Vietnam, India target $20bn in bilateral trade: Prime Minister
Prime Minister Pham Minh Chinh calls on Indian companies to make further investments in Vietnam.
Vietnam expects to soon raise bilateral trade with India by one-third to US$20 billion from last year’s figure, said Prime Minister Pham Minh Chinh on July 31.
| Vietnam's Prime Minister Pham Minh Chinh delivers his remarks at the Vietnam-India Business Forum on July 31. Photo: VGP |
Speaking at the Vietnam-India Business Forum in New Delhi, the Vietnamese Prime Minister cited official data, showing that bilateral trade increased by 75-fold since 2000 to $15 billion in 2023. Of the figure, Vietnam’s exports accounted for $8.5 billion.
Indian companies have set up 410 investment projects in Vietnam worth more than $1 billion. India is now the 25th largest investor in Vietnam. In the opposite direction, there are 16 Vietnamese investment projects in India with a total of $14 million worth of capital, excluding Vingroup’s projects.
According to the Vietnamese Government leader, there are five factors behind the successful bilateral relations between the two countries: strong traditional ties, high political trust, open markets, shared culture and history, and mutual inspiration for sustainability.
Prime Minister Chinh called on Indian ministries, associations, and organizations to support and promote dialogue and investment connections for governments and businesses of both countries.
He also expected that Indian government agencies will support Vietnamese businesses to expand and operate effectively in India, and facilitate the access of more Vietnamese goods to the Indian market.
Prime Minister Chinh urged Vietnamese authorities to address difficulties faced by Indian investors in Vietnam, review and reform administrative procedures, increase the use of digital technology, decentralize decision-making power, reduce costs and time for citizens and businesses, and prepare to attract foreign investments.
“The Vietnamese Government is committed to providing the best environment for foreign investors, especially the Indians,” PM Chinh said as he highlighted the principles of “harmonious benefits and shared risks" and "what is said must be done, what is committed must be executed, and what is executed must yield measurable results."
Looking ahead, PM Chinh has high hopes that there will be more direct flights between Vietnamese and Indian cities, and that more ODA programs will be executed, with a focus on infrastructure developments for transportation, energy, the digital economy, and climate change response.
He invited Indian investors to set up new projects in Vietnam, and give priority to the fields of high technology, electronics, science and technology, artificial intelligence (AI), infrastructure development, renewable energy, new energy such as hydrogen, biotechnology, innovation, high-tech agriculture, and pharmaceuticals.
“Indian investors should also enable Vietnamese companies to join their global supply chains. Additionally, Vietnam is a suitable destination for foreign companies to build their R&D and high-tech facilities,” he said.
“Foreign-invested projects play an important part of the Vietnamese economy. They represent the joint efforts of foreign and local companies, pave the way for further public-private partnerships, and drive the development of a green, digital, circular, and knowledge-based economy.”
Echoing the remarks of Prime Minister Chinh, India’s Union Minister of State for Commerce and Industry Jitin Prasada hoped that the two nations would see robust growth in economic cooperation.
As economic ties between Vietnam and India have grown strongly, he believed that two nations’ business communities should strengthen their collaboration to realize the full potential of bilateral trade.
Also at the forum, two countries’ conglomerates inked six cooperation agreements in aviation, tourism, culture, and pharmaceuticals.
Notably, Vietnam's low-cost carrier Vietjet Air’s will launch a new route connecting the central coastal city of Danang with India’s Ahmedabad. The new route will debut in October.
Among other agreements, national flag carrier Vietnam Airlines and Innovations India partnered to co-organize the third Vietnam-India Friendship Festival. Meanwhile, Vietnam’s multi-sectoral group Sovico and Adani (India) agreed to make investments in airport and logistics development.
