
India: A Promising Market for Vietnam’s Agricultural Exports
At VietGlobal Export, we always explore new opportunities to expand Vietnam’s agricultural reach. One of the most exciting prospects right now is India, a huge and growing market for Vietnamese farm produce. Join us as we dive into the potential and challenges of tapping into this promising market.
Vietnam’s Opportunity in India’s Agricultural Market
India, with its population of over 1.4 billion, presents a massive opportunity for Vietnam’s agricultural exports, especially fruits and vegetables. According to the Ministry of Agriculture and Rural Development (MARD), both Vietnam and India have strengths in agriculture, but the trade between the two countries is still relatively small.
In 2023, Vietnam’s agricultural exports to India were valued at just $507 million, accounting for only 1.5% of India’s total agricultural imports. This shows that there’s significant room for growth, considering Vietnam’s strengths in products like dragon fruit, pepper, coffee, cashew nuts, and tea.
India has a growing demand for these products, along with vegetable oil, juice, sweet potatoes, and passion fruit. However, many Vietnamese businesses face challenges in entering the Indian market, primarily due to difficulties in establishing business connections and a lack of information about India’s market standards.
Connecting with Indian Customers
Although Indian import standards for agricultural products are generally less strict than those in Europe or China, navigating the market can still be tough for Vietnamese businesses. Dragon fruit, in particular, has gained popularity in India, with Indian customers praising its quality. Vietnamese companies like Thuận Tiến Cooperative have successfully showcased their products at international fairs, leading to long-term export contracts. But, as Trung notes, the volume of dragon fruit exported to India is still modest due to these logistical challenges.
India’s demand for dragon fruit alone is nearly 50 million tonnes annually. Yet, even with this massive demand, getting dragon fruit from Vietnam to India can be challenging due to the long distance and higher transportation costs.
Overcoming Challenges in the Indian Market
One major hurdle is the geographical distance between Vietnam and India, which not only increases shipping costs but also risks reducing the quality of products by the time they reach Indian customers. Chí Anh, Founder and CEO of Ago Import-Export Co., Ltd., mentions that preserving product quality during long transport is one of the key challenges his company faces.
However, there are solutions to these challenges. Businesses can reduce costs by participating in online trade fairs or using social media and digital platforms to reach potential customers. Many Indian companies use social networks to connect with partners, and building a trustworthy, sustainable brand can open doors in this market.
Many companies have successfully established long-term contracts with Indian customers by leveraging these online tools and participating in international trade events. These efforts have resulted in direct business connections, with Indian buyers visiting Vietnam to see production processes firsthand.
Building a Strong Presence in India
According to Rocky Ngọc Thạch, CEO of Smart Link Logistics, many foreign firms are eyeing the Indian market as a hub for future business growth. Currently, about 47 direct shipping lines operate between Vietnam and India each week, further highlighting the growing trade opportunities.
To thrive in the Indian market, businesses need to focus on maintaining product quality, building a strong brand, and ensuring reliable transportation. Choosing the right partners and anticipating logistical challenges will be key to long-term success.
Stay Connected with VietGlobal Export
At VietGlobal Export, we are dedicated to helping Vietnamese businesses explore new markets like India. Follow us on social media for the latest market updates, or contact us to learn how we can help your business expand with top-quality Vietnamese agricultural products. Let’s grow together!