The Ministry of Planning and Investment’s Foreign Investment Agency (FIA) and the Indian Business Association in Viet Nam (INCHAM) inked a memorandum of understanding (MoU) on investment promotion on Wednesday in Ha Noi.

The MoU was signed on the occasion of the 45th anniversary of the establishment of diplomatic relations between Viet Nam and India, baodautu.vn reports. Following the MoU, the two sides will join hands to support the two business communities invest in each other’s country with a focus on organising investment seminars and business collaboration events besides exchanging investment opportunities.

Speaking at the signing ceremony, head of FIA Do Nhat Hoang said Viet Nam always considered foreign direct investment as the main driver to speed economic growth and economic reform. Thus, the Government had drawn up many effective solutions to improve the country’s investment climate to attract more foreign investors, including those from India.

Hoang said he hoped the MoU would help facilitate Indian investment in Viet Nam and vice versa, contributing to strengthening bilateral relations.

In his speech, he also spoke highly on the significant development of the bilateral relationship over the past years.

The two countries have upgraded their relationship status to a comprehensive strategic partnership; however, two-way trade has currently reached some US$5 billion, lagging behind the potential of the two nations.

In terms of investment, India is now Viet Nam’s largest source of FDI in Central and Western Asia, with 164 projects worth over $755 million. Indian investment was mainly in the manufacturing and processing industry, information technology and mining. — VNS