Vietnam keen to sign comprehensive economic pact with India

Vietnam keen to sign comprehensive economic pact with India Vietnam seeks India’s partnership to attain double digit economic growth “Vietnam is keen to deepen its 2,000year old civilizational links with India. Vietnam Prime Minister Mr. Pham Minh Chinh became the second foreign state leader to visit India after Prime Minister Mr. Narendra Modi assumed office for the 3rd term. This reflects the importance of India in Vietnam’s foreign policy. We are seeing remarkable interest from Vietnamese companies to invest in India. Vietnam’s electric vehicle maker VinFast plans to invest USD 2 billion in India. Also, we will soon launch network of Vietnamese companies in India as many companies from software, agriculture, petrochemicals, airlines, electronics and agriculture are planning to invest in India. In order to deepen our commercial ties, Vietnam government has proposed to sign comprehensive economic partnership agreement with India,” H. E. Mr. Nguyen Thanh Hai, Ambassador of Vietnam to India at an interactive meeting at WTC Mumbai. The event was organized by AIAI and WTC Mumbai. H. E. Mr. Hai informed, “Last year, Vietnam government’s commerce ministry sent a proposal for a comprehensive economic partnership agreement to broaden our collaboration beyond goods trade to finance, intellectual property, services, investment and mobility. We are awaiting response from the Indian government. Also, both the countries are working to open each other’s markets for agro products such as grapes, pomegranate and other crops. The central banks of both the countries are working to operationalize alternative cross-border payment system to facilitate trade settlement and other transactions.” The Ambassador pointed out to the rapidly growing Vietnamese economy and the ongoing government reforms to improve governance efficiency and improve investment climate. He said, “Vietnam economy grew 7% last year and it is expected to grow 8% this year. We seek India’s support in taking this growth to double digit. Vietnam government is committed to reduce bureaucratic red tapism and improve ease of doing business by adopting a slim, effective and efficient administration. As part of this efforts, the number of ministries will be reduced from 19 to 14. Also, the number of local governments will be reduced from 10,500 to 2,500.” In the tourism and connectivity sectors, the Ambassador mentioned, “There is 26% annual growth in Indian tourist arrivals to Vietnam. More than 5 lakh Indian tourists visited Vietnam last year and soon we expect this to touch 10 lakhs.  Similarly, Vietnamese are keen to visit India’s Buddhist pilgrimages. The number of weekly flights has grown from 6 before COVID to 74 now and in the coming year this will grow to 82.” The Ambassador remarked that the prospect for bilateral cooperation is bright as India is the 5th largest economy and it is set to become 3rd largest in the coming years. India and Vietnam will organize Startup week at Delhi on April 2 to strengthen tie-up in technology sector. He said, “Vietnam has learnt from India’s successful experience in green revolution in the past. Also, Indian movies were the first to be broadcast in Vietnam after Vietnam liberalized its economy. India has also supported Vietnam in its Independence movement. We can leverage our close cultural and religious affinity to strengthen economic relations in future.” Earlier in his welcome remarks, Dr. Vijay Kalantri , President, President All India Association of Industries (AIAI) and Chairman, WTC Mumbai mentioned, “India and Vietnam should not compete with each other; but learn from each other and collaborate in complimentary sectors. India can learn from the successful SEZ model of Vietnam for industrial development. India can allocate dedicated special economic zones (SEZs) and technology parks to attract investment from Vietnamese companies and also promote technology collaboration and joint ventures.” Dr. Kalantri suggested that India has announced 99 Smart Cities and out of this one of them can be dedicated for Vietnamese companies to invest and promote joint ventures with Indian counterparts. The current bilateral trade of USD 15 billion is far below potential and we can grow this beyond USD 20 billion by identifying focus sectors and exchange trade delegations in these sectors. Many Indian companies have invested in Vietnam directly and also indirectly through Dubai, Singapore and other financial hubs. We need to attract Vietnamese investment into India.” Dr. Kalantri also informed about the role of WTC Mumbai in promoting international trade and economic growth by leveraging the global network of 320 WTCs across nearly 100 countries. He assured the Ambassador all possible support to promote two-way trade and investment by facilitating exchange of delegation and participation of Vietnamese companies in Indian exhibitions and trade fairs. Dr. Kalantri also pointed out that the tremendous opportunities in tourism cooperation, especially by promoting spiritual tourism to Hindu temples in Vietnam and also showcasing Vietnam as a potential wedding destination for Indian tourists. Speaking on this occasion, Ms. Rupa Naik, Executive Director, WTC Mumbai suggested Vietnamese companies to exhibit their products and services in India to gain foothold in the Indian market. Ms. Naik also suggested the Ambassador to lead a business delegation at WTC Mumbai’s upcoming flagship event Global Economic Summit (August 20-22, 2025) to explore Indian market. The meeting was also graced by Mr. Le Quang Bien, Consul General of Vietnam and senior officials from the consulate. Ms. Priya Pansare, Director, Trade & Investment Promotion, WTC Mumbai and Ms. Aakruti Bagwe, Director - Operations, WTC Mumbai also graced the occasion.    H. E. Mr. Nguyen Thanh Hai, Ambassador of Vietnam to India felicitated by Dr. Vijay Kalantri, President All India Association of Industries (AIAI)  and Chairman, WTC Mumbai. H. E. Mr. Nguyen Thanh Hai, Ambassador of Vietnam to India (4th from left) felicitated by Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, WTC Mumbai (5th from left). also seen in the photograph (from left to right): Ms. Sangeeta Jain, Senior Director, AIAI, Ms. Aakruti Bagwe, Director - Operations, WTC Mumbai, Mr. Le Quang Bien, Consul General of Vietnam, Capt. Ramesh Gulati, Member, Council of Management, WTC Mumbai, Ms. Rupa Naik, Executive Director, WTC Mumbai and Ms. Priya Pansare, Director, Trade & Investment Promotion, WTC Mumbai.