balance of payment between vietnam and india

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF TRADE AND INTERNATIONAL ECONOMICS INTERNATIONAL ECONOMICS ASSIGNMENT Topic: Balance of Payments between Vietnam and India ******* Student’s full name : Ho Minh Chau Student ID : 11190764 Major : International Economics Class : International Economics EEP 61A Instructor : Assoc Prof Dr Nguyen Thuong Lang Hanoi, 8/2020 International Economics Instructor: Assoc Prof Dr Nguyen Thuong Lang STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Assignment independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper Ha Noi, 22/08/2021 Ho Minh Chau ACKNOWLEDGEMENTS The first words, I would like to express my deep thanks to the lecturers of the National University of Economics in general and the lecturers of the School of Trade and International Economics in particular for their dedication to teaching and imparting to us valuable knowledge and experience In particular, I would like to thank Assoc Prof Dr Nguyen Thuong Lang, who directly guided me throughout the gift of doing the exercise During the time of working with him, I have constantly learned a lot of useful knowledge for me but also learned the spirit of serious and effective work, these are very necessary for me in the process of studying and working later Finally, I would like to sincerely thank my family and friends who have always encouraged, contributed ideas and helped in the process of learning and research to complete this exercise Ha Noi, 22/08/2021 Ho Minh Chau Student: Ho Minh Chau Class: International Economics EEP 61A TABLE OF CONTENT INTRODUCTION 1 Rationale: Literature Review: Objective: Methodology: Scope: Research structure: Chapter 1: Balance of Payments (BoP) 1.1 Definition of BoP: 1.2 Components of BoP: 1.2.1 Current Account: 1.2.2 Capital Account: 1.2.3 Financial Account: 1.3 Effects of BoP on National account: .4 Chapter 2: Vietnam – India Relations 2.1 Background: 2.2 Bilateral trade relations: Chapter 3: Balance of Payments between Vietnam and India 3.1 Balance of International Payments in Vietnam and in India in 2020: .9 3.1.1 Balance of International Payments in Viet Nam: 3.1.2 Balance of International Payments in India: 13 3.2 Trade between Vietnam and India: 17 3.2.1 Vietnam exports to India: .17 3.2.2 Vietnam imports from India: 18 3.3 Foreign Direct Investment (FDI): 20 3.3.1 India’s Investments in Vietnam 20 3.3.2 Vietnam’s Investments in India: .21 3.4 Balance of Payments between Vietnam and India: .21 Chapter 4: Solution 22 LIST OF REFERENCES 23 Student: Ho Minh Chau Class: International Economics EEP 61A ABBREVIATIONS ABBREVIATION ASEAN BOP BOT FDI IMF IT MGC QIPs FULL MEANING Association of South East Asian Nations Balance of Payments Balance of Trade Foreign Direct Investment International Monetary Fund Information Technology Mekong Ganga Cooperation Quick Impact Projects LIST OF TABLE Table Name of Table Differences between BoP Surplus and BoP Deficit Balance of International Payment in Vietnam in I/2021 Balance of International Payment in Viet Nam from II/2020 to I/2021 Balance of Payments India in I/2021 Balance of International Payments in India from II/2020 to I/2021 Some major exported goods from Vietnam to India in 2020 Some major imported goods from India to Vietnam in 2020 Balance of Payments between Vietnam and India in 2020 Page 10 12 13 16 18 19 20 LIST OF FIGURES Figure Name of Figure India’s Trade with Vietnam Balance of International Payments in Viet Nam from II/2020 to I/2021 Balance of Payments in India from 2012 to 2020 Vietnam exports to India from 2011 to 2020 Vietnam imports from India in the period 2011 - 2020 Student: Ho Minh Chau Page 13 17 19 Class: International Economics EEP 61A INTRODUCTION Rationale: The balance of payments is a crucial part of the national economy The balance of international payments is an extremely important indicator for each country because a country's balance of international payments represents its financial and economic status The balance of payments statement can be used as a statistical document to determine whether the value of a country's currency is increasing or decreasing Based on the balance of payments index, the government of each country can make the most optimal trade and fiscal policy decisions Balance of payments provides important information for analyzing and understanding a country's economic transactions with other countries The balance of payments report shows us a comparison between the actual money received from abroad with the money actually spent abroad in a given period of time The government makes decisions on macroeconomic management such as import-export policy, exchange rate policy, etc By studying the balance of international payments and its components, one will be able to identify trends that can be beneficial or harmful to a country's economy From there, come up with appropriate solutions and strategies In the current context of international economic integration, Vietnam has been promoting diplomatic relations, especially trade relations with countries in the region India is one of important partners As a result, the topic “Balance of Payments between Vietnam and India” has been chosen Literature Review: “Vietnam – India: Increasing Investment and Trade relations”: Vietnam and India have shared strong bilateral relations historically, and for the past two decades, trade between the two countries has risen considerably These economic ties have materialized into several Indian investments in Vietnam in various sectors India, which is one of the fastest-growing economies in the world, currently ranks fifth globally in terms of GDP The ASEAN-India Free Trade Area (AIFTA), which Vietnam is a part of, was established in 2009 as a result of convergence in interests of all parties in advancing their economic ties across the Asia-Pacific “Vietnam – India bilateral trade”: According to data of the General Department of Customs, bilateral trade between Vietnam and India in the first 11 months of the year reached $8.82 billion, down 14.45% over the same period last year, of which, exports from Vietnam reached 4.76 billion Student: Ho Minh Chau Class: International Economics EEP 61A USD and import reached 4.06 billion USD, Vietnam had a trade surplus of 700 million USD With India's application of many trade-restrictive measures, changes in regulations on considering the origin of goods, along with the initiation of investigations into trade remedies such as antidumping, anti-subsidy, etc level has had a significant effect on bilateral trade Objective: On the basis of the actual analysis of the international balance of payments of Vietnam and India, assessing the results as well as limitations of the balance of payments between Vietnam and India, thereby proposing orientations and solutions to solve the problems of the balance of payments deficit Methodology: The assignment uses analytical, aggregated, and comparative methods to solve the problem posed Data collected from State Bank of Vietnam, Reserve Bank of India, the General Statistical Office, the IMF and related agencies Scope: 5.1 Object: The Balance of Payments 5.2 Scope: The Balance of Payments between Vietnam and India from 2011 to 2020 and in financial year 2020 Research structure: In addition to the opening, ending, list of contents and list of references, topics are presented in chapters: Chapter 1: Balance of Payments in general Chapter 2: Relationship between Vietnam and India Chapter 3: The Balance of Payments between Vietnam and India Chapter 4: Solutions for the Balance of Payments Deficit Student: Ho Minh Chau Class: International Economics EEP 61A Chapter 1: Balance of Payments (BoP) 1.1 Definition of BoP: Balance of Payments (BOP) is a statement which records all the monetary transactions made between residents of a country and the rest of the world during any given period This statement includes all the transactions made by/to individuals, corporates and the government and helps in monitoring the flow of funds to develop the economy When all the elements are correctly included in the BOP, it should sum up to zero in a perfect scenario This means the inflows and outflows of funds should balance out However, this does not ideally happen in most cases Tracking the transactions under BOP is something similar to the double entry system of accounting This means, all the transactions will have a debit entry and a corresponding credit entry 1.2 Components of BoP: There are three components of balance of payment such as current account, capital account, and financial account 1.2.1 Current Account: The current account includes transactions in goods, services, investment income, and current transfers The current account is used to monitor the inflow and outflow of goods and services between countries This account covers all the receipts and payments made with respect to raw materials and manufactured goods It also includes receipts from engineering, tourism, transportation, business services, stocks, and royalties from patents and copyrights When all the goods and services are combined, together they make up to a country’s Balance of Trade (BOT) There are various categories of trade and transfers which happen across countries It could be visible or invisible trading, unilateral transfers or other payments/receipts Trading in goods between countries are referred to as visible items and import/export of services (banking, information technology, …) are referred to as invisible items Student: Ho Minh Chau Class: International Economics EEP 61A Unilateral transfers refer to money sent as gifts or donations to residents of foreign countries This can also be personal transfers like – money sent by relatives to their family located in another country 1.2.2 Capital Account: The capital account consists of capital transfers and the acquisition and disposal of nonproduced, non-financial assets Capital transfers include debt forgiveness and migrants’ transfers (goods and financial assets accompanying migrants as they leave or enter the country) In addition, capital transfers include the transfer of title to fixed assets and the transfer of funds linked to the sale or acquisition of fixed assets, gift and inheritance taxes, death duties, uninsured damage to fixed assets and legacies Acquisition and disposal of non-produced, non-financial assets represent the sales and purchases of non-produced assets, such as the rights to natural resources, and the sales and purchases of intangible assets, such as patents, copyrights, trademarks, franchises and leases There are major elements of a capital account:  Loans and borrowings – It includes all types of loans from both the private and public sectors located in foreign countries  Investments – These are funds invested in the corporate stocks by non-residents  Foreign exchange reserves – Foreign exchange reserves held by the central bank of a country to monitor and control the exchange rate does impact the capital account 1.2.3 Financial Account: The financial account measures the changes in the foreign ownership of domestic assets and domestic ownership of foreign assets The flow of funds from and to foreign countries through various investments in real estates, business ventures, foreign direct investments, … is monitored through the financial account 1.3 Effects of BoP on National account: A balance of payments surplus means the country exports more than it imports It provides enough capital to pay for all domestic production The country might even lend outside its borders A surplus boosts economic growth in the short term There are enough excess savings to lend to countries that buy its products The increased exports boost production in its factories, Student: Ho Minh Chau Class: International Economics EEP 61A allowing them to hire more people In the long run, the country becomes too dependent on exportdriven growth It must encourage its residents to spend more A balance of payments deficit means the country imports more goods, services, and capital than they export It must borrow from other countries to pay for its imports It's like taking out a school loan to pay for education Your expected higher future salary is worth the investment In the long-term, the country becomes a net consumer, not a producer, of the world's economic output It will have to go into debt to pay for consumption instead of investing in future growth If the deficit continues long enough, the country may have to sell its assets to pay its creditors These assets include natural resources, land, and commodities Table Differences between BoP Surplus and BoP Deficit Balance of Payments Surplus  Export more than Import Balance of Payments Deficit  Import more than export  Providing enough capital to pay for all  Borrowing from other countries to pay domestic production  Boosting economic growth in the short for imports  This fuels economic growth in the short term  Becoming too dependent on export term  It will have to go into debt to pay for -driven growth in the long run consumption (Source: Thebalance.com) Student: Ho Minh Chau Class: International Economics EEP 61A Chapter 2: Vietnam – India Relations 2.1 Background: Vietnam and India have a long-standing relationship, when Buddhism and Hinduism were introduced to Vietnam The traditional friendship and multifaceted cooperation between the two countries, laid the foundation by President Ho Chi Minh and Prime Minister G Nero, has developed continuously In 1954, India opened its Consulate General in Hanoi In 1956, Vietnam established a Consulate General in New Delhi On January 7, 1972, the two countries elevated their relations to Ambassador level In 2007, the two sides officially announced the establishment of a strategic partnership and was upgraded to a comprehensive strategic partnership on the occasion of Prime Minister Narendra Modi's official visit to Vietnam in September 2016 An important framework for deepening and more stable development of relations between the two countries, meeting the requirements of the new situation Vietnam - India relations are at a good and favorable time of development; cooperation in all fields, such as politics, diplomacy, economy, trade, national defense, security, energy, culture, education, science - technology, people's diplomacy increase The political relationship between the two countries is increasingly trusting and close, as shown by the frequent exchange of highlevel and high-level delegations between the two sides; The relationship between the Communist Party of Vietnam and political parties of India is also expanding The friendship and solidarity between the two countries and two peoples has always been stable, steadfast and developed more and more deeply The two sides identified the common goal of developing cooperation for the prosperity of each country and contributing to regional and international peace and development Vietnam and India cooperate closely, have mutual trust, understanding and support in many regional and international issues; good cooperation at multilateral forums The Vietnamese people always remember the love and support and assistance of the Indian people in the past cause of national liberation and in the present national construction and development; expect the two sides to maintain a positive development momentum, strengthen the implementation of bilateral cooperation mechanisms; strive to deepen economic cooperation and Student: Ho Minh Chau Class: International Economics EEP 61A Portfolio Investment(net) -346 Other Investment: Assets -342 Money and deposits -370 Banks 153 Other sectors -523 Loans Trade credit and advances Other accounts receivable/payable Other Investment: Liabilities 28 2.742 Currency and deposits 1.643 Banks 1.643 Other sectors Loans 1.099 Short-term 829 Disbursements 7.018 Scheduled Amortization -6.189 Medium and long term Disbursements 270 2.751 Government 449 Other sectors 2.302 Scheduled Amortization -2.481 Government -580 Other sectors -1.901 Trade credit and advances Other accounts receivable/payable Other Investment (net) D Net Errors and Omissions 2.400 -2.198 11 Student: Ho Minh Chau Class: International Economics EEP 61A E Overall balance 3.436 F Reserve and related items -3.436 Reserve assets -3.436 Credit and loans from IMF Exceptional financing (Source: State Bank of Vietnam) Table Balance of International Payment in Viet Nam from II/2020 to I/2021 Account II/2020 III/2020 IV/2020 I/2021 Current Account, net - 506 + 8276 + 1698 + 350 Capital Account, net 0 0 Financial Account, net + 265 + 1267 + 5297 + 5284 Net Errors and Omissions + 2246 - 4285 - 743 - 2189 Overall Balance + 2005 + 5259 + 6252 + 3436 Reserve and related items - 2005 - 5259 - 6252 - 3436 (Source: Data from State Bank of Vietnam) 3.1.2 Balance of International Payments in India: The current account deficit, along with the increase in foreign exchange reserves, reflects a balance of payments surplus, i.e the size of net capital flows exceeds the current account deficit In 2020-2021, India's balance of payments recorded surpluses in both current and capital accounts, which contributed to an increase in foreign exchange reserves for the year Besides the export and import of goods and services, the overall stability of the external sector depends on other components of the balance of payments including remittances (transfers), 12 Student: Ho Minh Chau Class: International Economics EEP 61A income in current accounts, the size of net capital flows and foreign debt India felt safer in most indicators of the sensitivity of the outer region Generally, a current account surplus is a piece of welcome news; however, in the current scenario, it is a major worry for the Indian economy as it reflects a drop in economic activity Given that the imports collapsed more than the exports and overall trade balance (services and goods) posted a surplus in the month of April and May, the current account will likely remain in surplus in the June quarter Figure Balance of Payments in India from 2012 to 2020 Table Balance of Payments India in I/2021 (Millions of USD) Credit Debit Net 173,382 181,543 -8,161 I MERCHANDISE 91,281 133,025 -41,745 II INVISIBLES 82,101 48,518 33,583 a) Services 56,004 32,520 23,485 i) Travel 2,308 3,141 -834 ii) Transportation 6,080 5,633 446 iii) Insurance 647 566 82 iv) G.n.i.e 159 241 -82 46,811 22,938 23,873 A CURRENT ACCOUNT v) Miscellaneous 13 Student: Ho Minh Chau Class: International Economics EEP 61A Of which : Software Services 26,802 3,327 23,475 Business Services 13,324 12,847 478 Financial Services 1,258 1,402 -145 696 399 297 b) Transfers 20,927 2,085 18,842 i) Official 18 285 -267 ii) Private 20,909 1,801 19,108 5,170 13,913 -8,743 i) Investment Income 3,517 13,192 -9,675 ii) Compensation of Employees 1,653 721 932 B CAPITAL ACCOUNT 162,690 150,429 12,261 Foreign Investment 108,195 98,236 9,959 15,393 12,714 2,679 i In India 13,679 7,928 5,750 Equity 8,553 7,894 659 Reinvested Earnings 4,519 Communication Services c) Income a) Foreign Direct Investment Other Capital 4,519 607 34 573 ii Abroad 1,714 4,786 -3,072 Equity 1,714 1,197 517 Reinvested Earnings 753 -753 Other Capital 2,835 -2,835 92,802 85,522 7,280 In India 92,500 84,310 8,190 FIIs 92,500 84,310 8,190 Equity 81,440 73,679 7,761 Debt 11,059 10,631 428 0 303 1,212 -909 26,446 18,725 7,721 b) Portfolio Investment ADRs/GDRs Abroad 2.Loans 14 Student: Ho Minh Chau Class: International Economics EEP 61A a) External Assistance 5,380 1,387 3,993 i) By India 10 21 -11 ii) To India 5,370 1,366 4,004 11,834 5,759 6,075 i) By India 683 745 -63 ii) To India 11,152 5,014 6,138 9,232 11,578 -2,346 i) Buyers' credit & Suppliers' Credit >180 days 8,067 11,578 -3,511 ii) Suppliers' credit up to 180 days 1,165 1,165 16,733 21,158 -4,425 16,518 21,158 -4,640 i) Assets 4,141 7,973 -3,832 ii) Liabilities 12,377 13,185 -808 of which: Non-Resident Deposits 11,350 11,889 -539 215 215 -7 12,302 -987 711 -711 336,072 332,683 3,389 3,389 -3,389 i) I.M.F 0 ii) Foreign Exchange Reserves 3,389 -3,389 b) Commercial Borrowings(MT<) c) Short Term To India Banking Capital a) Commercial Banks b) Others Rupee Debt Service Other Capital 11,315 C Errors & Omissions D Overall Balance E Monetary Movements (Source: Reserve Bank of India) Table Balance of International Payments in India from II/2020 to I/2021 15 Student: Ho Minh Chau Class: International Economics EEP 61A (Source: Data from Reserve Bank of India)  India's current balance deficit is due to the severe impact of Covid-19, which has a strong impact on the country's economic character 3.2 Trade between Vietnam and India: 3.2.1 Vietnam exports to India: Vietnam exports to India was US$5.23 Billion (US$5230 Million) during 2020, according to the United Nations COMTRADE database on international trade Figure Vietnam exports to India from 2011 to 2020 According to data from the General Department of Customs of Vietnam, bilateral trade between Vietnam and India had a positive growth in the first three months of 2021, reaching $3.3 16 Student: Ho Minh Chau Class: International Economics EEP 61A billion, up 34.1% over the same period last year In which, exports reached 1.71 billion USD, up 22.2% over the same period in 2020 Some industries have strong increase in export turnover such as tea export up 693.8%; coal exports increased by 256.5%; export of plastic raw materials increased by 195%; export of iron and steel of all kinds increased by 186%; exports of handicrafts - bamboo and rattan, sedge mats together increased by 103.5% The export industries with large turnover recorded cumulative growth, in which, the export of mobile phones and components reached $441.35 million, up 16%; exports of computers, electronic products and components reached $227.53 million, up 14.2%; exports of common metals and products reached US$161.32 million, up 37% over the same period Due to the impact of Covid-19, by the end of 2020, Vietnam's exports of goods and services decreased by 68.4% (US$63 million) Table Some major exported goods from Vietnam to India in 2020 (Source: tradingeconomics.com) In 2020, Four items of Vietnam's exports to India with turnover growth rate of over 100% compared to the previous month are: iron and steel products increased by 371%; iron and steel of all kinds increased by 222%; coffee increased by 134%; cashew nuts increased by 117% Computers, electronic products and components are the main export groups of our country, with a turnover of more than 77.7 million USD 17 Student: Ho Minh Chau Class: International Economics EEP 61A 3.2.2 Vietnam imports from India: Vietnam imports from India was US$4.43 Billion (US$4430 Million) during 2020, according to the United Nations COMTRADE database on international trade Figure Vietnam imports from India in the period 2011 - 2020 Notably, imports of animal feed and raw materials and corn had a sudden growth, the total import turnover of these two items reached USD 247.85 million in the first quarter, an increase of more than 10 times over the same period last year previously only reached 23.5 million USD; Maize imports reached 115.86 Private million in months, an increase of 58 925%; reached its highest level ever, imported animal feed reached 131.99 million, up 466% The two products have become the product groups with the largest imports from India Some other items import large growth including fertilizer imports increased 288%; imports of common metals increased by 143%; cotton imports of all kinds increased by 128%; import of vegetables and fruits increased by 92% If we continue to maintain the current growth momentum, bilateral trade between the two countries will reach more than $ 13 billion this year 18 Student: Ho Minh Chau Class: International Economics EEP 61A The main groups of imported goods of our country from India, with a turnover of over 20 million USD, are: iron and steel of all kinds; auto components and spare parts; other machinery, equipment, tools and spare parts; cotton of all kinds; medicine Table Some major imported goods from India to Vietnam in 2020 (Source: tradingeconomics.com) CBU cars of all kinds are the import items with the strongest increase in turnover, specifically an increase of 1666% compared to November Due to the impact of Covid-19, by the end of 2020, Vietnam's exports of goods and services decreased by 14.5% (US$ 183 million)  In 2020, our country's export value to the Indian market will reach 5.23 billion USD and import 4.43 billion USD Thereby, the trade balance has a surplus of 800 million USD In addition, Vietnam became a trade deficit in services (US$120 million) with India 3.3 Foreign Direct Investment (FDI): 19 Student: Ho Minh Chau Class: International Economics EEP 61A 3.3.1 India’s Investments in Vietnam India’s investments in Vietnam are estimated at around US$ 1.9 billion including investments routed through third countries According to Vietnam’s Foreign Investment Agency, India has injected investment capital into Vietnam with 296 projects (total capital of 887.21 million USD) until 2020 and total FDI to Vietnam is 30.781 million USD in 2020, ranking 26th among countries and territories investing in Vietnam Major sectors of Indian investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components 3.3.2 Vietnam’s Investments in India: As of 2020, Vietnam has six investment projects in India with total estimated investment of US$ 28.55 million, primarily in the areas of pharmaceuticals, information technology, chemicals and building materials 3.4 Balance of Payments between Vietnam and India: Table Balance of Payments between Vietnam and India in 2020 (Recorded in Vietnam) (Millions of USD) Credit/debit Account Credit Debit A Current Account Exported goods + 5230 Imported goods Export: Services - 4430 +63 20 Student: Ho Minh Chau Class: International Economics EEP 61A Import: Services Unilateral transfers: receipt (7 grant-in-aid assistance projects for the benefit of the Cham community) -183 +1.54 Unilateral transfers made (Covid-19-aid) -0.43 B Capital Account/ Financial Account FDI to Vietnam +30.781 FDI to India Total credits and debits -28.55 +5325,321 C Overall Balance -4641.98 +683,341  Balance of Payments Surplus in Vietnam; Balance of Payments Deficit in India Chapter 4: Solutions Expenditure-Reducing Policies: A deficit in the balance of payments implies an excess of expenditure over income To correct it, expenditure and income should be brought into equality For this expenditure reducing monetary and fiscal policies are used A contractionary or tight monetary policy relates to increase in interest rates to reduce money supply and a contractionary fiscal policy relates to reduction in government expenditure and or increase in taxes 21 Student: Ho Minh Chau Class: International Economics EEP 61A Thus expenditure reducing policies reduce aggregate demand through higher taxes and interest rates, thereby reducing expenditure and output The reduction in expenditure and output, in turn, reduces the domestic price level This gives rise to switching of expenditure from foreign to domestic goods Consequently, the country’s imports are reduced and the balance of payments deficit is corrected Creating better investment environment: That ensures transparency and stability of the law so that investors can calculate the development trend of investment projects Fundamental reform of administrative procedures according to principles investment activities of enterprises Creating favorable conditions for licensed projects to quickly deploy flexible processing activities to convert investment forms In addition to projects that are not licensed for investment due to national security requirements, it is necessary to expand the list of projects that allow foreign investors to choose investment forms based on business efficiency Regulating exports and imports: To maximum the export of advanced materials, equipment and vaccine especially To minimize the import of consumer goods and strictly control the import of automobiles and components for two-wheelers and motorcycles Conclusion BoP has been an important tool in assessing a country's macroeconomic situation Chapter clearly addresses bop-related issues such as definitions, components and effects on national accounts From there, give us an overview of balance of payments Chapter deals with each long-standing bilateral relationship between Vietnam and India Thereby, the close and close cooperation between the two sides is seen in many fields, especially the economy and trade Chapter is the most important chapter It clearly stated the specific issues of trade, import and export between Vietnam and India, the reality of investment and the balance of payments of Vietnam and India 22 Student: Ho Minh Chau Class: International Economics EEP 61A Chapter specifically mentioned solutions for the balance of payments of the two countries in the current global epidemic, causing many difficulties in the fields, especially trade and trade 23 Student: Ho Minh Chau Class: International Economics EEP 61A LIST OF REFERENCES Dominick Salvatore (2013), International Economics 11th Edition, Wiley, United States Federal Reserve Bank (2009), “Balance of Payments”, New York < https://www.newyorkfed.org/aboutthefed/fedpoint/fed40.html > “Balance of Payments”(2021), from < https://cleartax.in/s/balance-of-payment> “Vietnam – India: Increasing Trade and Investment Relations” (2021), from “Balance of International Payments in India” (2021), from < https://www.indiamacroadvisors.com/page/category/economic-indicators/internationalbalance/balance-of-payment-bop/> Dang Thai Binh (2021), “Thực trạng kết nối kinh tế Việt Nam Ấn Độ”, from < https://vass.gov.vn/nghien-cuu-khoa-hoc-xa-hoi-va-nhan-van/thuc-trang-ket-noi-kinh-te-giua-vietnam-va-an-do-111? fbclid=IwAR3lsnZRJjZcJJT4Avxp_jNfmFtorW5OHKNnGqtsNZIbcr4uTqYVaGO34_E> “Indian Investment in Vietnam – How to structure Operations for Success” (2020), from < https://www.vietnam-briefing.com/news/indian-investments-vietnam-how-to-structureoperations.html/> “India – Vietnam trade and economic cooperation” (2021), from < https://www.indembassyhanoi.gov.in/page/economic-and-commercial/> Trading Economics (2021), from 10 “Top Measures to Correct Deficit Balance of Payments”, from < https://www.microeconomicsnotes.com/balance-of-payments/top-7-measures-to-correct-deficitbalance-of-payments/1726> 11 The State Bank of Vietnam 24 Student: Ho Minh Chau Class: International Economics EEP 61A 12 The Reserve Bank of India https://m.rbi.org.in/scripts/SDDS_ViewDetails.aspx?SDDSID=254&ID=5&fbclid=IwAR1nAN3HJzcsNCYFQn_peOb4HIQnAowjya0hy5cW2Eht_oBO26FIRe1vyo 25 Student: Ho Minh Chau Class: International Economics EEP 61A ... basis of the actual analysis of the international balance of payments of Vietnam and India, assessing the results as well as limitations of the balance of payments between Vietnam and India, ... Chapter 1: Balance of Payments in general Chapter 2: Relationship between Vietnam and India Chapter 3: The Balance of Payments between Vietnam and India Chapter 4: Solutions for the Balance of Payments... technology, chemicals and building materials 3.4 Balance of Payments between Vietnam and India: Table Balance of Payments between Vietnam and India in 2020 (Recorded in Vietnam) (Millions of USD) Credit/debit