Vietnam and India eye US$20 billion trade target

Facilitating market access for products, increasing development cooperation in strategic infrastructure, and launching more direct flights between the two sides are some of the solutions to the target, said Chinh at the Vietnam – India business forum in New Delhi on July 31.

He requested that Vietnamese ministries, agencies and localities strengthen dialogue to remove difficulties and obstacles for Indian investors in Vietnam, accelerate administrative reform, and prepare necessary conditions in terms of transport infrastructure, human resources, electricity supply, clean land fund to support investors.

He encouraged Indian businesses to expand investment in Vietnam and cooperate in training high-quality human resources, especially in the fields of semiconductors, science and technology, innovation, digital transformation, green transition, pharmaceutical manufacturing, renewable energy, and biotechnology.

The PM also asked the Indian businesses to support Vietnamese businesses in engaging in their value chains, while considering Vietnam a strategic destination for building research and development (R&D) centers and applying high technology.

According to the PM, after nearly 40 years of implementing the Renewal process, Vietnam has become one of the 40 largest economies and in the top 20 trading countries in the world. It has signed 16 free trade agreements (FTAs) ​​with more than 60 countries and blocs worldwide.

The country is synchronously putting in place solutions aimed at improving the business investment environment, enhancing economic competitiveness, simplifying administrative procedures, and removing difficulties to support people and businesses.

Thanks to those efforts, he said Vietnam’s business and investment environment is constantly improving. Last year saw the country attract nearly US$36.6 billion in foreign direct investment, an increase of 32.1% compared to 2022. About US$23.2 billion was disbursed last year, the highest ever.

He held that foreign-invested economic sector plays an important role in Vietnam, with a primary focus on selectively attracting foreign investment, and connecting the FDI sector and the domestic economic sector, while promoting public-private partnerships, mobilizing all development resources, and strongly developing the green economy, digital economy, circular economy, and knowledge economy.

Foreign investors’ success is of Vietnam’s success, stressed the PM, adding that economic-investment-trade cooperation will continue to be an important pillar in bilateral relations on the back of the long-standing friendship and the constant development of the comprehensive strategic partnership set up in 2016 between the two countries.

At the forum, the Prime Minister and delegates attended a ceremony to launch a new air route connecting Da Nang (Vietnam) and Ahmedabad (Gunjarat State, India) and to welcome the 200 millionth passenger of budget airline Vietjet.

The Prime Minister also witnessed the exchange of Memorandums of Understanding on cooperation between businesses of the two countries, including an MoU on cooperation in the fields of aviation, airport building and logistics between Sovico Group and Adani Group, an MoU on organizing the third Vietnam - India Friendship Festival between Vietnam Airlines and Innovations India, and an MoU on developing a pharmaceutical park between T&T Group and Ramky Group.