ASSOCHAM, VCCI Sign MoU to Boost India–Viet Nam Trade and Investment Cooperation

The MoU was exchanged between Milind Hardikar, Chair, Maharashtra State Development Council, ASSOCHAM, and Ho Sy Hung, Chairman of VCCI, in the presence of Maharashtra Chief Minister Shri Devendra Fadnavis and To Lam, General Secretary of the Communist Party of Vietnam Central Committee and President of the Socialist Republic of Vietnam.

The agreement comes at a time when India and VietNam are expanding their economic and strategic engagement. During To Lam’s State Visit to India from May 5 to May 7, 2026, both countries elevated their relationship to an Enhanced Comprehensive Strategic Partnership, signalling a stronger push for cooperation in trade, technology, critical minerals, energy, tourism, defence, maritime security and people-to-people exchanges. 

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Key Highlights of the ASSOCHAM–VCCI MoU

• Strengthening bilateral trade: The MoU aims to create structured engagement between Indian and Vietnamese industries, helping businesses explore new markets, partnerships and investment opportunities.
• Focus on investment and industry cooperation: The partnership is expected to support closer interaction between companies, industry bodies, investors and policymakers from both sides.
• Important sectors identified: The cooperation will look at opportunities in education, tourism, primary industries, resources, manufacturing, technology and services.
• Boost for Maharashtra–VietNam business ties: Since the MoU was exchanged in the presence of the Maharashtra Chief Minister, it is also expected to open doors for stronger state-level cooperation, especially in areas such as manufacturing, infrastructure, agriculture, tourism, logistics and skilling.
• Industry-to-industry engagement: ASSOCHAM and VCCI are expected to act as bridges between businesses in both countries by encouraging delegations, B2B meetings, sectoral discussions and investment promotion activities.

Why This MoU Matters

India and VietNam have emerged as natural economic partners in the Indo-Pacific region. Both countries share strong historical ties, growing trade relations and a common interest in building resilient supply chains.

According to the Embassy of India in Hanoi, India–VietNam bilateral trade reached US5.76 billion during April 2024–March 2025, registering a 6.40% year-on-year increase. The trade relationship has grown sharply from around US$200 million in 2000 to nearly US4.89 billion in 2024, reflecting the expanding business potential between the two economies. 

The latest diplomatic push has also set an ambitious direction for the future. India and VietNam are now targeting US$25 billion in bilateral trade by 2030, with new focus areas including critical minerals, rare earths, energy cooperation and digital payments. 

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Growing India–Viet Nam Economic Partnership

The India–Viet Nam economic relationship is no longer limited to traditional trade. It is now expanding into newer sectors that are important for future growth.

• Trade and manufacturing: India exports products such as pharmaceuticals, iron and steel, machinery, auto components, cotton, fishery products and agricultural items to Viet Nam. Viet Nam, in turn, exports mobile phones, electronic components, computers, chemicals, plastics, rubber, coffee, pepper and cashew to India. 
• Digital payments and financial technology: During the recent high-level visit, both sides welcomed an MoU between the Reserve Bank of India and the State Bank of Viet Nam on financial innovation and digital payments. The two countries also agreed to promote QR-code-based retail payment linkages, which could benefit tourists and businesses. 
• Tourism and people-to-people ties: With improved connectivity and growing interest in Buddhist, cultural, business and leisure tourism, both India and Viet Nam are looking to increase travel flows. The ASSOCHAM–VCCI MoU can help tourism companies, hospitality players and travel platforms develop new offerings for both markets.
• Critical minerals and resources: India and VietNam are also exploring cooperation in critical minerals and rare earth elements, which are vital for electric vehicles, electronics, renewable energy and advanced manufacturing. This is important as countries look to reduce dependence on concentrated global supply chains. 
• Education and skilling: Education has been identified as a key area under the ASSOCHAM–VCCI understanding. Indian institutions, edtech companies and skill development organisations may find new opportunities in VietNam, while Vietnamese students and professionals could benefit from India’s higher education and training ecosystem.

Maharashtra’s Role in the Partnership

Maharashtra is one of India’s most industrialised and economically important states. Its strong base in manufacturing, ports, logistics, finance, IT, pharmaceuticals, automobiles, textiles, start-ups and services makes it a natural gateway for Vietnamese companies looking to expand in India.

For Indian businesses, especially those based in Maharashtra, Viet Nam offers opportunities in manufacturing partnerships, export markets, tourism, agriculture, food processing, infrastructure and emerging technologies. The presence of Chief Minister Devendra Fadnavis during the MoU exchange gives the agreement added importance from a state-level investment perspective.

What Industry Can Expect Next

Following the MoU, businesses on both sides can expect more structured platforms for engagement. These may include:

• Business delegations between India and VietNam
• Sector-specific investment meetings
• Trade promotion events
• Joint industry reports and policy discussions
• B2B matchmaking for exporters, manufacturers and service providers
• Collaboration in education, tourism, resources and primary industries
• Greater participation of Vietnamese and Indian companies in trade fairs and investment forums

The ASSOCHAM–VCCI MoU is more than a ceremonial agreement. It comes at a time when India and Viet Nam are actively working to deepen economic and strategic ties, with a clear target of expanding bilateral trade and creating new business opportunities.

For India, VietNam offers a fast-growing ASEAN market and a key partner in the Indo-Pacific. For Viet Nam, India provides a large consumer base, skilled workforce, strong industrial ecosystem and expanding investment opportunities. With ASSOCHAM and VCCI now formalising cooperation, the next phase of India–VietNam engagement could be driven not just by governments, but also by industries, entrepreneurs and state-level partnerships.

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