Viet Nam wants to boost investment with India in the fields of information-technology, biotechnology, renewable energy, building machinery, chemicals, pharmaceuticals, electricity, oil and gas, and agro-fishery processing.

President Tran Dai Quang made this statement while addressing the India-Viet Nam Business Forum in New Delhi on March 3, as part of his State visit to India from March 2-4.

The forum drew over 300 businesses operating in such fields as energy, infrastructure, information-technology and communication, pharmaceuticals, health care, development research, and hi-tech agriculture.

Quang stated that Viet Nam had become a dynamic economy with rapid and stable development, after over three decades of implementing the Doi moi (Renewal) and international integration policies. The Southeast Asian country had been evaluated as a safe and attractive investment destination in the region, and throughout the world, he noted.

Viet Nam’s consumer market is growing quickly, given its population nears 100 million and the country’s middle class is on the rise, according to the President.

In 2017, the local economy expanded by 6.81 per cent, with the average per capita gross domestic product (GDP) reaching nearly US$2,400. Viet Nam targets 6.5 – 7 per cent in economic growth in the coming years. The per capita GDP is estimated at $3,200 – 3,500. The economy will then be worth some $350 billion, he told the participants.

"Viet Nam will act to create a favourable and healthy business environment, according to international standards, regarding institutions, infrastructure, financial systems, educational reforms, and developing human resources, as well as change the growth model and develop an intellectual-based economy, especially in such hi-tech sectors as agriculture, support industries, marine economy, and tourism," the President said.

He said that the increasing attention from Indian businesses, including major groups, would, in the future, turn India into one of Viet Nam’s largest trading partners.

Particularly, the “Make in India” economic development programme initiated by Prime Minister Narendra Modi would create more opportunities and make it easier for Vietnamese businesses to increase their investments in India, President Quang added.

He also hailed TATA Group - a global enterprise headquartered in India - for implementing a thermal power project worth nearly $2 billion in Viet Nam’s Mekong Delta province of Soc Trang.

This will be India’s largest investment project in Viet Nam, demonstrating the growing interest of the Indian business community in the Vietnamese market, he said.

Furthermore, two-way trade has been increasing steadily over the years, especially since the signing of the ASEAN-India Trade in Goods Agreement in 2009.

Currently, India is operating 176 investment projects in Viet Nam, with a total registered capital of over $814 million, while ranking 28th out of 126 countries and territories investing in Viet Nam.

Quang affirmed the two countries’ strong determination to achieve two-way trade of $15 billion by 2020.

"Viet Nam hopes India will become a leading material supplier of apparel, footwear and machinery building industries, as well as make it easier for Vietnamese goods, such as agri-products, seafood, timber products and footwear, to penetrate into the market," the President stressed.

Viet Nam was keen to promote co-operation in bilateral tourism, especially spiritual and cultural tourism, he added.

At the business forum, President Quang witnessed a ceremony to launch a direct air route between Viet Nam and India. The first direct air route, run by Vietjet Air, will connect HCM City with New Delhi with four flights per week.

India is now one of the 10 leading trade partners of Viet Nam, while Viet Nam is the fourth largest trade partner of India in the Association of Southeast Asian Nations (ASEAN). — VNS