Macro Economy

India-ASEAN FTA needs to be expanded: Vietnam envoy

Our Bureau New Delhi | Updated on July 30, 2018 Published on July 30, 2018

The free trade agreement (FTA) between India and the 10-member ASEAN needs to be upgraded and expanded for the pact to deliver desired results, Vietnamese Ambassador to India Ton Sinh Thanh has said.

“The India-ASEAN FTA has not led to as much expansion in trade between the two countries. There is definitely a need to upgrade it and both sides are considering it. There is a need to expand the agreement to include more products,” Thanh said, speaking at an interaction with the media organised by the Indian Women’s Press Corps on Monday.

Stressing on the opportunities for an expansion in trade that existed between the two countries, Thanh said if trade was opened up, there was a possibility of bilateral trade expanding from the present $7 billion to $20 billion.

Giving an example, the Ambassador said that Vietnam imported about $10 billion of fabric for its textile industry every year. “India has the capacity of meeting our demand for textile inputs. If trade is opened up, we could be importing a lot of this item from India,” he said.

The trade deficit between India and the ASEAN has increased after the FTA in goods was implemented in 2009. According to industry figures, trade deficit has worsened account for approximately 75 per cent of India’s exports to ASEAN.

Thanh pointed out that Indian investment in Vietnam was low and there was a lot of potential for it to increase. “We know that Indian companies invested about $40 billion outside the country last year. Of that only $100-150 million was made in Vietnam. However, we do expect levels to rise as big Indian companies like Mahindra and Adani are looking for opportunities in Vietnam,” the Ambassador said.

Published on July 30, 2018

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.