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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.
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)
Vietnam
imports
BIS certification
Bureau of Indian Standards
Indian government
India-Vietnam bilateral trade
free trade agreement
Chinese steel
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