In the first seven months of the year, Vietnam’s exports of phones and components to India surged to an impressive $1.15 billion, marking a staggering 102% increase compared to the same period last year.
This product group, which stands alone as the sole billion-dollar earner from India, leads Vietnam’s export portfolio to this vast market, accounting for 21.5% of the total export value.
The significant spike in phone and component exports to India comes amid a booming demand for smartphones in the country. According to Statista, a German data platform, India’s smartphone market is projected to reach $44.6 billion this year, with an estimated 187.6 million units expected to be sold.
“India’s smartphone market is experiencing a sharp increase in demand, particularly for affordable devices, driven by its large population and price-sensitive consumers,” Statista reports. On average, each person in India is expected to own 0.1 smartphone devices this year.
Beyond smartphones, other significant export items to India fall within the machinery and electronics category. Computers and components take the second spot with an export value of $943 million, representing 17.5% of the total. Meanwhile, other equipment and spare parts contributed $507 million, accounting for 9.4% of exports.
India has also ramped up its imports of various Vietnamese goods, including cashew nuts, plastics, wood and wood products, animal feed and raw materials, as well as vehicles and spare parts. These items have all seen growth ranging from over 50% to nearly 90% compared to the same period in 2023.
Overall, Vietnam’s export turnover to India reached $5.37 billion in the first seven months, a growth of 15.2%. On the other hand, Vietnam’s imports from India during this period amounted to $3.3 billion, marking a 9.2% decrease compared to the same timeframe in 2023.
According to the Ministry of Industry and Trade, the trade structure between Vietnam and India is considered balanced and complementary. India plays a crucial role in supplying essential raw materials and finished goods to Vietnam, including steel, chemicals, pharmaceuticals, textiles, animal feed, and seafood.
Conversely, Vietnam focuses on exporting products such as personal computers, mobile phones and components, steel, chemicals, wood and wood products, footwear, spices, coffee, and pepper to the Indian market.
