India vs Vietnam in tradeIndia has tough competition in trade to which country, if we think about this question our neighbouring country China will come in our mind but sadly, reality is otherwise. We have tough competition with small countries like Bangladesh and Vietnam in the field of trade aournd the globe. Total population of Vietnam is 10 crore equal to a small state of India but nevertheless, Vietnam has almost surpassed India in export of their manufactured goods. In 2010 India's export business was 220 billion dollars whereas Vietnamese export was only 72 billion dollars but in last 10 years our export business remained absolutely sluggish, on the other side Vietnamese government focussed on how to increase their export as a result both India and Vietnam have a neck to neck fight at more or less 318 billion dollars in 2020.
In 2018 Vietnam sold its electronic goods in international market worth Rs 34 billion dollars comparing to India which could export similar goods of Rs 8 billion dollars only.
Why Vietnam is much ahead of India in trade following reasons can be cited.
- Vietnam has effective trade diplomacy e.g India has great ties with present US government but we have not signed any trade deal whereas European Union had some issues with Vietnam concerning Vietnamese export policy, they sorted out all their issues with Europe.
- Vietnam is a one party nation so decisions are taken on time.
- Vietnam is able to attract foreign companies to establish their manufacturing units especially of electronic items. like Samsung and LG are manufacturing their goods in Vietnam.
- Vietnam is a small country and most of their industries are located near port, which facilitates accessibility of manufactured goods to port in less time. Their goods reach port in less than 1 day but this process needs 7-10 days in India.
Governments wants to take tough reforms but opposition parties don't allow the government to go for it. India can be stronger in trade if government is free to take tough decision. Do you agree or not?