"Make in India": Open Opportunities for Vietnamese Investors

With a spectacular economic growth rate, India is now the third largest economy in Asia. The country gained success in many fields, especially low-cost manufacturing - a driving force for it to expand global production. Especially, the new Government of India is also making an effort to apply measures to promote economic growth, create an open investment environment and shape foreign investment policies to attract external investment capital.

 

The top objective that the campaign "Make in India" aims at is to create a very open and friendly investment environment to investors. The campaign focuses on appealing encouraging domestic and foreign investors to establish enterprises or joint ventures to make goods in India, for domestic consumption and for export. This country is attracting foreign investment capital into 25 priority industries, from aerospace and defence to automobile, tourism and hospital, thus helping potential domestic companies to develop into more powerful entities and attract capital, technologies and quality personnel from other countries. In addition, the campaign defines three important pillars that make changes in manufacturing field: Improving the business environment, boosting production and easing limits on foreign investment in key fields.

 

Indian Ambassador to Vietnam Shrimati Preeti Saran said the "Make in India" campaign is the chance for trade promotion agencies and business communities of Vietnam and India to boost cooperation in production and distribution of goods; improve the investment and business environment, thus positively contributing to the growth, stability and prosperity of the region and the world.

 

She affirmed that Vietnam will always be a great partner of India during its development process. She appealed to Vietnamese investors to see India as a fascinating investment destination and give more attention to exploring this potential market, especially in the field of infrastructure development, leather and footwear industry, materials, agriculture, tourism and services. For its part, the Government of India is committed to doing its best to support Vietnamese businesses to expand investment as well as provide favourable conditions for them to scale up business and production investment in India. This will help boost the strategic partnership of the two countries to a new level.

 

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, as of end-July 2014, Vietnam invested US$19 billion in 890 projects in 63 countries and territories. However, Mr Mohan Ramesh Anand, Chairman of the Indian Chamber of Commerce in Vietnam (Incham), said “Vietnamese investors invested only three projects worth US$23.6 million in India. This value is really well below the vast investment and cooperation potential of the two countries." He said Incham will not only support the "Make in India" campaign of the Government of India but also assist Vietnamese investors to seek business opportunities in India by providing free information about market and partners. It will also connect Vietnamese investors with Indian authorities and chambers of commerce.

 

Le Phuoc Vu, President of Hoa Sen Group (HSG) and Chairman of Vietnam - India Business Forum, said the potential of Vietnam - India economic cooperation is huge. If this potential is exploited, it will bring lot of benefits for both countries. He hoped that the launch of the "Make in India" campaign will further boost Vietnam - India relations and open up more prospects and opportunities for the bilateral strategic partnership.