10:22 | 04/11/2020 Cooperation
Opportunities to enhance trade and investment in various sectors between India and Việt Nam were recently iscussed at a seminar in HCM City.
|An Indian solar power plant in Khánh Hòa Province. There is huge potential to enhance co-operation between India and Việt Nam in several sectors — Photo tapchitaichinh.vn|
Nguyễn Thanh Bình, director of the Trade Information Centre belonging to the Việt Nam Chamber of Commerce and Industry, HCM City branch, told ‘Business Outlook Seminar Series India – Việt Nam Trade and Investments’, held by the Indian Business Chamber in Việt Nam, that trade between the two countries has been growing steadily in recent years to reach US$11.2 billion last year.
But India is only the 26th largest investor in Việt Nam, and there is much more room for Indian companies to invest in this country to take advantage of its economic environment, strategic location, young population, cheap labour, and global market access due to free trade agreements that Việt Nam has concluded such as the CPTPP and EU-Việt Nam FTA.
“Through talking with Indian promotion agencies, we realise that India wants to enhance investment in Việt Nam in the coming time.”
Ramesh Anand, chairman of the Indian Business Chamber in Việt Nam (Incham), said, “It is exciting to say that we are witnessing an increase in interest among Indian investors in Việt Nam.
“We believe that the Indian economic presence in Việt Nam in the coming years will be significant, beneficial and acknowledged.”
Bình said Việt Nam is in the process of building infrastructure, and needs investment but also expertise in energy and ports.
Under its plan to attract FDI the Government is promoting foreign investment in manufacturing, services, high-tech agriculture, and high-value tourism services, he said.
Pharmaceuticals and medical equipment manufacturing, health and education services, financial services and technology, information technology, and intellectual services (knowledge process outsourcing) are among the country’s priority for investment in the medium term, he said.
The country’s plan to attract new FDI wants “quality investment.”
India has strengths in pharmaceuticals, oil and gas, IT and services, and his country wants to attract Indian investment in these sectors, he said.
“We want Indian companies to invest in the pharmaceutical sector in Việt Nam.”
In the garment and textile sector, Việt Nam wants Indian firms to increase the supply of various kinds of yarns and fabrics, he said.
Anup Kumar Dave, general director of Kirby South East Asia Co., Ltd, said investment opportunities are also available in steel, solar energy and electric car manufacturing.
“Việt Nam’s steel industry is on a growth path and a gap of 8.7 million metric tonnes exists between demand and supply. It imports from China, Korea, India, Taiwan, and Japan to meet demand.
“New facilities are being built. It will take three to five years before steel production can basically satisfy the market demand.
“Investment in hot-rolled steel coils and electromagnetic steel sheets manufacturing is being solicited by the Vietnamese Government.
“We see a lot of investors from India are coming in Việt Nam to invest in solar power.”
The Government will consider scaling back plans for coal-fired plants and offering investment opportunities in renewables instead, he said.
Anand said: “From time to time we request Government departments to inform Incham about investment opportunities in HCM City and neighbouring provinces. This would enable our members and business houses in India to explore these opportunities.”
Incham acts as a catalyst to promote India –Việt Nam trade and cultural exchanges, and the seminar was an activity meant to help stakeholders further understand and promote industry in the changing environment, he said.