To boost air cargo volumes between Vietnam and India, businesses of both countries should strengthen partnerships between the airlines and freight forwarders to create direct and frequent cargo flights, says Đào Trong Khoa, President, VLA.
CT Bureau
How important are events like the RAP meeting for the global stakeholders to meet, greet, network, and collaborate with each other?
In the context of global economic instability—ranging from inflation, supply chain disruptions, to trade protectionism and complex tariff changes between the USA and China—events like the FIATA RAP Field Meeting are becoming essential.
They provide opportunities for stakeholders in the logistics industry to meet, exchange views, and stay updated on global trends and serve as a platform to build trust, strengthen cross-border cooperation, and jointly find solutions to emerging challenges. Face-to-face interactions at such events help “soften” economic tensions through dialogue, business networking, and by promoting greater connectivity across regional and global supply chains—a significant factor in today’s unpredictable world.
How would you describe the air cargo trade between Vietnam and India?
As per Vietnam Customs data, bilateral trade between Vietnam and India reached US$ 15 billion in 2024, up 4.5 per cent from 2023. In exports, phones and components led with US$ 1.68 billion (up 4.5 per cent, accounting for 17.5 per cent of total exports), followed by computers, electronic products, and components at US$ 1.5 billion (15.6 per cent) and machinery and parts at US$ 947 million (9.8 per cent). This reflects steady demand from India for Vietnam’s industrial goods. Several Vietnamese export sectors posted growth in 2024, such as tea (up 18.7 per cent), wood and wood products (18 per cent), seafood (12 per cent), rattan/bamboo/straw products and carpets (11 per cent), plastic products (10.4 per cent), textiles and garments (9.5 per cent), chemicals and chemical products (9.5 per cent), and cereals, rubber products, and fibres (10 to 11 per cent).
India remains a supplier of raw materials and finished goods to Vietnam, including steel, chemicals, pharma, textiles, and animal/seafood feed. Air cargo between Vietnam and India is on a growth trajectory, though not yet optimised. Pharmaceuticals, electronic components, medical tools, high-end garments, and seafood are sectors, which utilise air freight. Vietnam is a hub for electronics manufacturing, while India is a pharmaceutical centre. The recent launch of direct flight routes is promising.
How do you assess cargo infrastructure in Vietnam, especally at Tan Son Nhat International and Noi Bai International?
Infrastructure at Vietnam’s two major airports—Tan Son Nhat (Ho Chi Minh City) and Noi Bai (Hanoi)—is under pressure, particularly Ho Chi Minh City. While both airports have set up cargo logistics centres, current capacity and warehouse space remain limited compared to demand. The government is pushing forward with development of Long Thanh International Airport, envisioned as a new global air logistics hub capable of handling up to 5 million tonnes of cargo annually. Noi Bai’s cargo terminal is being expanded.
Given infrastructure limitations, we believe investment in technology, SCM, and intermodal connectivity will enhance the efficiency and effectiveness of Vietnam’s air cargo operations.
Today, the world seeks to ship to India. Do you look at India as a potential trade and investment destination?
India is emerging as a new global manufacturing hub, supported by its large population, expanding middle class, and the Make in India initiative to promote domestic production and attract foreign investment. Vietnam Logistics Business Association (VLA) values the trade and investment potential with India, given the long-standing friendship between the two nations.
Vietnam and India set up diplomatic ties in 1972 and elevated ties to a Comprehensive Strategic Partnership nine years ago. India is now one of Vietnam’s top eight trading partners and its largest trading partner in Southasia, accounting for 80 per cent of Vietnam’s exports to the region. Vietnam ranks as India’s 17th largest intyernational trading partner and fourth largest within ASEAN.
India’s geographical location makes it a gateway for Vietnamese goods to access Southasian markets and Vietnam is seen as a gateway for Indian goods into ASEAN and Vietnam’s trade partner countries.
The nature of the two nations’ trade structures is a major factor behind the rapid and positive development of Vietnam–India economic ties. These are the very reasons why VLA was approved by Vietnam’s Ministry of Industry and Trade to organise a National Trade Promotion Programme in India in May 2025—a key mission to participate in the FIATA RAP meet.
Are Vietnamese air cargo and logistics companies investing in smart logistics and ArtificialIntelligence to streamline operations?
Digitalisation and application of AI are inevitable trends in air freight, essential for improving efficiency, reducing costs, and enhancing accuracy. In Vietnam, several leading logistics firms have started investing in smart management systems (TMS/WMS), real-time cargo tracking using IoT, and AI to forecast demand or optimise routing. About 70 per cent of VLA’s member firms have applied digital or Industry 4.0 technologies to varying degrees. These applications remain scattered and are not yet synchronised across all stages of the supply chain. Vietnam is promoting a National Digital Transformation Strategy for logistics sector through 2030, with a vision to 2045.
How are logistics firms in Vietnam balancing the demand for fast, efficient transport with environmental sustainability goals?
Logistics firms balance speed with sustainability. Initiatives include investing in electric vehicle fleets, using recycled packaging and optimising delivery routes to reduce emissions. Participation in green initiatives such as Carbon Border Adjustment Mechanism or compliance with ESG standards is promoting firms to adopt sustainable logistics practices.
How does Vietnam view itself as logistics hub in Southeast Asia in relation to trade with India?
Vietnam is positioning itself as a key logistics hub in Southeast Asia, thanks to its strategic location. The Vietnamese government has approved a plan to develop the national logistics system. It is investing in deep-sea transshipment ports, airports, and interregional economic corridors. With relation to the country, Vietnam is promoting collaboration within frameworks such as the India-Association South Eastern Nations (ASEAN) Economic Corridor and initiatives such as the East-West Economic Corridor, which links Vietnam with Laos, Myanmar, and Thailand.
How can Indian and Vietnamese logistics companies collaborate to grow air cargo volumes?
To boost the air cargo volumes between Vietnam and India, businesses of both countries should strengthen partnerships between the airlines and freight forwarders to create direct and frequent cargo flights. There is a need to develop shared logistics infrastructure such as bonded warehouses and cargo consolidation hubs. Collaboration on digital platforms to facilitate cargo tracking and customs clearance. Encouraging trade in high-value and time-sensitive goods. Leverage trade promotion programmes and business matching events, such as the FIATA RAP Field Meet 2025 organised in New Delhi, to deepen relations and explore new logistics opportunities.
