with other ASEAN members to complete a trade agreement review with India.

The real test will come in the months ahead. The infrastructure investments need to be funded and built. The market-access rules need to be harmonized. The payment systems need to be deployed. And the $25 billion target—ambitious but not impossible for two countries with a combined population of nearly 1.5 billion and growing middle classes—needs to translate from a talking point into actual commerce flowing across borders.