New Delhi, July 31, 2024
Vietnamese Prime Minister Pham Minh Chinh has called for enhanced economic cooperation between Vietnam and India, targeting a robust $20 billion in bilateral trade. Addressing the Vietnam-India Business Forum, organized by FICCI and the Embassy of the Socialist Republic of Vietnam, PM Chinh highlighted Vietnam's significant economic achievements and extended a warm invitation to Indian businesses to invest in key sectors such as infrastructure, digital technology, and pharmaceuticals.
In his speech, PM Chinh underscored the enduring friendship between Vietnam and India, a relationship that has flourished for over 2,000 years. He proposed advancing bilateral relations to a comprehensive strategic partnership, which he believes has "opened up new avenues for collaboration across various fields."
The Prime Minister reiterated Vietnam's commitment to its foreign policy of independence, self-reliance, and multilateralism. He described Vietnam's goal to be "a good friend and reliable partner to all nations and a responsible member of the international community."
PM Chinh specifically encouraged Indian businesses to invest more in Vietnam, focusing on high-impact areas such as semiconductors, science and technology, innovation, digital transformation, green hydrogen, pharmaceuticals, renewables, and biotechnology. He noted that Vietnam currently sources 33% of its pharmaceuticals from India and expressed interest in developing "a robust pharmaceutical ecosystem in Vietnam to safeguard public health."
The Prime Minister also urged Indian companies to integrate Vietnamese firms into their supply chains and to view Vietnam as a strategic investment destination. He revealed that several Indian companies have already committed to investing in Vietnam and expressed hope for ongoing and expanded cooperation.
Jitin Prasada, Union Minister of State for Commerce & Industry; Electronics and Information Technology, echoed the call for deeper economic ties, highlighting the complementary nature of the growth strategies of both countries and the mutual benefits that could arise. He emphasized that both India and Vietnam are growing at nearly double the global average and are keen to enhance their manufacturing capabilities and global economic roles.
Minister Prasada called for greater attention to bilateral trade opportunities, acknowledging that while global markets are crucial, the potential for growth in trade between India and Vietnam should not be underestimated. He also noted India's recent role as the guest of honor at the 33rd Vietnam International Trade Fair in Hanoi, reflecting the strengthening economic relationship between the two nations.
"I believe our businesses need to focus on each other more than they currently do," Prasada urged. He expressed the Indian government's commitment to fostering business linkages between India and Vietnam.
He also mentioned ongoing trade negotiations, including the review of the India-ASEAN Trade and Goods Agreement of 2009 and the Indo-Pacific Economic Framework, which could further enhance economic cooperation.
In his welcome address, Sandip Somany, Past President of FICCI and Chairman & Managing Director of Somany Impresa Group, emphasized the strong economic bond between India and Vietnam. He noted that bilateral trade has reached $14.8 billion, with ample room for further growth. Somany highlighted key areas for collaboration, including agriculture, pharmaceuticals, ICT, renewable energy, and tourism, particularly Buddhist-centric and destination weddings. He also stressed the significance of cultural exchanges and people-to-people contacts in fostering mutual understanding.
The event also marked the launch of a new direct flight between Da Nang, Vietnam, and Ahmedabad, Gujarat, India.
Several Memoranda of Understanding (MoUs) were signed during the event, including:
1. Vietnam Airlines and Innovations India – Cooperation in activities related to the film "Love in Vietnam" and the 3rd edition of the India-Vietnam Festival of Friendship – Namaste Vietnam Festival 2024.
2. Sovico and Adani – Collaboration in the aviation, airport, and logistics sectors.
3. T&T Group and Ramky Group – Master Partnership Agreement for developing, financing, constructing, operating, and maintaining a Waste Treatment Plant.
4. T&T Group and Ramky – Cooperation on a pharmaceutical industrial park.
5. Invest Global and Crescendo Worldwide** – Promotion of trading activities.
6. Invest Global and ARTIA – Promotion of trading and investment.
7. Invest Global and GCCI – Promotion of trading and investment.
8. Invest Global and FII – Promotion of trading and investment.
9. Hoang Lam Pharmaceutical and Cosmetics JSC and STEMPEUTICS Research** – Distribution of STEMPEUTICS products and collaboration on stem cell technologies in Vietnam, including setting up a laboratory.
These agreements signal a promising future for Vietnam-India economic relations, fostering growth and collaboration across multiple sectors.
PM Pham Minh Chinh underscored five crucial, fundamental factors for businesses from Vietnam and India to cooperate successfully and effectively. They include good traditional friendship; high political trust; open market; similar culture and civilization; compatible ideas; and same desire to build a strong, prosperous country with rapid and sustainable economic development.
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