On July 27, 2022, the Trade Office of the Vietnamese Embassy in India, in coordination with Vietnam Maritime Corporation, held an online conference to launch a new shipping route connecting central Vietnam with India and Bangladesh.
The conference was attended by Mr. Pham Viet Chien, Ambassador of Vietnam to Bangladesh; Mr. Le Quang Trung, Deputy General Director of Vietnam Maritime Corporation (VIMC); Mr. Bui Trung Thuong, Counsellor and Head of the Trade Office of the Vietnamese Embassy in India; Mr. Bui Kieu Hung, General Director of Nghe Tinh Port Joint Stock Company; along with businesses from Vietnam, India, and Bangladesh.
In his opening remarks, Mr. Bui Trung Thuong said that India is Vietnam’s 8th largest trading partner, and bilateral trade is expected to reach the target of USD 15 billion in 2022, the year marking the 50th anniversary of diplomatic relations between Vietnam and India. However, the trade potential between the two sides remains very large, and one of the bottlenecks is transport connectivity, particularly the lack of a direct sea route between the two countries. The new shipping route connecting central Vietnam with Kolkata, India, operated by VIMC, will therefore open up major business cooperation opportunities for Vietnamese and Indian companies.
Mr. Le Quang Trung said that, in its development strategy, VIMC regards India as an important trade partner for Vietnam. In recent times, sharply rising sea freight rates have seriously affected shipping activities worldwide and in Vietnam in particular. To find solutions for Vietnam’s import-export activities, VIMC has therefore actively pursued market research and analysis, and worked to connect and expand new shipping routes between Vietnam and regions around the world, including India.
In November 2021, VIMC established a direct container shipping route linking Hai Phong – Malaysia – India to ease cargo transport pressure, stabilize shipping capacity, and support domestic businesses. Building on this success, from May 2022 VIMC also began deploying a 1,000-TEU container vessel into Cua Lo – Nghe An to carry cargo to India. As a direct Vietnam–India connection, this route helps shorten transit time compared with existing routes that must stop at transshipment points (14-15 days versus 21-22 days on other routes).
"In addition, VIMC has also studied the demand for expanding to Chittagong port in Bangladesh, targeting a launch in August 2022," Mr. Trung said.
Sharing information on the morning of July 27 that the second vessel had left port on its voyage to India, Mr. Bui Kieu Hung, General Director of Nghe Tinh Port Joint Stock Company, pledged to provide the best possible service to customers within the transport connectivity chain between Vietnam and India, Bangladesh.
Pham Viet Chien, Ambassador of Vietnam to Bangladesh, expressed hope that this route would boost Vietnam–Bangladesh trade, which still holds great potential, bringing benefits to shipping lines and businesses of both countries. The Embassy of Vietnam in Bangladesh stands ready to support Vietnamese and Bangladeshi businesses in business matching, and to share useful information and investment and business opportunities between the two countries.
Providing further information, Mr. Do Trong, Vice Chairman of the Vietnam – Bangladesh Chamber of Commerce and Industry, said that in 2021 Vietnam–Bangladesh bilateral trade turnover rose 50% compared with 2020, and is expected to grow a further 25% in 2022 over 2021 to reach USD 1.5 billion (87% of which is Vietnam’s exports to Bangladesh, with construction materials accounting for about 20%). However, this figure remains quite modest compared with the scale of the Bangladeshi market (170 million people), partly due to the lack of a direct transport route between the two countries.
From India, Mr. K.S. Rai, Director of Three Bees Shipping, who has extensive experience in cargo transport between Vietnam and India, affirmed that this new shipping route will help Vietnamese businesses access the eastern region of India, home to more than 600 million people, opening up major opportunities for trade between the two countries.
VNA