Prime Minister Phạm Minh Chính affirmed that Việt Nam always encourages Indian enterprises to expand investment in sectors that are India's strengths, such as technology and pharmaceutical sectors.

Those are also sectors that Việt Nam needs to develop, Chính said at the Việt Nam-India Business Forum held in New Delhi on July 31, as part of his ongoing state visit to India.

The PM also said that after nearly 40 years of renewal, Việt Nam has become one of the 40 largest economies in the world and one of the top 20 trading countries. It ranked 32nd in the top 100 strongest national brand values ​​in the world and has signed 16 free trade agreements (FTAs) ​​with more than 60 countries.

Việt Nam's investment and business environment is constantly improving. The United Nations Conference on Trade and Development (UNCTAD) has ranked Việt Nam in the top 20 countries attracting the most FDI in the world.

Along with that, Việt Nam is promoting the implementation of institutional reform, infrastructure construction and human resource training, based on science, technology and innovation.

Việt Nam also identifies the economic sector with foreign direct investment (FDI) as playing an important role in connecting the FDI sector and the domestic economic sector and promoting public-private cooperation in developing the green, digital and circular economies.

Believing that the bilateral economic cooperation between Việt Nam and India is not commensurate with their potential, Prime Minister Chính requested Indian ministries, branches and associations to promote dialogue and investment connection activities and to be a bridge between the governments and business communities of the two countries. Those will create favourable conditions for Vietnamese enterprises to expand investment and do business effectively in India, as well as bring many Vietnamese goods to the Indian market.

Trade between Việt Nam and India expanded from US$200 million in 2000 to nearly $15 billion last year, with $8.5 billion from Việt Nam’s exports. Two-way trade is expected to reach $20 billion in the future.

India currently has 410 valid investment projects totaling $1.03 billion in Việt Nam, ranking 25th out of 146 nations and territories investing in the country. Meanwhile, there are 16 Vietnamese-invested projects in India with a total capital of over $14 million, excluding Vingroup’s investments.

The two sides will implement effectively measures to achieve the bilateral trade value target of US$20 billion in the future, continue to strengthen official development assistance (ODA) and create favourable conditions to open more direct flights between Việt Nam and India.

PM Chính hopes that Indian corporations and enterprises will continue to invest and expand business in Việt Nam, cooperate in training high-quality human resources, especially in the fields of semiconductors, science and technology, innovation, digital transformation, green transformation, pharmaceuticals, renewable energy and biotechnology.

He also expects Indian firms will support for Vietnamese enterprises to participate in their value chains, especially in fields in which Việt Nam has potential and consider Việt Nam a strategic destination for building research and development (R&D) centres and applying high technology.

Meanwhile, the Prime Minister requested Vietnamese ministries, branches and localities to increase dialogue to remove difficulties and obstacles for Indian investors in Việt Nam. They are asked to also reform administrative procedures, promote application of digital technology, reduce compliance costs and input costs for people and businesses and prepare infrastructure conditions to attract investment.

The Vietnamese Government always supports and stands ready to facilitate both domestic and foreign enterprises to operate, including those from India, the leader said.

At the forum, under the witness of Prime Minister Phạm Minh Chính and leaders of ministries, branches and enterprises of the two countries, six cooperation agreements were signed in the fields of aviation, tourism, culture and pharmaceuticals.

SOVICO Group and Adani Group agreed to cooperate in the fields of aviation, airports and logistics. Vietnam Airlines cooperates with Indian partners to promote Vietnamese culture, country and people in India.

Vietjet Air also announced the Đà Nẵng - Ahmedabad (India) route, connecting the Indian city of Ahmedabad with Việt Nam's fourth largest city, which will serve passengers from October 2024.

Vietjet is now the airline with the most direct flights between Việt Nam and India, operating 56 flights per week across seven routes. Vietjet’s total passengers travelling between Việt Nam and India reached nearly 1.3 million. Vietjet’s 200 millionth passenger was an Indian businessman, Mr. Sandeep Mehta. Vietjet offered free international flights for one year to this special guest.

Vietjet has direct flights connecting Hà Nội and HCM City with Indian large cities such as New Delhi, Mumbai, Ahmedabad, Kochi, Tiruchirappalli as well as famous destinations Bodh Gaya and Varanasi.

PM meets large firms

Prime Minister Phạm Minh Chính had separate meetings in New Delhi on July 31 with representatives of leading Indian groups specialising in infrastructure and pharmacy, calling on them to invest in big, high-tech projects in Việt Nam.

Meeting Gautam Adani, Chairman and Founder of Adani Group that is operating in infrastructure, transport and energy, the PM called on the group to land investments and bring cutting-edge, new, clean technology and modern administration to Việt Nam, connecting the country with global production and supply chains.

Adani said his firm has invested about $2 billion in Liên Chiểu Port in Việt Nam’s central city of Đà Nẵng, noting it wishes to engage in energy projects in the central province of Bình Thuận, specifically Vĩnh Tân 3 Thermal Power Plant with a total investment of around $2.8 billion, cooperate with Việt Nam’s SOVICO Group in Chu Lai and Long Thành airport projects, and build a logistics centre in the Southeast Asian nation.

The PM also met representatives from the joint venture of SMS Pharmaceuticals Ltd and Sri Avantika Contractors operating in mining, pharmacy, infrastructure and trade, among other fields.

In Việt Nam, the two set up a joint venture with a local firm to build a pharmaceutical industrial park in the Nghi Sơn Economic Zone in the central province of Thanh Hóa.

Ramesh Babu, Chairman and Managing Director of SMS Pharmaceuticals Ltd, and Narendra Reddy, Managing Director of Sri Avantika Contractors, highly valued Việt Nam’s investment environment, and called for the Government’s support to and approval of the joint venture’s projects.

Specifically, the joint venture needs about 500 hectares to build a pharmaceutical park in Việt Nam, with an investment capital of $700 million to $1 billion in the first phase, which would increase to $4-5 billion after 10-12 years, they said.

In response, the PM spoke highly of its plans for cooperation, investment and technology transfer in Việt Nam in the time ahead and suggested it hold working sessions with the Vietnamese Ministry of Health and other ministries, agencies and localities to materialise the plans, thus building a pharmaceutical industry ecosystem in Việt Nam, serving both domestic and foreign markets.

Chính also held a working session with Dharmesh Shah, Chairman and Founder of BDR Group, another name in India’s pharmaceutical industry, which opened its representative office in Việt Nam in 2022 and is providing materials for cancer drug production to a number of factories.

Shah suggested the PM give instructions to speed up the approval of the licence for the distribution of drugs against certain types of cancer, such as prostate and breast cancer, in the Vietnamese market, saying the group wants to cooperate in drug production and technology transfer, and help Vietnamese drug manufacturing facilities that have been granted the GMP certificate meet EU-GMP and WHO-GMP standards, while also building a data centre in the country. — VNS