To understand the investment opportunities and trends of Indian businesses in the new period, Business Forum Magazine had an interview with Mr. Indroni Sengupta, Chairman of the Indian Business Association in Vietnam (InCham).

In your opinion, what advantages will Prime Minister Narendra Modi's affirmation that Vietnam is a strong pillar in India's Act East policy and a key partner in India's Indo-Pacific vision bring to business cooperation between the two countries?

It’s notable that this statement was delivered by Mr. Modi in 2016, when Vietnam and India upgraded their relationship to a "Comprehensive Strategic Partnership" and was reaffirmed in Mr. Pham Minh Chinh’s visit to India. Therefore, this is not just a temporary opinion, but a long-term policy. I believe that both countries will do more to create a favorable environment for business cooperation, driving economic growth and opportunities. Business cooperation, of course, would benefit from this.

As Vietnam is now important in India's regional strategy, there could be a push to expand bilateral trade. This could involve reducing trade barriers, improving logistical connections, and increasing trade in sectors where both countries have a competitive edge.

PM Prime Minister Modi's statement underscores India's commitment to strengthening ties with Vietnam, potentially encouraging Indian businesses to invest in Vietnamese markets and vice versa. This could lead to joint ventures, partnerships, and increased capital flow between the two nations. Both countries may explore strategic collaborations in key sectors such as technology, pharmaceuticals, or emerging sectors like tourism.

In terms of the business environment, the emphasis on Vietnam as a partner in the Indo-Pacific vision may foster a more stable and secure regional environment, which is beneficial for business operations and investments. Enhanced security can encourage multinational companies to engage more deeply in both markets.

Technology is becoming a key driver of growth, development, value chain, and prosperity in today's ever-evolving world. And India and Vietnam focus on incorporating technology trends into national economic plans. In your opinion, what does Vietnam need to do to attract investment from Indian businesses in technology?

Vietnam is already attractive to not only Indian businesses, but also businesses globally. This is due to the stable business environment, various incentives for foreign investors in the high-technology sector, and the government's clear strategy for national digital transformation.

However, there’re still a lot to improve. Due to the very high industrial growth in Vietnam over the last 20 years, availability of skilled human resources is becoming a challenge in the last few years. Some of our investors, for example – HCL (one of the biggest IT companies in India) have even been working on building their own labor force. They had agreements with many universities and provinces to support students in tech majors and recruit them right after graduation.

Secondly, Vietnam needs to foster a supportive regulatory environment. Our investors often grapple with navigating Vietnam’s regulatory environment. Despite the Vietnamese government’s ongoing efforts to streamline administrative procedures, businesses continue to encounter various issues related to implementation. It is commendable that the Government of Vietnam maintains an open dialogue with business chambers to simplify administrative processes.

What should Vietnamese businesses pay attention to in order to enter the Indian market?

For Vietnamese businesses looking to enter the Indian market, there are several crucial aspects to consider to ensure a successful expansion. Here are some key areas Vietnamese businesses should pay attention to:

Understanding the market and consumer behavior is crucial to correctly navigate your business plan. India is diverse, with varying tastes and needs across different states. Companies should recognize and adapt to regional cultural differences and preferences within India. Conducting thorough market research is recommended to understand Indian consumer preferences, purchasing behavior, and market demand for your products or services.

Your entrepreneurs also should network and build local partnerships. Partner with local agents or distributors who have a deep understanding of the Indian market and can help navigate local business practices or consider forming joint ventures with Indian firms to leverage their market knowledge and networks. Indians value the importance of business networking and relationships. Businesses’ success could be largely based on building trust and long-term positive relationships with partners. Indian businessmen also value legal contracts and those should be done appropriately.

We at INCHAM would be most willing to be the bridge & facilitate the entry of Vietnamese companies in India.

What plans does Incham have for the near future to further promote business cooperation between India and Vietnam and realize the goals set by the two leaders during their recent visit?

As this year also marked our 25th year working toward promoting bilateral trade relations, we’re having lots of plans in implementing. Lack of information has always been a barrier for both Indian and Vietnamese companies when investing in other countries. InCham is providing Business Advisory services to any business that needs them. Information shared are varied, including business landscape, regulatory support, market information, building partnership and collaborations, etc.

In upcoming time, InCham is going to have a Business Conclave on Digital Economy, which will have the experts from both Vietnam and India, sharing the information, insights, tips to tap into the digital market in both countries. This is also an opportunity for entrepreneurs, business leaders, start-ups to networking and explore potential cooperations.

Thank you very much!