Prime Minister Pham Minh Chinh attended and spoke at the Vietnam-India Business Forum in New Delhi, July 31. (Photo: Nguyễn Hồng)

Notably, Gautam Adani, one of India's most influential billionaires, has announced a potential US$2 billion investment to construct the Lien Chieu Port in Da Nang.

The port will not only enhance the country's maritime infrastructure but also serve as a critical node in regional and global supply chains. This investment aligns with Vietnam's strategic goals of becoming a central logistics hub in Southeast Asia.

Beyond port development, the Adani Group has expressed interest in participating in the second phase of the Long Thanh International Airport and the expansion of Chu Lai Airport.

In another promising development, BDR Pharmaceuticals, a leading Indian pharmaceutical company, aims to establish a manufacturing base in Vietnam for cancer treatment drugs.

Deep-rooted ties and shared aspirations

The growing collaboration between India and Vietnam is not a new phenomenon but rather a continuation of a long-standing historical connection. The two nations have consistently supported each other in various international forums and have built strong political, economic, and defence ties.

The establishment of the Comprehensive Strategic Partnership in 2016 further solidified this relationship, fostering cooperation in diverse fields including education, science and technology, and defence.

As Vietnam looks to diversify its economy and reduce reliance on traditional sectors, the expertise and experience of Indian companies can play a pivotal role in this transformation. The influx of Indian investment and technology will not only bolster Vietnam's infrastructure but also pave the way for knowledge transfer, skill development, and innovation.

Dr Majo George, senior lecturer in Logistics and Supply Chain Management, RMIT University Vietnam.

A bright future ahead

Vietnamese businesses have a tremendous opportunity to capitalise on recent and future investments from India. To effectively integrate into the value chains and ecosystem established by Indian enterprises, Vietnamese companies can consider the following key actions:

Form strategic partnerships: Proactively engage in joint ventures and strategic alliances with Indian businesses across various sectors, including infrastructure, pharmaceuticals, research and development (R&D), and technology. This collaboration can facilitate technology transfer, operational efficiency improvements, and access to new market opportunities.

Leverage local strengths: Utilise Vietnam's strengths in manufacturing and services to complement Indian investments. This can enhance the overall value chain by providing cost-effective, high-quality products and services, particularly in areas where Vietnam has a competitive edge.

Explore export opportunities: With India's vast market potential, Vietnamese companies should explore export opportunities, especially in sectors where they hold competitive advantages. Establishing distribution networks and partnerships in India can expand their market reach.

Invest in skill development: Focus on upskilling and reskilling the workforce to meet the demands of high-tech industries. Companies can consider investing in training programs and workshops with Indian experts to build local capacity. This ensures that Vietnamese businesses can meet quality standards and innovate effectively, particularly in infrastructure development and pharmaceuticals.

By taking these proactive steps, Vietnamese businesses can integrate into the evolving value chains, enhance infrastructure development, and strengthen economic ties with India.

Overall, the entry of Indian conglomerates into Vietnam marks a significant milestone in the bilateral relationship. It underscores the potential for both countries to achieve remarkable progress by working together.