“Vietnam is the rising star of Asia, which will clock the highest economic growth of 6.8% in the region in 2022. A lot of Chinese companies are looking to invest in Vietnam as the global supply chain is realigning. In this critical moment, we have an open policy for India and we are keen to develop long lasting trade and economic relation with India. India is currently the 23rd trade partner of Vietnam and we want to enhance this to 15th position in the near future. In the course of time, we want India to replace China as the prominent trade partner of Vietnam. Even amidst the COVID pandemic, India-Vietnam trade grew from USD 12 billion in FY20 to USD 14 billion in FY22,” said Mr. Duong Duc Anh, Vice Consul, DCM, Consulate General of Vietnam in Mumbai, at an interactive meeting on ‘Trade & Investment Opportunities between India and Vietnam’. The event was organised by All India Association of Industries (AIAI), MVIRDC World Trade Center and Invest Global, which is a Vietnam-based trade, investment and tourism promotion body.
Mr. Anh suggested Indian companies to consider Vietnam as gateway to the world market as Vietnam has signed almost 20 trade agreements, including mega trade deals such as RCEP, CPTPP and trade agreement with European Union.
Mr. Anh invited Indian companies to invest in the pharmaceutical park dedicated for Indian companies in Vietnam. Government of Vietnam is developing a pharmaceutical park on 600 hectare for Indian drug companies. “I assure that this park will help Indian drug companies to be recognized across the globe because of the excellent connectivity and numerous trade agreements of Vietnam.”
Mr. Anh pointed out that energy, pharmaceuticals, IT, agriculture are potential sectors for two-way trade between India and Vietnam.
Earlier in his welcome remarks, Dr. Vijay Kalantri, President – All India Association of Industries (AIAI), and Chairman – MVIRDC World Trade Center Mumbai, pointed out that India and Vietnam would be able to double their trade volume from USD 15 billion to 30 billion if a Rupee-Dong trade settlement mechanism is introduced on the lines of the Rupee-Ruble and Rupee-Rial trade mechanism.
Dr. Kalantri suggested Invest Global to promote partnership in ship repairing, marine infrastructure and other port-related services given the vast coastline and low-cost base of both the countries compared to other Asian nations.
Dr. Kalantri raised hope that both the countries can enhance two-way trade through exchange of trade delegation and trade mission. He suggested invest Global to focus on four sectors to start with, namely, pharma, IT, agro and textile. He also suggested Vietnam companies to impart skills to Indian workforce so that they can be employed in education, healthcare and other sectors in Vietnam. Finally, Dr. Kalantri remarked that the dedicated pharma park set up for Indian companies in Vietnam would help Indian pharma brand to gain global recognition.
During the event, Ms. Nguyen Thi Thu Ha, General Director of Invest Global, made a presentation on how her organisation can facilitate Indian companies foray into the Vietnamese market by helping them find right partners, liaisoning with Vietnam Government for licensing and statutory approvals, etc.
A key highlight of the session was the signing of Memorandum of Understanding (MoU) between AIAI and Invest Global to promote trade, investment, technology and other forms of co-operation between both the countries.
The meeting was attended by members of trade & industry, financial institutions, academia and consular corps.