Vietnam and India seek cooperation in emerging industries like circular economy, digital transformation, software industry, artificial intelligence (AI), and semiconductors to reach the target of US$20 billion in bilateral trade soon.
| Vietnamese Deputy Prime Minister Tran Luu Quang said at the Vietnam-India Business Forum in the framework of the 10th Vibrant Gujarat Global Summit held on January 10-12 in Gandhinagar, India. |
Vietnamese Deputy Prime Minister Tran Luu Quang said at the Vietnam-India Business Forum in the framework of the 10th Vibrant Gujarat Global Summit held on January 10-12 in Gandhinagar, India.
“There remains so much room to take economic ties to new heights in the time to come,” Quang said at the event, which brought together hundreds of Vietnamese and Indian businesses during his visit, the first high-ranking visit between Vietnam and India in 2024.
After nearly 40 years of Doi Moi (Renovation), he argued that Vietnam witnessed a GDP growth of more than 100 times to US$430 billion in 2023. The country has posted high economic growth rates for years. It has trade relations with more than 230 countries and territories, and has participated in 16 free trade agreements (FTAs) with more than 60 countries and ranks among the world’s top 20 in terms of trade.
In 2023, Vietnam’s economy expanded by 5.05%, compared to the world’s average rate of 2.9% and ASEAN’s 4.3%.
Over the past time, Vietnam-India relations, which are now at the level of comprehensive strategic partnership, have seen improvements in different fields with greater engagement by businesses from both countries. So far, many leading Indian companies are operating in Vietnam, and the support for trade and tourism, including direct flights, has fueled the country's economic ties.
However, Quang said that more efforts should be made to meet shared targets, adding that Vietnam is ready to create favorable conditions for the investment and operations of Indian businesses in the country. He also expected the Indian authorities to facilitate Vietnamese investors.
Stressing the role of businesses, Quang said Vietnamese and Indian companies are essential in the bilateral economic ties. Hopefully, they will work effectively to tap into the potential of the political status which is now at the highest level.
| Deputy Prime Minister Tran Luu Quang delivers a speech at the 10th Vibrant Gujarat Global Summit. |
Prospects
Commenting on Quang’s visit to India, Vietnamese Ambassador to India Nguyen Thanh Hai said it is significant for bilateral relations and underscored Vietnam’s policy of treasuring its relationship with India and endorsing agendas led by India that align with the interests of both countries as well as the international community.
Tran Luu Quang is Vietnam’s first high-ranking official to attend the Vibrant Gujarat Global Summit, and his visit in the early days of 2024 demonstrates Vietnam’s prioritization of relations with India and support for the South Asian nation’s global agendas.
Launched in 2003 under the visionary leadership of the then Chief Minister of Gujarat Narendra Modi, the biennial Vibrant Gujarat Global Summit gears up for a mega-investment summit with hundreds of executives. The 2024 summit, themed “Gateway to the Future”, focuses on vital topics such as energy, technology, climate action, and sustainable development.
In this context, Quang’s visit would enhance the relationship between senior Vietnamese officials and Indian businesses to concretize trade and investment opportunities with India and Gujarat in particular. Gujarat was a major center of Indian Ocean trade, and its capital at Anhilwara (Patan) was one of the largest cities in India. Gujarat is also home to many leading Indian, including Adani, the multinational conglomerate plans to invest US$10 billion in projects in Vietnam.
During the visit, Quang joined the inaugural session to share ideas on semiconductors, green hydrogen, space technology manufacturing, electric mobility, sustainable manufacturing, renewable energy, and Industry 4.0. He is scheduled to meet Indian Prime Minister Narendra Modi, Minister of Commerce and Industry Piyush Goyal, Gujarat’s Chief Minister Shri Bhupendra Patel, and many other high-ranking officials to discuss measures to make the trade target attainable.
The visit is expected to open up investment and partnership opportunities as Quang will visit leading Indian groups, including Adani, Zydus, SMS Pharmaceutical, UNO Minda.
According to Ambassador Nguyen Thanh Hai, two-way trade hit $13.2 billion between January and November 2023. There are currently 60 direct flights per week between Vietnam and India, 10 times more than the pre-Covid-19 period. The year 2023 marked the strongest growth in the number of Indian visitors to Vietnam, with more than 392,000 arrivals, up 230% from 2019, making India one of the top 10 tourist source markets for Vietnam.
Hai said the potential remains high and more practical measures must be taken to tap the resources. Among other things, it’s necessary to increase the number of direct flights to promote tourism and people-to-people ties. At the same time, it's important to increase high-ranking visit exchanges, further open the market for imported goods, trade and investment promotion, and offer incentives for information technology, seaports, renewable energy, processing industries, high-tech agriculture, and pharmaceuticals.
