“India and Vietnam will be celebrating 50 years of bilateral ties next year and to mark this occasion Vietnam Prime Minister will visit India along with a delegation of 200 people, including 100 businessmen in March 2022. WTC Mumbai can host this delegation and organize an interactive meeting with its members. The first bilateral project close to our heart is a proposed USD 500 million pharma park in Da Nang city. We are willing to provide incentives for Indian pharma companies to invest in this park, which is set to be the largest park of its kind outside India. We are in talks with pharma firms in Hyderabad and Gujarat to invest in this park,” said H.E. Mr. Pham Sanh Chau, Ambassador of Vietnam to India at an interactive meeting with WTC Mumbai.

Speaking about other potential sectors for collaboration, the Ambassador mentioned, “Vietnam exports USD 46 billion worth textile products annually, of which 80% value comprise of imported raw materials. India can supply cotton and other raw materials, which Vietnam imports from other countries. India can also supply footwear to the large Vietnamese market, which is currently dependent on imports. Vietnam invites Indian companies to operate its sea ports by buying 5-10% stake in these ports. Another area of collaboration is green energy as Vietnam aims to double share of renewable energy in power production to 20% in the coming years. India can supply thermal coal to Vietnam as 46% of power is generated through thermal power plants.”

The Ambassador invited Indian companies to set up petrochemical complex and crude oil refineries in Vietnam. He further highlighted potential for bilateral cooperation in auto components and tourism sectors. He informed, “Already Tata Motors and Ashok Leyland have shown interest to invest in the automobile sector in Vietnam. In future, we invite investment from Indian auto component manufacturers as Vietnam does not have a strong manufacturing base of auto spare parts. In the tourism sector, we are planning to launch direct flight connectivity between New Delhi and the Vietnam’s capital city of Hanoi.”

Speaking on this occasion, Mr. Bui Trung Thuong, Counsellor & Head of Trade Office outlined the potential for bilateral cooperation in six prominent sectors, viz. agriculture, aqua culture, medical and healthcare, environment, water and energy.

Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai pointed out, “The 50th year of India-Vietnam relation can be a landmark moment to build on mutual partnership. The current level of USD 11 billion bilateral trade is far below the true potential. I feel there is scope to enhance this trade volume to USD 25 billion in the coming years. The online bilateral exhibition organized by WTC Mumbai will promote bilateral trade and investment. In future, WTC Mumbai reaffirms its commitment to promote trade and investment with Vietnam by organizing joint exhibitions, exchange of trade delegation and other trade promotion activities. WTC Mumbai is also planning to hold a seminar with trade missions of all the ASEAN countries in future. Vietnam can play an important role in this event as it accounts for 15% of India’s exports to the ASEAN countries.”

Speaking about the potential areas and strategies to promote bilateral relations, Dr. Kalantri mentioned, “Indian companies can supply coal, textile and other products that are imported by Vietnam from other countries. Instead of competing with each other, both the countries can work together in complementary sectors. Both the countries can work on capacity building and sustainable development goals (SDGs). Vietnam can be a hub for India’s exports to EU, USA and other markets with a tariff benefit of upto 9% by using Vietnam’s free trade agreements (FTAs).”

Dr. Kalantri suggested that India can replicate the successful special economic zone (SEZ) model followed by Vietnam in promoting manufacturing. He said, “Vietnam is a focus country in India’s Act East Policy because it promotes ease of doing business in letter and spirit and it also has a successful SEZ model.”

Mr. Ajoykant Ruia, Vice Chairman, MVIRDC World Trade Center Mumbai proposed vote of thanks for the event.

The interactive meeting was held on the sidelines of the virtual bilateral exhibition launched by WTC Mumbai on October 2021 and which will be live till January 7, 2022. The focus sectors of the exhibition are: agro processing, green energy, home décor & textile, industrial machinery etc. It has so far attracted 55 exhibitors from Vietnam and 88 exhibitors from India.

The meeting was also addressed by senior officials from the trade mission of Vietnam in India, viz. Mr. Bui Trung Thuong, Counsellor & Head of Trade Office, Mr. Bui Anh Dung, First Secretary - Science & Technology Cooperation Office, Mr. Duong Duc Anh, Vice Consul, Consulate General of Viet Nam in Mumbai, Mr. Nguyen Luong Duc, Attache - Investment and Tourism and Mr. Pham Nhu Y, Attache - Consular Section.

The event was attended by senior officials from EXIM Bank of India, IDBI Bank and members of trade & industry.

(From left to right) H.E. Mr. Pham Sanh Chau, Ambassador of Vietnam to India and Dr. Vijay Kalantri, Chairman,
MVIRDC World Trade Center Mumbai