12:05 | 26/08/2016 Companies
(VEN) - In term of tightening up the business relation between Vietnam’s and India’s manufacturer, Confederation of Indian Industry (CII) will lead the Indian machine tool and metal forming manufacturers to attend and display their technology as well as investment intention under “India Pavilion”, at METALEX Vietnam 2016 - International Exhibition on Machine Tools & Metalworking Solutions for Production Upgrade. The exhibition is organized from 6 – 8 October, 2016 at Saigon Exhibition and Convention Center (SECC).
CII will play its role as leader of India Pavilion at METALEX Vietnam 2016 to tighten up the business relation between manufacturers of the two countries.
Mr. Amit Panjwani, Director of CII, shared his view on the potentials of Vietnam’s market, including the plan to create more India-Vietnam business opportunities at forthcoming METALEX Vietnam 2016.
How do you think about the development and new opportunities in Vietnam market?
Vietnam is experiencing the quickest rate of growth in real GDP since the onset of the global financial crisis. Domestic demand has recovered in a favorable environment of low inflation, accommodative monetary policy, and consumer confidence, and is likely to stay robust. Recently, signed FTAs as well as the prospects offered by the Trans-Pacific Partnership (TPP) are likely to keep Vietnam an attractive destination for FDI in the medium term. Indeed, the Vietnam economy has continued to attract a steady inflow of FD I- $14.5 billion was disbursed in 2015, a 17.4 percent increase over the previous year. This is likely to further augment the manufacturing sector accounted 67 percent of the total capital for investment in 2015.
The performance of major sub-sectors—electronics and apparel—has been notable. The average year-over-year growth in the index for apparel manufacturing over the last 12 months is 8.7 percent. For computers, electronics, and optical products manufacturing, it stands at 23.9 percent.
This comes at a time when manufacturing in competitor economies in South East Asia are under stress due to a slowdown in China and weakness in global demand. Moreover, Vietnam’s relatively stable political environment and demographic structure (70 percent of the population is of working age and 58 percent of the population is below the age of 35 years) adds to its appeal.
What is your view on economic & commercial relations between Vietnam and India?
India is now among the top ten trading partners of Vietnam. According to data from Government of India (GOI), trade volume crossed USD 9 billion in FY 2014-15, achieving the target of USD 7 billion by 2015 well in advance. Both sides have agreed on a new trade target of USD 15 billion by 2020. Major export commodities from India are machinery and equipment, seafood, pharmaceuticals, cottons of all kinds, automobiles, textiles and leather accessories, cattle feed ingredient, chemicals, plastic resins, products of chemicals, fibers of all kinds, steel of all kinds, fabrics of all kinds, ordinary metals and Jewellery & precious stones. Indian investments in Vietnam have remained constant at around USD 1 billion but are expected to rise in the coming years. During 2015, Indian companies registered 23 new projects with a total capital of USD138.99 million in the areas of food processing, fertilizers, auto components, textile accessories etc. With these projects, India now has 132 projects with total investments of about USD1.07 billion.
Could you share the plan of CII to tighten up the business relationship between Vietnam & India manufacturers at forthcoming METALEX Vietnam 2016?
Bilateral trade between India and Vietnam has seen continuous growth over the past few years. Therefore, it’s time to explore more opportunities to meet up with potential companies in Vietnam at the international fair like METALEX Vietnam, in which at this event, we will not just only present our technology, create network, but also consider to forge strategic alliances with companies in Vietnam and start to set up the cooperation plan in near future such as technical collaborations, marketing tie ups/joint ventures, appointing local sales agents/distributors.
METALEX Vietnam 2016 will be able to create the market for India Machine Tool and Metal Forming manufacturers. Vietnamese business house can create good relationship and business prospect with Indian business people. CII with support of Ministry of Commerce will be mobilizing a large delegation of Indian companies for participating at the event. The member companies are manufacturing the products & technologies suited for the local market in Vietnam. We aim to establish business ties with companies in Vietnam on a common platform for catering to government, agencies and private sectors.