India-Vietnam bilateral trade should go up by at least 30 per cent to $20 billion a year from the present level, the country’s ambassador to India said on Monday, adding that the atmosphere now is ‘very conducive’ to promote trade further.

Bilateral trade between the countries stood at $15 billion in 2024, which ambassador Ngyuen Thanh Hai said is not commensurate with the potential.

“We would like to achieve a target of $20 billion. We need to work with India on trade and investment,” the ambassador said, while addressing members of Bharat Chamber of Commerce in Calcutta.

Prime minister Narendra Modi met his Vietnamese counterpart at the sidelines of the Brics summit in Brazil on Sunday, the ambassador said, adding that such interactions at the highest level of the two governments provide ‘guidelines’ to take bilateral relations forward.

“India is among the first few countries that Vietnam has set up a strategic partnership with. It is also one of the first countries that elevated the partnership to a comprehensive strategic level in 2016 when PM Modi visited Vietnam. Trade is an important pillar in our partnership with bilateral trade reaching $15 billion. But if you look at the total volume of each of the countries, it is a small proportion, only 2 per cent. So, there is a lot of potential. We need to find a way to further our trade with each other,” the ambassador said.

While the trade between the two countries is steady, concerns are being raised in many quarters in India that China is using the South East Asian country as a conduit to gain greater access to India.

The ambassador said Vietnam’s policy is to accentuate trade with every country and suggested that it is part of a complex supply chain in the region and in the world.

Commenting on the bilateral trade agreement signed with the USA last week, Hai said the BTA would ultimately help Vietnamese business and people. Referring to trade deals of the past, the ambassador said, “Every time we joined a free trade agreement there has been a huge challenge. But we finally overcame those challenges and taken advantage of those agreements for the benefit of our people, our businesses.”

Apart from trade, Vietnam is also looking at expanding investment to India. “Companies in areas of electric vehicle manufacturing, petrochemical and other areas are looking at India. One of the most prominent examples is VinFast with the investment of $500 million in the first phase to set up their manufacturing plant. Their product will be launched in the coming months,” he said.

The ambassador also exhorted the trade between Bengal and Vietnam to go up and pointed towards direct air and shipping links with Calcutta.