The Foreign Investment Agency (FIA) and the Embassy of India in Vietnam cooperated with the Confederation of Indian Industry (CII) to hold the “India-Vietnam Business Meeting” on September 28.

The meeting aimed to strengthen investment cooperation between Indian and Vietnamese businesses in the industrial sector and to celebrate the 50th anniversary of the establishment of diplomatic relations (1972 to 2022) and six years of the relationship being upgraded to a comprehensive strategic partnership. 

Mr. Nguyen Anh Tuan, Deputy Director General of the FIA, said Indian investors have poured capital of $1 billion, or just 0.23 per cent of the total, into 340 projects in Vietnam, ranking it 24th among 139 countries and territories with investments in the country. Vietnamese enterprises, meanwhile, have invested in eleven projects in India with capital totaling $8 million, ranking it 44th out of 79 countries and territories investing in India. The potential for economic cooperation is significant, said Mr. Tuan Anh.

He also touched on bright spots in Vietnam as an investment destination, such as stable socio-economic conditions, an open economy, a young population, and a rapidly-growing middle class, while infrastructure continues to improve. It also has a key strategic location in the Asia-Pacific region, which is one of the most dynamic regions in the world. He cited assessments from international organizations that India will shortly become the third-largest economy in the world. With potential for economic development and long-standing relations between the two sides, Mr. Anh Tuan expressed a belief that cooperation could increase further.

“This business forum is happening as we celebrate 50 years of diplomatic relations,” said Mr. Anuj Kacker, Head of the CII. Trade between the two countries has increased substantially, from $200 million in 2000 to more than $13 billion in 2021. “Now is the right time for companies from both countries to take the bilateral economic relationship to the next level, becoming proactive in seeking opportunities, forming partnerships, and building strong ventures, and we hope that this message will be a small but important step in that direction,” said Mr. Kacker. Together, India and Vietnam can bolster cooperation in fields such as defense and security, trade and investment, and education, among others. 

According to the General Department of Vietnam Customs, bilateral trade reached $10.27 billion in the first eight months of 2022, an 18.7 per cent increase year-on-year, of which Vietnamese exports totaled $5.48 billion, up 38.62 per cent, and India’s exports totaled $4.79 billion, up 1.96 per cent. Vietnam therefore posted a trade surplus of $688.77 million.

Mr. Harish Taparia from Indian Business Chamber in Vietnam (INCHAM) said that, for Indian companies, Vietnam is an emerging and promising destination. He emphasized that “India is one of the fastest-growing large economies in the world, so there are ample opportunities for companies to cooperate together. Another recent milestone is direct flights being conducted between India and Vietnam, which present opportunities not just in tourism but also in business and trade.”

2022 is the 50th anniversary of the establishment of diplomatic relations between the two countries. Over the decades, despite complex fluctuations in the region and the world, the relationship has remained stable and constantly grown. Promoting multifaceted cooperation with India offers many benefits to Vietnam in both the immediate and long terms.