On the occasion of the study-tour and market survey to Vietnam by the delegation of eight Indian businesses during December 22-25, Rajeev Garg, President of Indian Chamber of Commerce and Industry (InCham), talked with the press about the bilateral trade and investment cooperation.
What will be the opportunity of economic and commercial cooperation between Vietnam and India when the FTA between India and the ASEAN is signed early 2009?
When the India-ASEAN FTA is completed, the chance of economic cooperation between India and ASEAN members will grow considerably.
India is seen to be the world’s great workshop, so the demand for materials and other products from ASEAN countries is very substantial. When the Agreement is signed, many commodities from ASEAN members in general and from Vietnam in particular will have easier access to Indian market. Vietnam’s agricultural produce has good quality and affordable price that can be exported in great volume. In addition, Vietnam can increase export of electronics, refrigeration electronics, and computer components, that India has high demand. Other commodities such as minerals, cement, construction materials, etc. are what India is in extreme need during the process of development but has limited sources. I think Vietnam and India still have a lot of potential economic and commercial cooperation opportunities.
What is your opinion about investment performance of Indian enterprises in Vietnam and obstacles they encounter doing business in Vietnam?
I highly appreciate the friendly investment environment in Vietnam. Many Indian businesses show their investment interest in Vietnam. As of mid-December, India has 30 valid projects with registered capital of more than US$195 million, ranked 31 out of 84 countries and territories investing in Vietnam. Many Indian investors also visited Vietnam to study and develop software technology.
However, the legal corridor in Vietnam remains ambiguous and has bad impacts on Indian enterprises’ business. In addition, language is also a great barrier in bilateral economic cooperation and exchange.
How do you evaluate the impacts of financial crisis to bilateral commercial cooperation and forecast of trade turnover between the two countries next year (2009)?
The global financial crisis does not affect much the bilateral trade this year and next year.
As of end-October 2008, two-way trade turnover has reached US$2.1 billion, exceeding last year’s US$2 billion, in which India’s export is worth US$1.8 billion, Vietnam’s export is US$300 million.
In 2009, bilateral trade turnover is predicted to be US$2.5 billion as the commodities exported and imported between the two countries are all essential such as pharmaceuticals, materials for cattle food.
Giang Tu
Vietnamese
