The study also found that Indian exporters could boost trade with Vietnam by an estimated US$475 million, bringing the bilateral trade opportunity to US$1.1 billion.

The ASEAN markets in the study (Indonesia, Malaysia, Singapore, Thailand and Vietnam) have a combined opportunity of US$10.7 billion to increase exports to India.

The research tracks high potential exports, defined as goods or services where businesses have added value with the borders of their home market. As markets look to recover from the impact of COVID-19, the study champions global trade as a key lever of prosperity, highlighting the sectors with the greatest opportunities for growth.

Vietnam’s wholesale and retail trade services sector has the most to gain, with an US$87 million opportunity.

India is now one of Vietnam’s top 10 trading partners, and Vietnam ranks India’s fourth-largest ASEAN trading partner. With the shifts in supply chains post COVID-19, the India-Vietnam trade route could become increasingly important for international businesses.

Other Vietnamese sectors with significant opportunities in India are transportation and storage services; cotton (including sewing thread, yarn and fabric); office admin and other business support services and knitted clothing.

Nirukt Sapru, Chief Executive Officer, Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered, said Vietnamese and Indian efforts to grow trade between the two markets have clearly been working, with bilateral trade growing at the steepest rate ever recorded.

"As Vietnam plays an increasingly important role in global supply chains, its relationship with India is likely to strengthen further – especially with India investing close to US$2 billion in over 200 projects in Vietnam. As this study shows, India presents many opportunities for Vietnamese companies seeking new and fruitful avenues for growth,” he said.

The study estimates that India could increase high-potential exports to Vietnam by US$475 million annually, or 12%.

The Standard Chartered Trade Opportunity Report identifies opportunities at a sectoral level, across both goods and services, between India and 10 of its key trading partners. The study contrasts actual export values with potential export values – calculated by an economic model – to uncover medium-term opportunities, looking to a post-COVID-19 world as economies begin to reopen.

Overall, the study reveals opportunities totalling an estimated US$38 billion annually: a US$21 billion opportunity for the 10 markets to increase exports to India, and a US$17 billion opportunity for India to increase exports in the other direction.