Best Products to Import from Vietnam to India 2026 Guide | BEFACH International
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Best Products to Import from Vietnam to India in 2025
May 2, 2026
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Best Products to Import from Vietnam to India in 2025
Best Products to Import from Vietnam to India: A Complete Trade Guide
Best Products to Import from Vietnam to India: A Complete Trade Guide
If you're looking to diversify your sourcing strategy and reduce dependency on traditional markets, understanding the best products to import from Vietnam to India can unlock significant profit margins. Vietnam has emerged as India's 15th largest trading partner, with bilateral trade reaching $13 billion annually. Under the ASEAN-India Free Trade Agreement (AIFTA), Indian importers enjoy preferential tariff rates on thousands of product categories, making Vietnamese goods increasingly competitive in the Indian market.
Why Import from Vietnam to India?
Vietnam offers Indian businesses a strategic advantage through its robust manufacturing infrastructure, competitive labor costs, and favorable trade agreements. The Comprehensive Economic Cooperation Agreement between ASEAN and India eliminates or reduces import duties on approximately 80% of traded products. Additionally, Vietnam's proximity to India compared to East Asian markets results in lower shipping costs and shorter lead times—critical factors for maintaining healthy inventory turnover.
The Vietnamese manufacturing sector specializes in labor-intensive industries where India faces domestic supply constraints. By sourcing from Vietnam, Indian traders can access high-quality goods at price points that enable competitive retail pricing while maintaining healthy margins of 15-25% on most product categories.
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When evaluating the best products to import from Vietnam to India, focus on categories where Vietnam maintains global manufacturing dominance and India offers strong consumer demand. These sectors consistently deliver reliable quality and compliance with Indian regulatory standards.
Textiles and Garments
Vietnam ranks among the world's top three textile exporters, producing high-quality cotton, polyester, and blended fabrics. Indian importers frequently source HS Code 5208 (cotton woven fabrics), HS Code 6004 (knitted fabrics), and ready-made garments under HS Code 6109 (t-shirts) and HS Code 6203 (men's suits). Duty rates under AIFTA range from 0-5% for most textile categories, compared to MFN rates of 10-15%.
Electronics and Electrical Components
Vietnam's electronics manufacturing sector, dominated by Samsung and Intel operations, produces smartphones, computer components, and consumer electronics. Key import categories include HS Code 8517 (telephone equipment), HS Code 8541 (semiconductor devices), and HS Code 8528 (monitors and displays). These products enter India at concessional rates of 0-2.5% under the trade agreement.
Coffee and Agricultural Products
As the world's second-largest coffee exporter, Vietnam supplies robusta coffee beans (HS Code 0901) at highly competitive prices. Other agricultural imports include cashew nuts (HS Code 0801), black pepper (HS Code 0904), and seafood products (HS Code 0303-0307). Import duties on these products typically range from 0-10% depending on the specific commodity code.
Footwear and Leather Goods
Vietnamese footwear manufacturing combines traditional craftsmanship with modern production techniques. Popular imports include HS Code 6403 (leather footwear), HS Code 6404 (rubber/plastic footwear), and leather accessories under HS Code 4202. The sector offers margins of 20-30% for Indian retailers after accounting for shipping and customs costs.
Machinery and Industrial Equipment
Vietnam produces specialized agricultural machinery, packaging equipment, and precision tools suitable for Indian SMEs. Key categories include HS Code 8432 (agricultural machinery), HS Code 8479 (machinery for public works), and HS Code 8483 (transmission shafts and bearings).
Understanding HS Codes and Duty Rates
Proper classification under the Harmonized System (HS) Nomenclature determines your applicable duty rates and regulatory requirements. The ASEAN-India FTA requires certificates of origin (Form AI) to claim preferential rates. Without this documentation, imports default to Most Favored Nation (MFN) rates, which can increase costs by 10-20%.
For example, while Vietnamese textiles enter at 0-5% under AIFTA, the standard MFN rate might be 12.5%. Similarly, electronics components that qualify under the agreement enter duty-free, whereas standard rates might apply 7.5% basic customs duty plus applicable IGST.
Always verify current rates through the Directorate General of Foreign Trade (DGFT) notification database, as India periodically updates its tariff schedule through annual budget announcements and mid-year policy revisions.
Bill of Entry: Filed electronically through ICEGATE
Certificate of Origin (Form AI): Required for AIFTA benefits
Commercial Invoice and Packing List: Must detail HS codes and country of origin
Bill of Lading/Airway Bill: Evidence of shipment contract
Import Export Code (IEC): Mandatory registration with DGFT
GST Registration: Required for claiming input tax credits
Additionally, certain products require BIS certification (electronics), FSSAI clearance (food products), or APEDA registration (agricultural commodities). Pre-shipment inspection certificates may be required for specific HS codes to prevent pest contamination or quality discrepancies.
Frequently Asked Questions
What are the most profitable products to import from Vietnam to India?
Textiles, coffee beans, and electronics components currently offer the highest profit margins for Indian importers, typically ranging between 18-30% after all landed costs. Agricultural products like pepper and cashews also provide strong returns due to Vietnam's production scale advantages.
Do I need a special license to import from Vietnam?
No specific Vietnam-specific license is required beyond standard Indian import regulations. However, you must obtain an Import Export Code (IEC) from DGFT and register for GST. Specific products may require additional certifications (BIS, FSSAI, etc.) regardless of the source country.
How long does shipping take from Vietnam to India?
Sea freight from Ho Chi Minh City or Haiphong to Chennai/Mumbai typically takes 8-12 days. Air freight reduces this to 2-3 days but increases costs significantly. Factor in 3-5 additional days for customs clearance and inland transportation to your warehouse.
What payment terms are standard for Vietnamese suppliers?
Most Vietnamese exporters require 30% advance payment with 70% against Bill of Lading (BL). Letter of Credit (LC) arrangements are common for transactions exceeding $50,000. Always verify supplier credentials through the Vietnam Chamber of Commerce and Industry (VCCI) before transferring funds.
Are there any import restrictions on Vietnamese goods?
While most products enter freely under AIFTA, India maintains restrictions on certain agricultural commodities to protect domestic farmers. Check the latest Foreign Trade Policy notification on the Ministry of Commerce website for current prohibited/restricted items lists.
Conclusion
Identifying the best products to import from Vietnam to India requires balancing market demand, regulatory compliance, and supply chain logistics. By focusing on Vietnam's manufacturing strengths—textiles, electronics, coffee, and footwear—Indian traders can build sustainable import businesses leveraging the ASEAN-India Free Trade Agreement benefits. Success depends on proper HS code classification, maintaining valid certificates of origin, and understanding India's customs documentation requirements. With bilateral trade relations strengthening and infrastructure connectivity improving through initiatives like the India-ASEAN Maritime Transport Agreement, now represents an optimal time to establish Vietnamese sourcing channels for your business.
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