Embassy of India

Hanoi, Vietnam

??c b?n ti?ng Vi?t c?a bài ph?ng v?n t?i ?ây.

For Vietnamese version, please read here.

1. What are your opinions about the economic relationship between Viet Nam and India?
   Economic and commercial ties between India and Vietnam are an important pillar of the Comprehensive Strategic Partnership between the two countries. There has been a steady growth in bilateral economic engagement over the years. From a meager US$200 million in year 2000, our bilateral trade has grown to nearly US$13 billion in 2019. India is today Vietnam’s seventh largest trading partner. For India, Vietnam is the fourth largest trading partner in ASEAN. As two fast growing economies and countries aspiring for deeper integration with world and regional economies, there is a huge potential for our economic engagement waiting to be tapped.

2. How do you rate the investment from India to Vietnam and from Vietnam to India?
   According to official statistics based on invested capital, Indian investment in Vietnam as of 2019 is close to US$ 925 million. If you include Indian investment coming through third countries, then this number grows to nearly two billion dollars. Indian companies have invested in Vietnam mostly in the areas of energy, mineral exploration, agro-processing, agro-chemicals, IT, auto components etc. In comparison, Vietnamese investments in India are modest at currently around US$ 30 million covering areas such as pharmaceuticals, building materials and chemicals. We are encouraging businesses in Vietnam to look at India as a preferred investment destination.

3. In what areas do you think India can invest more in Vietnam?
   Given India’s capabilities and Vietnam’s priorities, Indian companies are looking to invest in Vietnam in sectors like energy, including renewable energy, IT, pharmaceuticals, infrastructure development, automotive industry etc.

4. How India and Vietnam can promote trade during Covid-19?
   Covid-19 has disrupted established supply chains for manufacturers based in both India and Vietnam. As we deal with this challenge, there is also an opportunity for our businesses to explore alternative supply chains located in each other’s country. As a large economy, India is willing to step forward and plug some of the supply chain gaps for our partner countries. These open up new opportunities. For example, in areas like agro-products, textile and garments, machineries etc., suppliers and manufactures in India and Vietnam can establish new partnerships to diversify their supply chains.

5. India has a big and growing start-up community and a number of unicorns. Vietnam also wants to develop its start-ups. What can Vietnam learn from Indian experience? Is there some potential cooperation between start-up communities between the two sides?
   India has one of the world’s largest start-up ecosystems driving technology and innovation, attracting new investments and generating tens of thousands of direct employment. According to our industry estimates, India today hosts nearly 9000 start ups with 24 unicorns valued at over US$ 1 billion. Government of India’s ‘Stratup India’ mission has been proactively creating an enabling environment for development of start-ups and harnessing the large pool of talent with innovative ideas. Vietnam, too, is increasingly focused on innovation to improve productivity, and its Stratup industry is well-recognised. This is certainly an area of significant potential where we may learn from each other’s experiences, policies and enabling environments, as well as explore collaborative partnerships in areas such as IT services, e-commerce, fintech, healthcare services, logistics etc.

6. You mentioned about Indian $1 billion credit for Southeast Asian countries where Vietnam is included. Can you tell more about it and how Vietnam can benefit from it?
   India has announced a concessional Line of Credit of US$1 billion for ASEAN countries to develop connectivity infrastructure, both physical and digital connectivity, as part of our commitment to seek closer integration with ASEAN. Connectivity is an important dimension of India’s Act East Policy and the Indo-Pacific vision. It is also a priority under ASEAN’s Outlook on Indo-Pacific. Connectivity therefore provides a strong basis for cooperation between India and Vietnam as well as other ASEAN partners to promote closer economic cooperation, seek shared prosperity and enhance people-to-people exchanges.

7. What are your expectations for economic development between the two sides?
   I am very optimistic about the prospects of our economic partnership. As two fast growing economies and as two youthful and aspiring societies, there is a huge potential for our economic engagement. As India strives to become a US$5 trillion economy, the demands and capacities it would generate will offer significant economic opportunities for partners like Vietnam. We are proactively focused on enhancing the economic dimensions of our engagement, with regular visits of officials and business delegations taking place in both directions. Our Embassy in Hanoi and Consulate in Ho Chi Minh City are constantly at work to bring our business communities closer together and help them explore new opportunities. The recent launch of direct flights between our two countries is another positive development that will hopefully encourage businesses on both sides to work on their complementarities and push the level of our economic ties.

Read here.