Prime Minister of Vietnam Calls for Stronger Economic Ties with India, Targets $20 Billion Bilateral Trade. Review of the India-ASEAN Trade and Goods Agreement of 2009, to be completed by 2025: Jitin Prasada, Union Minister of State for Commerce & Industry; Electronics and Information Technology

Jul 31, 2024

NEW DELHI. July 31, 2024: Vietnamese Prime Minister Mr Pham Minh Chinh has called for stronger economic cooperation between Vietnam and India, setting an ambitious target of $20 billion in bilateral trade. Speaking at the Vietnam-India Business Forum, organised by FICCI and the Embassy of the Socialist Republic of Vietnam, Prime Minister Chinh outlined Vietnam's economic achievements and invited Indian businesses to invest in strategic sectors such as infrastructure, digital technology, and pharmaceuticals.

 

In his address, PM Chinh emphasised the longstanding friendship between Vietnam and India, dating back 2,000 years. He highlighted upgrading bilateral relations to a comprehensive strategic partnership, which he said has "opened up a new space for cooperation across the board."

 

The Prime Minister emphasised Vietnam's foreign policy of independence, self-reliance, and multilateralism, stating that the country aims to be "a good friend and reliable partner of all countries around the world, and a responsible member of the international community." 

 

Prime Minister Chinh invited Indian businesses to invest more in Vietnam, particularly in semiconductors, science and technology, innovation, digital transformation, green hydrogen, pharmaceuticals, renewables, and biotechnology sectors. He noted that Vietnam currently sources 33% of its pharmaceuticals from India and expressed interest in establishing "a proper pharmaceutical ecosystem in Vietnam to help protect the health and life of our people."

 

The Prime Minister also called for Indian businesses to facilitate Vietnamese companies' integration into their supply chains and urged Indian businesses to consider Vietnam to be a strategic destination. Mr Chinh revealed that he had met with several Indian companies that have pledged to invest in Vietnam. He welcomed these commitments and expressed hope for continued investment and cooperation.

 

Speaking on this occasion, Mr Jitin Prasada, Union Minister of State for Commerce & Industry; Electronics and Information Technology, called for stronger economic cooperation between India and Vietnam, emphasising the complementary nature of their growth strategies and the potential for mutual benefit. 

 

Mr Prasada highlighted the economic synergies between India and Vietnam, noting that both countries are growing at nearly double the average global economic growth rate. "Both our countries are focused on improving our manufacturing prowess and playing a greater role in the global value chains and world economy," he said.

 

The minister called for increased attention to opportunities in each other's markets, pointing out that while larger global markets are important, the potential for bilateral trade should not be overlooked. He mentioned India's recent participation as the guest of honour at the 33rd Vietnam International Trade Fair in Hanoi, indicating growing economic ties between the two nations.

 

"I believe that our businesses should really need to focus on each other, much more than we are doing presently," Prasada urged. He expressed the Indian government's desire to promote and support business linkages between the two countries.

 

The minister mentioned ongoing trade negotiations, including the review of the India-ASEAN Trade and Goods Agreement of 2009, set to be completed by 2025, and the Indo-Pacific Economic Framework negotiations. These could further enhance economic cooperation between India and Vietnam.

 

In his welcome address, Mr Sandip Somany, Past President, FICCI & Chairman & Managing Director, Somany Impresa Group, highlighted the strong economic bond between India and Vietnam. He noted bilateral trade has reached $14.8 billion, with potential for further growth. Mr Somany emphasised complementary trade benefits and increasing investments in various sectors. He identified agriculture, pharmaceuticals, ICT, and renewable energy as key areas for collaboration. Tourism, particularly Buddhist-centric and destination weddings, was highlighted as a promising engagement area. Mr Somany further stressed the importance of cultural exchanges and people-to-people contacts in strengthening mutual understanding.

 

The event also saw the launch of the direct flight between Da Nang, Viet Nam and Ahmedabad, Gujarat, India. 

 

In addition, several MoUs were announced during the event. These included: 

 

1.      MOU between Vietnam Airlines and Innovations India in cooperative activities related to the film Love in Vietnam and the 3rd edition ò the India – Vietnam Festival of Friendship – Namaste         Vietnam Festival 2024

2.      MOU between Sovico and Adani on cooperation in Aviation, Airport and logistics industry.

3.      Master Partnership Agreement between T&T Group and Ramky Group on developing, financing, constructing, operating, and maintaining the Waste Treatment Plant.

4.      MOU between T&T Group and Ramky on cooperation about the pharmaceutical industrial park.

5.      MOU between Invest Global and Crescendo Worldwide on promoting trading

6.      MOU between Invest Global and ARTIA on promoting the trading and investment

7.      MOU between Invest Global and GCCI on promoting the trading and investment

8.      MOU between Invest Global and FII on promoting the trading and investment

9.      MOU between Hoang Lam Pharmaceutical and Cosmetics JSC and STEMPEUTICS Research on distributing STEMPEUTICS products and applying new technologies and techniques (stem cells) in    Vietnam, as well as collaborating to set up a Lab in Viet Nam