India, Vietnam eye greater trade, investment in shadow of Covid-19 spread

09:24 | 12/03/2020 Cooperation

(VEN) - Indian businesses are seeking opportunities for trade and investment cooperation in Vietnam.

india vietnam eye greater trade investment in shadow of covid 19 spread

Strengthening cooperation

Indian Ambassador to Vietnam Pranay Verma said the Coronavirus disease (Covid-19) provides India with opportunities and challenges. While some Indian businesses have been affected by a shortage of input materials, the epidemic is also an opportunity for India to overhaul some sections of its supply chains.

India and Vietnam are two economies with great complementarity, for example in the garment and textile, leather and footwear sectors. In particular, many Indian businesses are interested in imports of Vietnam’s machinery and equipment.

“We want to provide raw materials for Vietnamese businesses that have faced insufficient supply due to the spread of the Covid-19 epidemic. In addition, India also wants to work with Vietnamese businesses to import products of which the country is still short. We are working with the Vietnamese Ministry of Industry and Trade and businesses to discuss solutions in order to promote cooperation,” Verma said.

Large Vietnamese businesses are eyeing potential investment in India. Currently, India has a US$1 billion credit package to facilitate infrastructure and digital connectivity, providing Vietnamese businesses with an opportunity to promote investment there.

The Indian government has set an ambitious target of becoming a US$5 trillion economy, and it hopes Vietnam will accompany the country on this journey, Verma said. Vietnamese businesses will be interested in priority areas in India, such as infrastructure, Verma added. India plans to promote market expansion and strengthen investment in Vietnam in the fields of renewable energy, information technology and pharmaceuticals.

Verma also affirmed that the two governments would provide maximum support for businesses to explore trade and investment potential.

India will also focus on promoting cultural interchange between the two nations and provide support for Vietnam to restore and preserve cultural heritage sites, such as the My Son Sanctuary.

More energy projects

A Vietnamese delegation led by Minister of Planning and Investment Nguyen Chi Dung conducted a recent working visit to India to examine opportunities for trade and investment, meeting with Indian business representatives interested in investment in Vietnam.

For example, Essar, a multi-sector group operating in energy, oil and gas, industry, fertilizer production, infrastructure development, finance, and information technology, said the group is seeking an opportunity to build an integrated US$8 billion center, including a gas-fired power plant, transformer stations and transmission facilities.

NTPC Limited expressed its willingness to develop programs between the two governments, or projects with Vietnamese businesses. The company’s current operating capacity is greater than 65,000MW, including 50,000MW from coal, and it is capable of providing about 4,000MW in renewable energy.

HCL Technologies also expressed its desire to establish a technology center in Vietnam with total investment capital of up to US$650 million.

Vietnam and India have established direct flights, creating favorable conditions for both sides to promote cooperation in various fields. Vietnamese businesses should take advantage of opportunities in business forums and trade fairs to seek partners and learn about market needs.

Nguyen Huong