In a bid to expand economic cooperation relations and create business opportunities for domestic and foreign enterprises, the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI - HCM) recently collaborated with the Federation of Indian Chambers of Commerce and Industry (FICCI) to organise the “Vietnam – India Trade Forum.” This is a chance for enterprises of the two nations to study, exchange information and establish long-term business and investment cooperation.
At the meeting, Mr Vo Tan Thanh, Director of VCCI – HCM, said the relations between Vietnam and India have flourished in many aspects in the past years. The two sides agreed to declare 2012 the Year of Vietnam - India Friendship to commemorate the 40th year of bilateral diplomatic relations (January 7, 1972 - 2012) and the 5-year Strategic Partnership (July 6, 2007 - 2012). India will host the “Indian Year in Vietnam” in 2012 with many cultural events like art shows, film festivals, cuisine contests, and picture galleries in many cities in Vietnam.
Along with cooperation in investment, culture, education, security and defence, trade relations between Vietnam and India have flourished. Two-way trade revenues rose from US$72 million in 1995 to US$1 billion in 2006. In 2010, the value climbed to over US$2.7 billion, up 34.4 percent from 2009 and US$3.9 billion in 2011, up 42 percent year on year (India’s exports expanded up 33 percent; Vietnam's exports climbed 57 percent). India’s key exports included materials for animal feed production, mobile phones, machinery, equipment, garment and textile materials. Currently, India is ranked amongst the 20 top importers of Vietnam’s goods and a top 10 supplier of goods for Vietnam.
The two-way trade turnover is expanding and the trade gap is narrowing. The bilateral trade revenue is expected to reach US$7 billion in 2015. Mr Thanh hoped India would always create favourable conditions for Vietnam's goods to enter its market, thus helping Vietnam gradually balance the trade gap.
Minister of Commerce and Industry and Textiles Anand Sharman said cooperation potential between Vietnam and India is huge. He proposed that the Government of Vietnam set up a committee to resolve any difficulties in cooperation to tap this potential, particularly in the fields of energy, information technology and pharmacy. He expressed his desire to foster cooperation with Vietnam in IT application, pharmaceuticals and energy.
Indian Consul General in Ho Chi Minh City, Abhay Thakur, said many leading Indian companies operating in agricultural equipment, pharmaceutical materials, metals, engineering, consumer goods and motorcycles joined the business delegation to Vietnam. India wants to elevate the strategic level of bilateral cooperation relations with Vietnam to a new high, while Vietnam is considered an important gateway to penetrate the South China Sea area. He asserted that the target of US$7 billion of bilateral trade revenue in 2015 will be easily achieved because the India - ASEAN Free Trade Agreement has been brought into force. Especially, Vietnam and India also signed many important agreements, such as double taxation avoidance and investment protection.
Mr Le Manh Ha, Vice Chairman of Ho Chi Minh City People’s Committee, said: HCM City attracted about 35 percent of total foreign investment projects in Vietnam. Through this economic forum, Indian businesses could explore the market demand and investment environment in the largest economic centre of Vietnam. To boost development efficiency, the city will proactively expand international cooperation, take advantage of external resources, and enhance trade with other countries in the world, including India. The city government will strive to remove difficulties and problems facing investors and create comfortable environment for Indian companies to do business, aiming to become a favoured destination for Indian enterprises in the future.
Binh Nguyen
Vietnamese
