Indian firms are increasing their investments in Viet Nam. Indian enterprises poured over $230 million into Viet Nam last year, bringing their country's total progressive foreign direct investment in Viet Nam to more than $530 million. — Illustrative image/ Photo baodautu.vn

HA NOI (Biz Hub) — Viet Nam would create favourable conditions and offer incentives for Indian firms to invest in Viet Nam, said Vietnamese Ambassador to India Ton Sinh Thanh.

Economic ties were also the focus at events between Viet Nam and Belgium, and Viet Nam and Mexico held the same day in Brussels and Mexico, respectively.

The Vietnamese Embassy in India and the Federation of Indian Chambers of Commerce and Industry (FICCI) co-organised a conference entitled, "Invest Vietnam 2016" in New Delhi on Tuesday.

Speaking at a conference, Thanh highlighted the expanding Indian investment in Viet Nam and the great potential for investment links between the two countries' enterprises.

Viet Nam welcomes Indian companies to invest in the oil and gas industry, textiles, parts supply industries, pharmaceuticals, food processing, IT, mechanics, infrastructure development and renewable energy, he stated.

Viet Nam has participated in 12 free trade agreements (FTAs) and has become a major gateway for exports into many large markets such as the US, Japan and the European Union, he said, adding that Viet Nam is now an attractive destination for foreign investors.

Viet Nam commends the Indian Government for setting up its US$100 million special fund, which supports Indian companies to build production and supply chains in Cambodia, Laos, Viet Nam and Myanmar, Thanh said.

The Viet Nam-India Strategic Partnership has been strengthened in recent years, facilitating economic co-operation between the two countries, he added.

According to the ambassador, along with enhanced links in trade and tourism, Indian firms are increasing their investments in Viet Nam. Indian enterprises poured over $230 million into Viet Nam last year, bringing their country's total progressive foreign direct investment in Viet Nam to more than $530 million.

Vice Director of the Export Import Bank of India, Nirmit Ved, said there were many reasons for foreign partners to invest in Viet Nam, citing its rapid economic growth, strategic position in Southeast Asia and strengthened international economic relations.

Vietnamese representatives from the Foreign Investment Agency also introduced the country's fields of strength and the Vietnamese Government's preferential policies on tax and land leases.

On the same day at a conference in Brussels, Nabil Jijakli, an expert from the Credendo Group emphasised that Belgium should look to trade ties with Viet Nam, where stable politics stimulate economic growth.

Jijakli said Viet Nam's average growth rate above six per cent is a dream for many western countries.

According to him, the key to Viet Nam's success lies in its geographical location in Southeast Asia and literate young population. These factors help boost industrial development, particularly in the manufacturing sector.

However, Jijakli also noted challenges facing Viet Nam, including a slowdown in the global economy and neighbouring China – an economic powerhouse in Asia.

Participating businessmen praised the Vietnamese market, saying it has the potential for European investment in technology, the environment and manufacturing.

A seminar analysing achievements in Viet Nam's foreign policy, Doi Moi (Renewal), and international integration was also held in Mexico on Tuesday.

At the seminar, Ambassador Le Linh Lan briefed participants on major milestones in Viet Nam's regional and international integration, especially the country's role in the formation of the Association of Southeast Asian Nations (ASEAN).

The ambassador also expressed her joy at the strengthened co-operation between the two countries, especially in economics.

Two-way trade reached a record in 2015, hitting $2.23 billion, up 55.7 per cent year-on-year. In the first two months of this year, the figure was $320.46 million, up 32.17 per cent over the same period last year.

Participants of the seminar lauded Viet Nam's foreign policy, socio-economic achievements and its efforts to build a peaceful and prosperous nation. — VNS