+

Vietnamese steel, shoes & other imports get stuck in India’s quality check

  • Industry News
  • Jun 03,24
India's increasing focus on the quality of imports also works as a non-tariff barrier to restrict the inflow of cheap and substandard quality products.
Vietnamese steel, shoes & other imports get stuck in India’s quality check

In recent times, more than two dozen Vietnamese companies have been grappling with a significant hurdle in their business operations in India: the Bureau of Indian Standards (BIS) certification. This certification, mandated by the Indian government for certain imported goods, has become a bottleneck for Vietnamese companies seeking to penetrate the Indian market.

According to sources familiar with the matter, the Vietnamese trade ministry has reached out to New Delhi multiple times, urging for the expediting of BIS certification for 26 companies. These delays have been particularly detrimental to businesses engaged in the trade of shoes and steel, two prominent sectors where Vietnamese companies have a significant presence.

The issue of BIS certification arises amidst growing concerns among Indian manufacturers, especially steelmakers, regarding the increasing influx of imports from Vietnam. The Indian government's heightened focus on the quality of imports, exemplified by the implementation of Quality Control Orders (QCOs), serves as a non-tariff barrier aimed at curbing the inflow of cheap and substandard products.

Vietnam, being a major global supplier and a member of India's free trade agreement with ASEAN countries, finds itself at odds with these quality control measures. The delays in BIS certification highlights the challenges faced by Vietnamese companies in navigating India's modern regulatory landscape and accessing its lucrative market.

The bilateral trade between India and Vietnam has witnessed a significant growth, reaching $14.70 billion in 2022-23. However, the imbalance in trade, with Vietnam exporting more goods to India than vice versa, has prompted the Indian government to scrutinise imports more closely.

While the Indian government has sought explanations from the Bureau of Indian Standards regarding the delays in certification, the situation remains unresolved. The affected Vietnamese companies, primarily involved in steel, footwear, and other sectors, continue to await clarity on their certification status.

The implications of these delays extend beyond trade relations, impacting the competitiveness of Vietnamese products in the Indian market and potentially straining diplomatic ties between the two nations. As India remains steadfast in its commitment to bolster domestic production and ensure quality standards, Vietnamese imports find themselves caught in the crosshairs of regulatory scrutiny and protectionist measures.

Vietnamese imports are essential for fostering mutually beneficial trade relations between India and Vietnam. It requires proactive engagement and cooperation between the governments of both countries to streamline the certification process and facilitate smoother trade flows in the future.

(Source: Live Mint)

Related Stories

Policy Regulation
US tariff: India working on export promotion mission for targeted sectors

US tariff: India working on export promotion mission for targeted sectors

The mission will roll out tailor-made schemes for the worst-hit sectors — textiles and chemicals — featuring export incentives, easier access to credit, and faster operational clearances, says K..

Read more
Material Handling Equipment
Can India Match Vietnam’s Maritime Success Without Financial Reform?

Can India Match Vietnam’s Maritime Success Without Financial Reform?

While India has announced major initiatives to boost its maritime sector, many challenges continue to stall growth and innovation in shipbuilding. This article explores Vietnam’s financing model a..

Read more
Electrical & Electronics
Will solar manufacturing glow in India as renewable energy demand surges?

Will solar manufacturing glow in India as renewable energy demand surges?

While India has successfully increased domestic solar module production, import of solar cells remains high. As India plans to add 60-65 GW of solar capacity, will it be a sunshine moment for solar ..

Read more

Related Products

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016