VIETNAM, INDIA PLAN DIGITAL CORRIDOR TO BOOST BILATERAL TRADE TO US$25 BILLION

A view of Cat Lai Port in HCMC. Vietnam and India have great potential to develop cooperation in logistics and supply chain solutions - PHOTO: LE VU

HCMC – Plans to establish a bilateral digital corridor and connect cross-border payment infrastructure between India’s UPI system and Vietnam’s NAPAS network are expected to become a breakthrough solution for businesses in both countries to accelerate trade flows and help lift bilateral trade to US$25 billion by 2030.

The strategic initiative was unveiled at the Vietnam – India Cross-Border E- Commerce Business Forum held on May 18 in Noida City, Uttar Pradesh State, India.

As the global economy increasingly shifts online, experts said the two countries still have significant room to expand cooperation in the digital economy, particularly in artificial intelligence (AI), financial technology (fintech), logistics, and supply chain solutions.

To narrow existing gaps and tap into digital trade potential projected to reach as much as US$500 billion by 2030, the World Association for Small and Medium Enterprises (WASME) proposed a five-pillar roadmap at the event.

At the center of the proposal is the creation of a Vietnam–India MSME Digital Corridor aimed at simplifying customs procedures and harmonizing e-invoicing and business certification systems. MSME refers to micro, small, and medium-sized enterprises.

The initiative also includes a technical solution to directly connect India’s Unified Payments Interface (UPI) platform, which processed 241.6 billion transactions in fiscal 2025-2026, with Vietnam’s NAPAS payment network. Pilot operations and commercial deployment are expected to begin in 2027.

Amid stronger institutional coordination and digital infrastructure development by both governments, experts urged Vietnamese businesses to proactively standardize products to international benchmarks and deepen the application of big data and AI in supply chain management.

They also said businesses should fully leverage tariff incentives under the ASEAN-India Trade in Goods Agreement (AITIGA) to strengthen competitiveness and expand access to India’s 1.4-billion-consumer market.

At the forum, representatives of Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade said the country’s e-commerce market is maintaining annual growth of around 25% and is expected to reach US$37.2 billion by 2026.

Notably, Vietnam’s Law on E-commerce, which will take effect on July 1, is expected to create a transparent legal framework that supports businesses in using digital platforms as a strategic export channel.

Source: The Saigon Times