Ample room for Vietnam-India trade co-operation

Vietnam has plenty of fresh and processed agricultural products, along with wooden products, that enjoy advantages when being exported to the Indian market. Meanwhile, Indian investors are keen to seek further investment opportunities in the Southeast Asian nation.

Rosy Huong

huongthhd@gmail.com December 21, 2020 | 08:32

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Delegates at the trade webinar. Photo: VOV

These remarks were made during a trade webinar and a face-to-face meeting held at two bridge points in Vietnam’s northern port city of Hai Phong and the Indian capital of New Delhi on December 17, VOV reported.

During his speech, Atul Kumar Saxena,President of Indian Importers Chambers of Commerce & Industries (IICCI), highlighted an array of opportunities that would facilitate trade, investment and business co-operation between the two nations, adding those markets are reciprocal.

Vietnam is capable of exporting agricultural products, fresh fruits, processed food, and furniture to India. In return, Indian businesses have the chance to take advantage of the potential that exists within the Vietnamese market in the fields of pharmaceuticals, information technology, and machinery, Saxena added.

At present, the nation produces a large quantity of electronic products for exports. With changes occurring in the global business environment, the country is capable of offering a wide range of products that can substitute for goods imported from China. As a result of changes in geopolitics, the IICCI is in the process of moving co-operation ties in this direction.

People walk in front of the HCL Technologies Ltd office at Noida, on the outskirts of New Delhi on April 17, 2013. Photo: Reuters

Domestic firms can also strive to take advantage of the technologies that India owns to upgrade their own infrastructure, although Indian businessmen must come to the country in order to explore products and future business opportunities across multiple fields, the IICCI official noted.

According to Do Quoc Hung, deputy director of the Asia-Africa Market Department under the Ministry of Industry and Trade, India is among Vietnam’s top 10 leading trading partners, whilst Vietnam is the fourth largest trading partner of India in ASEAN.

Two-way trade turnover has increased more than 10 times since the establishment of the bilateral strategic partnership in 2007, exceeding US$11 billion in 2019, of which Vietnamese exports to India hit US$6.6 billion.

India has poured approximately US$1 billion into roughly 250 projects throughout Vietnam so far. Recently, the Indian technology company HCL officially announced the establishment of a branch in the country, including an investment of some US$650 million with a set target of training 10,000 engineers.

Furthermore, tourism co-operation has seen strong developments in recent years, with tourist exchanges between the two countries rapidly increasing. Between 2016 and 2019 period, Indian visitors to Vietnam surged by an average of 25 percent annually, and Vietnamese visitors to the South Asian nation recorded an annual rise of 17 percent.

In the context of global trade being an extremely important factor in an effort to promote growth and prosperity with markets starting to recover from the impact of the novel coronavirus (COVID-19) pandemic, Vietnamese and Indian businesses must seize upon the opportunities to boost production and business co-operation. In addition, both sides should strive to diversify sources in order to bolster imports and exports moving forward./.

Prime Minister Nguyen Xuan Phuc shakes hands with Indian Prime Minister Narendra Modi at the Government Office in Ha Noi on September 3, 2016. Photo: VGP

Prime Minister Nguyen Xuan Phuc and Indian Prime Minister Narendra Modi will hold virtual summit on December 21, according to Foreign Ministry’s Spokesperson Le Thi Thu Hang.

The two leaders are expected to discuss measures to foster the Viet Nam-India comprehensive strategic partnership as well as regional and international issues of shared concerns.

The pair will also discuss ways to beef up bilateral cooperation at multilateral forums as both countries are non-permanent members of the United Nations Security Council next year.

Vietnam and India with historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations.

Ho Chi Minh and Mahatma Gandhi, regarded as the Father of Nation in Viet Nam and India respectively, led people in their heroic struggle against colonialism in the two countries.

India was the Chairman of the International Commission for Supervision and Control (ICSC), which was formed pursuant to the Geneva Accord of 1954 to facilitate the peace process in Viet Nam.

Both countries established diplomatic relations on January 7, 1972 and elevated to the level of ‘Strategic Partnership’ during the visit of Vietnamese Prime Minister Nguyen Tan Dung to India in July 2007.

The bilateral relations were further elevated to a “Comprehensive Strategic Partnership” during Indian Prime Minister Modi’s visit to Viet Nam in 2016, VGP reported.

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