Vietnam wants to welcome an inflow of investment from big Indian businesses

Updated 8:2' 3/5/2018
Vietnamese President Tran Dai Quang (left) and Indian Prime Minister Narendra Modi.
Vietnam wants to welcome investment from big Indian businesses, particularly in energy, renewable energy, infrastructure, education, and information technology.
This was announced by Vietnamese President Tran Dai Quang at the talks with Indian Prime Minister Narendra Modi in New Delhi on March 3 as part of his ongoing State visit to India from March 2-4, during which both sides lauded the intensive and extensive development of Indian-Vietnamese relations in the 45 years since the countries officially set up diplomatic ties and reiterated their close-knit friendship.
After speaking of the strong development of Indian-Vietnamese relations and reiterating their close-knit friendship, the leaders agreed to fully implement high-level political commitments and the approved documents on political ties.
The countries will also tap into their potential and advantages to intensify cooperation in all spheres. They will increase mutual visits at all levels and enhance cooperation between their Parties, States, Governments, parliaments, localities, and peoples.
The leaders agreed to carry out breakthrough solutions, including diversifying export goods of their potential and strength, minimising trade barriers, closely consulting each other on trade policy issues, and expanding aviation and navigation connectivity to facilitate trade activities and boost bilateral trade to US$15 billion by 2020.
They also agreed to exchange development aid packages in the fields that can make breakthroughs, such as infrastructure, human resources, and science-technology, while improving research and development capacity.
The two sides concurred in strengthening defence-security cooperation, especially in English language training, capacity building, skills training, technology transfer, preferential credit provision, and hi-tech crime prevention.
In addition, the two leaders affirmed the importance to raise Vietnamese and Indian youths’ awareness of the long-lasting cultural and religious ties between the two countries, thus promoting people-to-people exchange and mutual understanding.
President Tran Dai Quang lauded India’s support for Vietnam to implement a project to conserve and embellish the My Son holy site, as well as the country’s future assistance to preserve the Cham Towers in Ninh Thuan province.
While comparing their notes on regional and international issues of common concern, Quang and Modi agreed on the importance to maintain peace and stability as well as aviation and navigation freedom; settle disputes by peaceful measures in line with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS); and fully respect diplomatic and legal procedures.
They also underlined the need to fully and effectively implement the Declaration on the Conduct of Parties in the East Sea (DoC) and soon achieve a Code of Conduct in the East Sea (CoC).
Modi affirmed that India will continue to promote the implementation of its “Act East Policy” to boost cooperation with the Asian-Pacific region, noting that Vietnam is a priority and plays a key role in the policy.
The two sides agreed to support each other at international and regional forums, especially in running for seats in important seats in the United Nations, and in sharing initiatives on global issues to realise UN Sustainable Development Goals (SDGs).
After their talks, President Quang and PM Modi witnessed the hand-over of cooperation agreements signed during the visit, including a memorandum of understanding (MoU) between the two sides’ ministries of industry and trade on economic and trade cooperation; the Action Plan on agricultural collaboration in 2018-2020; as well as the MoU on cooperation between the Vietnam Atomic Energy Institute and the Global Centre for Nuclear Energy Partnership.
At the same day, President Tran Dai Quang made a statement while addressing the India-Vietnam Business Forum in New Delhi as part of his ongoing State visit to India from March 2-4.
President Quang stated that Vietnam has become a dynamic economy with rapid and stable development after over three decades of implementing the “Doi Moi” (reform) and international integration policies. The Southeast Asian country is now seen as a safe and attractive investment destination in the region and around the world, he noted.
In 2017, the local economy expanded by 6.81% with the average gross domestic product (GDP) per capita reaching nearly US$2,400. Vietnam targets 6.5-7% in economic growth in the coming years. Per capita GDP is estimated at US$3,200-3,500. The economy will be worth about US$350 billion, he told participants.
He went on to say that the increasing attention from Indian businesses, including major groups, will soon turn India into one of the biggest trade partners of Vietnam.
Particularly, the “Make in India” economic development programme initiated by Prime Minister Narendra Modi will create more opportunities and make it easier for Vietnamese businesses to pour investment into India, President Quang added.
Furthermore, two-way trade has been increasing steadily over the years, especially since the signing of the ASEAN-India Trade in Goods Agreement in 2009. India is running 176 investment projects in Vietnam with a total registered capital of over US$814 million, ranking 28th out of the 126 countries and territories investing in Vietnam.
President Quang affirmed the two countries' strong determination to achieve two-way trade of US$15 billion by 2020. “Vietnam hopes India will become a leading material supplier of the apparel, footwear industries as well as make it easier for Vietnamese goods such as agri-products, seafood, timber products, and footwear to penetrate the market,” the President stressed.
He hoped Vietnamese and Indian entrepreneurs will continue playing a crucial role as a pioneering force in promoting the bilateral comprehensive strategic partnership in trade, investment, and economy.
At the business forum, President Quang witnessed a ceremony to launch the first direct air route between Vietnam and India. Tun by Vietjet Air, the routhe will connect Ho Chi Minh City with New Delhi with fours flights a week.

Source: Hanoitimes