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1Institute of South Asian, West Asian and African Studies, Vietnam Academy of Social Sciences, Hanoi, Vietnam
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This study examines the trade structure between Vietnam and India during the period 2010–2024 from a global value chain (GVC) perspective in order to assess the feasibility of a Vietnam–India Comprehensive Economic Partnership Agreement (CEPA). While bilateral trade has expanded significantly since the implementation of the ASEAN–India Trade in Goods Agreement and the upgrading of bilateral relations to a Comprehensive Strategic Partnership, existing cooperation frameworks remain limited in addressing non-tariff barriers, services, investment and production linkages. Using trade data at the Harmonised System two-digit level from the International Trade Centre and service trade data from the World Trade Organization, the study applies the Theil Index, Revealed Comparative Advantage and Trade Complementarity Index to analyse trade concentration, comparative advantages and bilateral complementarity. The findings reveal a clear pattern of vertical complementarity between the two economies. Vietnam shows strong specialisation in downstream manufacturing sectors, particularly electronics and industrial processing, while India maintains advantages in upstream sectors such as pharmaceuticals, chemicals, cotton and intermediate goods. The results also indicate that India’s export structure is more diversified and more compatible with Vietnam’s import demand than vice versa. From a GVC perspective, the study argues that a CEPA framework would be more suitable than a traditional Free Trade Agreement in promoting deeper production linkages, supply chain integration and strategic economic cooperation between the two countries amid ongoing global supply chain restructuring.
Vietnam–India, Comprehensive Economic Partnership Agreement, trade structure, global value chains, trade complementarity, Revealed Comparative Advantage, Theil Index, Trade Complementarity Index
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