Recently, Indian Embassy, Indian Business Association in conjunction with VCCI and Hanoi People’s Committee organised a seminar on Indian investment and trade. It is an important event to promote trade and investment between India and other countries.
The conference “India Calling” was first organized in Singapore in 2005 and then each year in other countries. This year, it comes to Vietnam. According Indian Ambassador Ranjit Rae, Vietnam, a dynamic economy with young population, is an emerging and promising market. It is also a pillar in India’s Look East policy.
After Vietnam and India signed bilateral agreement on “strategic partnership” in 2007, agreements on non-double taxation and investment protection, the relations between the two countries have developed significantly. Bilateral trade increased from US$100 million in 1991 to nearly US$3 billion in 2010. In the first 8 months of 2011, it increased 43 percent compared to that of the same period last year, attaining at US$2.4 billion in the conditions of the world economic recession. It is an impressive figure showing the great potentials of the two markets of big population. The two economies share common grounds of stable agricultural foundation and high growth of urbanization. India is world famous in cotton export and Vietnam imports for garment industry. Both countries are developing infrastructure to attract foreign investments. Indian businesses are present in Vietnam and making the best use of business opportunities. This year, over 40 Indian businesses come and do business with Vietnamese partners. It is also a great opportunity for Vietnamese businesses to develop business activities and investments with India especially in agriculture, logistics, education, health and information technology that India is leading in the world.
Many Indian companies have expanded investments in Vietnam as the production cost is lower than in India. Mr. Nikhilesh Deshpande, Director General of Mega Life Sciences Vietnam said that Mega has invested US$2 million in storage for pharmaceutical companies in Vietnam. “We are considering direct investment or joint venture with Vietnam”, he said.
Representative of Hiranandani Constructions Company said that his company is looking for investments in real estate, hotels, health service and other businesses in Vietnam.
Early this year, Marico group (India) has entered Vietnamese market with 85 percent of shares in ICP (international company of furniture) while KCP (India) expanded investment in sugar industry in Phu Yen.
According to Mr Bhavna Doshi, President of Indian Business Association, Vietnam is becoming a main destination for Indian investments. Indian businesses have increasing interests in Vietnam. Energy companies such as ONGC, Reliance and Essar are ready to invest in gas and oil exploitation and processing in Vietnam.
Business representatives of the two countries have reaffirmed the great potentials and determination to attain the target of US$7 billion in 2015 when free trade agreement between India and ASEAN will facilitate the process.
Le Hien
Vietnamese
