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(VEN) - Many more Indian investors will come to Vietnam in the coming period. The statement was made by the president of Indian Business Chamber in Vietnam, Mohan Kumar, in a recent meeting between an Indian high-ranking business delegation and Vietnamese companies in Ho Chi Minh City.
The Indian business delegation led by the Indian Chamber of Commerce in Calcutta State consisted of leaders from eight Indian leading groups ( each posting more than US$7 billion in sales and operating in diverse fields of electrical engineering, energy, industrial machinery and equipment, iron and steel, finance, banking, property, tourism, pharmaceutical, healthcare, retail and general trading).
The head of the delegation, also the president of India Chamber of Commerce, V. Saran, said the major objective of the visit by Indian high-ranking delegation to Vietnam was to foster investment and trade relations between businesses in the two countries. India's 'Look East' policies, the signing of the India-ASEAN Free Trade Agreement in 2009, the partnership relations between the two countries in the Mekong River- the Hang River cooperation framework, the East Asia Summit, and particularly India's decision on recognizing the existence of a market economy in Vietnam have inspired Indian businesses to increase investment in Vietnam.
There were 38 Indian investment projects with a total registered capital of US$201 million in Vietnam in 2009, ranking 29 out of 79 countries and territories having investment in Vietnam. In Vietnam, Indian companies active in diverse fields such as information technology, pharmaceutical production, mineral, steel, chemical, agricultural production, education and services are extending their presence in Vietnam. Lately, an Indian company, Philips Carbon Black, got involved in a big project in a southern province of Ba Ria-Vung Tau.
The deputy secretary general of the Vietnam Chamber of Commerce and Industry (VCCI), cum director of HCMC branch office of VCCI, Vo Tan Thanh said there had been a lot of visits by Vietnamese and Indian top-ranking business delegations to each other country in the recent years, especially after Vietnamese Prime Minister called on India in 2007 and Indian President had a working visit to Vietnam in 2008. The bilateral trade value amounted to US$2.5 billion in 2008 against merely US$75 million in 1995, US$2 billion more than the target set by the two governments for 2010. The mutual trade value was around US$2 billion in despite the global economic recession.
Also in the meeting Indian general consult in Vietnam, Kuldeep Singh, said Vietnam was a magnet to Indian investors, and Vietnam and India featured interactive trade relations. India is well-known for good technical and management expertise, a wealth of experience in international trade and a vast consumer market (equal to the whole EU market). Indian visitors have increased in number steadily in the recent years. For its part, Vietnam has succeeded in many areas as it has become a big exporter of agricultural produce (cashews, coffee, tea, rice and seafood, etc.)
Vietnam has exerted great efforts to develop its infrastructure, particularly the highway system, upgrading seaports and handling facilities, and building airports and industrial zones. The country's stable social and political system, and hospitable people and responsible administrative organizations are beneficial factors to attract foreign investors, including Indians.
However, Mr. V. Saran said not many Vietnamese investors were seen in India. Therefore, it is importance to increase the presence of Vietnamese companies in India, particularly in the northeastern part. India also wants an increase of made-in-Vietnamese goods and Vietnamese visitors in the country. Through the Indian high-ranking delegation visit to Vietnam, Mr. V. Saran wanted businesses in the two countries to increase exchanges to boost exports to each other country. Vietnamese companies need to look seriously at the huge potential the Indian market has on offer./.
By Phung Long
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