Vietnam Runs $1.11B Trade Deficit with India in Jan-Nov
Vietnam incurred a $1.11-billion trade deficit with India in the first eleven months of 2009, the Ministry of Industry and Trade said on its website without giving on-year comparison.
Vietnam exported $361.18 million worth of goods to India, up 0.3% on-year and imported $1.47 billion, the ministry said.
Computers, electronics, machinery and coffee were Vietnam’s key products to the south Asian country and animal feed and materials, pharmaceuticals, iron and steel and plastic materials were the country’s main imports.
The ASEAN-India Free Trade Agreement (AIFTA) effective from early this year is expected to accelerate Vietnam-India trade ties and help Vietnam reduce its trade deficit with India, said the MoIT.
AIFTA will create many opportunities for Vietnam as 63% of its exports to India are eligible for tax removal.
Vietnam will start reducing tariffs in line with the AIFTA in March.
Under the agreement effective Jan 01, 2010, ASEAN and India will remove tariffs on many products such as electronics, machinery and garments from 2013 to 2016.
The Asean bloc and India will also cancel taxes on 5,000 industrial and agricultural commodities, making up 60% of their current traded goods.
Vietnam-India trade is forecast to reach $3 billion in 2010 and $5 billion in 2012 from the estimated $2.5 billion in 2009. (vinanet)
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