ET BureauVietnamese diplomat Nguyen Tuan Quang on India-Vietnam economic partnership and the coming visit of Vietnamese Prime Minister to India.
How will the coming visit of Vietnam's Prime Minister boost India-Vietnam trade and investment relations?
The coming visit of Vietnam’s Prime Minister to India is of great importance for boosting India-Vietnam trade and investment relations. Good results have already been witnessed in relations during the past decade, especially from the signature of Strategic Partnership by two countries in 2007. The bilateral trade incresead sharply from USD 200 million in 2000 to USD 500 million in 2008, USD 3.9 billion in 2011 and USD 8,0 billion in 2013-14.
Indian investment in Vietnam is valued at USD 258.26 million of registred capital under 84 investment projecst. The extension of a line of credit worth USD 100 million on defence procurement is particularly significant. The results are very positive, but they still don't match the huge potentials and aspirations of Governments and Peoples of the two countries for mutual understanding and benefits.
Share of Indian exports to Vietnam in 2013-14 (USD 5.411 billion) was only 1.73% of total Indian export (USD 314.41 bilion) and import from Vietnam (USD 2.59 billion) only 0.58% of total Indian import (USD 450.2 billion). The wish of Vietnam is to develop comprehensive relations with India.
This coming visit aims to push bilateral relations of friendship, tradition and India-Vietnam Strategic Partnership in all sectors to deeper, more expanded and effective levels for the benefits of both countries’ peoples. This is to exploit bilateral potentials more fully.
The PM is coming with a huge business delegation to India. What are new business sectors where Vietnam wants to focus in India to reduce its dependence on China?
Vietnam’s business community pays great attention to doing business and investment with the Indian entrepreuners. The coming of the huge business delegation from Vietnam is clear evidence of it. During the visit, they will meet with Indian counterparts, discuss and find opportunities to do more business and investment in both countries. We want to develop and diversify economic relations with all countries in the world, not to depend on any single country.
Vietnam is looking forward to Indian investment in new business sectors where India has advantages: infrastructure and power generation and distribution, international bidding of projects in Vietnam, IT, education at place, pharmaceutical research and production, co-operation in agro field, etc. India can seek more export of equipments and machineries, industrial products, raw materials for industries, pharmaceuticals, processed foods... Vietnamese companies should be also encouraged to find investment opportunities in india in food processing, plastic ware production, wooden products…
What are areas being offered to Indian investors to invest in Vietnam?
Vietnam highly appreciates Indian investments. Projects of ONGC Videsh Limited (OVL) in oil and natural exploration, big Project of power plant by Tata Group, pharmaceutical and sugar production, chemicals, home appliance, hydro power, marble, carbon black, etc., are some of them.
Many foreign investors have been successful in Vietnam. India possesses potential, competitive acumen and a famous group of companies in engeneering, mechanical production, IT, pharmaceutical industry, agro field, construction, mining, etc. Our Government is creating favourable conditions for Indian investors. The sectors are oil and gas exploration and exploitation, infrastructure, mining, mechanical production, shipbuilding, IT, textile and garments, pharmaceuticals, processed foods, agro growing and processing…
The PPP (Trans Pacific Partnership) FTA is under negotiation between 12 countries of Asia-Pacific and America, including Vietnam. This FTA is forecast to be concluded soon. Indian companies should be encouraged to transfer production of fiber and garments and other products into Vietnam to produce there and export products from Vietnam into TPP markets where Vietnam will be a member, exploiting the preferencials of this TPP.
What do you think should be done in terms of policy and environment to boost bilateral business and investment ties by both India and Vietnam?
The two-way trade was USD 8.0 billion in 2013-14. The leaders of the two countries fixed the target of USD 15.0 billion before 2020. This target could be achieved soon and more Indian investment could be available in Vietnam if business and investment environment is be further promoted.
The two countries are to negotiate and conclude the Preferential Trade Agreement (PTA) to reduce custom tarriffs so that the business communities can access more to each other's markets.
They need to send trade and investment delegations to the different states and provinces of each country, considering the scale of market and strong sectors of each state/province, instead of delegations reaching only big cities of the two countries (New Delhi, Mumbai, Kolkata, Chennai in India, and Ho Chi Minh City, Hanoi, Hai Phong in Vietnam).
Other cities/provinces are now emerging and they have some specific sectors which are very developed with open door policy, attracting business and foreign investment.
Governments of India and Vietnam should be facilitator in promoting foreign investments. From different investment opportunities, they should choose the most effective ones to concentrate on (infrastructure, power generation, IT, pharmaceutical manufacturing). The two governments will create the task forces to study and push these projects within planned period.
Instead of being competitors in agro production and export, Vietnam and India need a cooperation mechanism. The products i.e. rice, black pepper and cashew can be co–operated upon in bilateral form between Vietnam and India, or multilateral form with other countries i.e. India – Vietnam – Thailand – Malaysia…
There should be a Project to promote export of Indian machineries and equipment, which are of good quantity. There should be competitive price under one mechanism/agency for research and promotion.
How will the coming visit of Vietnam's Prime Minister boost India-Vietnam trade and investment relations?
The coming visit of Vietnam’s Prime Minister to India is of great importance for boosting India-Vietnam trade and investment relations. Good results have already been witnessed in relations during the past decade, especially from the signature of Strategic Partnership by two countries in 2007. The bilateral trade incresead sharply from USD 200 million in 2000 to USD 500 million in 2008, USD 3.9 billion in 2011 and USD 8,0 billion in 2013-14.
Indian investment in Vietnam is valued at USD 258.26 million of registred capital under 84 investment projecst. The extension of a line of credit worth USD 100 million on defence procurement is particularly significant. The results are very positive, but they still don't match the huge potentials and aspirations of Governments and Peoples of the two countries for mutual understanding and benefits.
Share of Indian exports to Vietnam in 2013-14 (USD 5.411 billion) was only 1.73% of total Indian export (USD 314.41 bilion) and import from Vietnam (USD 2.59 billion) only 0.58% of total Indian import (USD 450.2 billion). The wish of Vietnam is to develop comprehensive relations with India.
This coming visit aims to push bilateral relations of friendship, tradition and India-Vietnam Strategic Partnership in all sectors to deeper, more expanded and effective levels for the benefits of both countries’ peoples. This is to exploit bilateral potentials more fully.
The PM is coming with a huge business delegation to India. What are new business sectors where Vietnam wants to focus in India to reduce its dependence on China?
Vietnam’s business community pays great attention to doing business and investment with the Indian entrepreuners. The coming of the huge business delegation from Vietnam is clear evidence of it. During the visit, they will meet with Indian counterparts, discuss and find opportunities to do more business and investment in both countries. We want to develop and diversify economic relations with all countries in the world, not to depend on any single country.
Vietnam is looking forward to Indian investment in new business sectors where India has advantages: infrastructure and power generation and distribution, international bidding of projects in Vietnam, IT, education at place, pharmaceutical research and production, co-operation in agro field, etc. India can seek more export of equipments and machineries, industrial products, raw materials for industries, pharmaceuticals, processed foods... Vietnamese companies should be also encouraged to find investment opportunities in india in food processing, plastic ware production, wooden products…
What are areas being offered to Indian investors to invest in Vietnam?
Vietnam highly appreciates Indian investments. Projects of ONGC Videsh Limited (OVL) in oil and natural exploration, big Project of power plant by Tata Group, pharmaceutical and sugar production, chemicals, home appliance, hydro power, marble, carbon black, etc., are some of them.
Many foreign investors have been successful in Vietnam. India possesses potential, competitive acumen and a famous group of companies in engeneering, mechanical production, IT, pharmaceutical industry, agro field, construction, mining, etc. Our Government is creating favourable conditions for Indian investors. The sectors are oil and gas exploration and exploitation, infrastructure, mining, mechanical production, shipbuilding, IT, textile and garments, pharmaceuticals, processed foods, agro growing and processing…
What do you think should be done in terms of policy and environment to boost bilateral business and investment ties by both India and Vietnam?
The two-way trade was USD 8.0 billion in 2013-14. The leaders of the two countries fixed the target of USD 15.0 billion before 2020. This target could be achieved soon and more Indian investment could be available in Vietnam if business and investment environment is be further promoted.
The two countries are to negotiate and conclude the Preferential Trade Agreement (PTA) to reduce custom tarriffs so that the business communities can access more to each other's markets.
They need to send trade and investment delegations to the different states and provinces of each country, considering the scale of market and strong sectors of each state/province, instead of delegations reaching only big cities of the two countries (New Delhi, Mumbai, Kolkata, Chennai in India, and Ho Chi Minh City, Hanoi, Hai Phong in Vietnam).
Other cities/provinces are now emerging and they have some specific sectors which are very developed with open door policy, attracting business and foreign investment.
Governments of India and Vietnam should be facilitator in promoting foreign investments. From different investment opportunities, they should choose the most effective ones to concentrate on (infrastructure, power generation, IT, pharmaceutical manufacturing). The two governments will create the task forces to study and push these projects within planned period.
Instead of being competitors in agro production and export, Vietnam and India need a cooperation mechanism. The products i.e. rice, black pepper and cashew can be co–operated upon in bilateral form between Vietnam and India, or multilateral form with other countries i.e. India – Vietnam – Thailand – Malaysia…
There should be a Project to promote export of Indian machineries and equipment, which are of good quantity. There should be competitive price under one mechanism/agency for research and promotion.
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