Việt Nam and India can co-operate in areas of strength such as agriculture, textiles, footwear, renewable energy, and pharmaceuticals, according to the Ministry of Industry and Trade.

Delegates at the seminar titled Việt Nam-India Trade, Business and Economic Outlook
held by InCham in HCM City on July 4. (Photo: VNS)

Speaking at a seminar titled Việt Nam-India Trade, Business and Economic Outlook held by the Indian Business Chamber in Việt Nam in HCM City on Thursday, Đỗ Quốc Hưng, director of the ministry’s Africa-Asia market department, said “Việt Nam could collaborate with and learn from India’s experience in aquaculture, treatment of the shrimp farming environment, technology transfer, and wind and solar energy development.

“India could learn about agriculture and development of the handicrafts industry from Việt Nam,” he said.

Trade between the two countries surged from US$2.75 billion in 2010 to $10.86 billion last year, he said, adding that they target $15 billion by 2020.

Raja Shekhar, a member of the board of governors, investment and legal, Incham, said: “India’s investments in Việt Nam are around $1.66 billion including investments routed through third countries, but are expected to rise in the coming years. The major sectors of investment are energy, mineral exploration, agro-processing, sugar manufacturing, agro-chemicals, IT and auto components.”

With the new Law on Pharmaceuticals and Việt Nam’s requirement to increase the use of local materials, Indian drug companies are being encouraged to set up plants in Việt Nam.

Indian companies have also made significant investments in wind and solar power projects in the country, he said.

K Srikar Reddy, the Indian consul general in HCM City, said, “The Indian corporate sector has a growing interest in investing in and doing business with Việt Nam, both bilaterally and as a hub for reaching out to East Asia.”

But Indian investment in Việt Nam remains modest compared to its total outbound investment.

“Therefore, there is much potential for Indian companies to invest in Việt Nam to take advantage of the stable political and economic environment, attractive investment policies, cheap labour, availability of raw materials and potential market access due to free trade agreements that Việt Nam has concluded recently such as the CPTPP and EU-Việt Nam FTA.”

Võ Trí Thành, a senior expert at the Central Institute for Economic Management, said as a transitional and developing economy Việt Nam offers ample business opportunities in many sectors like infrastructure, housing, tourism property, smart cities, creative industries, services, healthcare and education.

Việt Nam is at a decisive juncture in transforming the paradigm of development, and interaction between domestic reforms and international integration becomes much more profound, he added.

Việt Nam’s investment in India

Reddy said Việt Nam has eight projects in India with a total investment of $6.16 million.

“We want more Vietnamese companies to explore the gigantic market of 1.3 billion people.

“Indian growth presents opportunities for two-way engagement in financial services, IT, digital economy, hydro-carbons, defence, renewable energy, mining, healthcare, tourism and civil aviation.

“We want Việt Nam to collaborate with us in our flagship programmes - Make in India, Clean India, Start-up India, and Digital India.” 

India is the 10th largest trading partner of and 29th largest investor in Việt Nam, he said.

“I hope India will be among the top five trading partners and top 10 investors in Việt Nam in the next few years.”

The seminar also provided information about the benefits and advantages of Việt Nam’s economy, culture and consumption commonalities between the two countries and the commitments of the two countries under free trade agreements.

Ramesh Anand, Incham chairman, said InCham acts as a catalyst to promote India-Việt Nam trade and cultural exchanges.