India, Vietnam welcome new areas of cooperation

Vietnamese Deputy Prime Minister Trinh Dinh Dung spoke at the Vietnam-India Business Forum held in Hanoi on November 19

India is now one of Vietnam’s 10 largest trading partners. Two-way trade has increased over the years since the two countries established a strategic partnership, reaching US$7.63 billion in 2017, and US$8.3 billion in the first nine months of 2018. The two countries are working towards a goal of US$15 billion in bilateral trade.

By September 2018, India poured US$877 million into 201 investment projects in Vietnam, ranking 29th among the 129 countries and territories investing in the country. Most of the projects focus on the manufacturing and processing industry, telecommunications, information technology and mining. Many major Indian corporations, such as TATA, ONGC and Essar have reported successful operations in Vietnam.

According to the Indian Embassy in Vietnam, the Indian government has deployed a US$100-million package to support its companies investing in Cambodia, Laos, Myanmar, and Vietnam, with a focus on Vietnam’s garment and textile sector. Many Indian companies have also shown their interest in investing in renewable energy in central Vietnam.

Up to now, Vietnam has pumped US$6.16 million into eight projects in India, mainly in the distribution of animal feed, building materials, cosmetics, and informatics products.

Speaking at the Vietnam-India Business Forum held in Hanoi on November 19 during Indian President Ram Nath Kovind’s state visit to Vietnam, Vietnamese Deputy Prime Minister Trinh Dinh Dung said Vietnam expects Indian companies to invest more in the country, especially in the fields of renewable energy, manufacturing industry, information technology and infrastructure construction.

Initiatives like “Made in India”, “Digital India” and “100 smart cities” will create numerous cooperation opportunities for the two countries’ businesses, Deputy PM Dung stressed. In addition, the two sides should set up dialogue mechanisms among businesses and between the business communities and governments, thus giving opportunities for them to share strategies and vision on development cooperation. Businesses of both sides should become more active in promoting partnerships, the Deputy PM said.

For his part, Indian President Ram Nath Kovind said agriculture is an important area of cooperation between the two countries. Agricultural production, processing, pharmaceuticals and biotechnology are also promising fields of cooperation. As the third largest medicine producer in the world, India can help Vietnam improve healthcare service quality and provide cheaper medicine for people, he said, adding that Indian pharmaceutical companies look forward to opening up drug factories in Vietnam.

The Indian leader said India’s gross domestic product (GDP) growth reached 8.2 percent in 2017, the highest among the world’s major economies. In 2025, the country’s GDP is expected to reach US$5 trillion, doubling the current figure. With effective solutions to digital connection, economic reform, population control and favorable environment for startups, India hopes to become the third largest consumer market in the world in 2025, the president said, adding that the country has started building new generation infrastructure with 100 smart cities and seven high-speed railway corridors, along with broad-band connections.

The president affirmed the two countries could cooperate in information technology, digital economy, renewable energy, healthcare and civil aviation. He also recommended developing a favorable environment for creativity and startups to get on board the fourth industrial revolution.