Brian Jeffrey
Over the years, trade between Vietnam and India has seen significant growth, rising from 200 million USD in 2000 to nearly 15 billion USD in the previous year, with Vietnam’s exports contributing 8.5 billion USD to this figure. India presently has 410 active investment projects in Vietnam totaling 1.03 billion USD, making it the 25th largest investor in the country. In contrast, there are 16 Vietnamese-funded projects in India valued at over 14 million USD. Prime Minister Chinh highlighted five key factors for successful business cooperation between the two nations, emphasizing the importance of strong bilateral relations, political trust, open markets, shared cultural ties, and a common goal of economic development.
Reflecting on Vietnam’s progress, Prime Minister Chinh noted that the country has emerged as one of the top 40 global economies, ranking among the top 20 trading nations and 32nd in terms of national brand value. Vietnam has also signed 16 free trade agreements with more than 60 countries. The Prime Minister acknowledged the improved investment climate in Vietnam, with the United Nations Conference on Trade and Development recognizing it as one of the top 20 FDI destinations globally. Vietnam sees the foreign-invested sector as pivotal and encourages Indian businesses to invest in areas of mutual interest, including high technology, renewable energy, biotechnology, and pharmaceuticals.
Despite the potential, bilateral economic cooperation has room for growth. The Prime Minister called for increased support from Indian ministries and organizations to facilitate investment dialogues, assist Vietnamese businesses in expanding their operations in India, and enhance market access for Vietnamese products. He urged Vietnamese authorities to address obstacles faced by Indian investors, streamline administrative procedures, and reduce compliance costs to attract more foreign investment. The Vietnamese Government remains committed to supporting foreign investors, including those from India, to ensure a conducive and sustainable business environment in Vietnam.
During a forum attended by PM Chinh, companies from both countries signed six cooperation agreements spanning aviation, tourism, culture, and pharmaceuticals. Additionally, Vietjet Air announced the launch of a new route from Da Nang, Vietnam, to Ahmedabad, India, marking a milestone with its 200 millionth passenger. The new flight route will commence operations in October, offering increased connectivity between the two nations with 56 weekly flights across seven routes.
