Connecting Mekong region with India through infrastructure linkages

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: is still small, but there is a high potential of increased trade between the two countries. India and Vietnam are targeting the bilateral trade of over $ 2 billion by 2010. There exists immense potential for enhanced cooperation in areas like information technology, biotechnology, science and technology, and space research. In recent years, trade and investment relations between the two countries have also been improved.

The two-way trade has increased considerably from $ 697 million in 2005 to more than $ 1.6 billion in 2007. By the end of 2007, India has 18 effective FDI projects in Vietnam with a registered capital of $ 46.4 million, ranking 34th in 73 countries and territories investing in Vietnam. Several Indian companies like ONGC and Ranbaxy have been investing in Vietnam. In 2007, India’s ESSAR Group and RPG, to name a few, have shown interest to set up manufacturing facilities in Vietnam.

The growing India–Vietnam partnership is a part of growing India-Mekong cooperation that is gaining momentum. There are immense opportunities for ‘win-win’ opportunities for the countries associated with it.

India always attaches special attention to the Cambodia–Lao PDR–Myanmar–Vietnam (CLMV) countries among the ten Asean countries, and is committed to assisting them to bridge the gap with the other six.

One of the major activities of the India-Asean cooperation is to strengthen the capacity of CLMV countries in fields like entrepreneurship development, English language training and IT cooperation, among others. There are some projects initiated by India on CLMV countries such as Entrepreneurship Development Centres, Centres for English Language Training (CELT), e-Network Project–establishing VSAT-based tele-education and tele-medicine project, among others.

Meanwhile, the Mekong Cross-Border Transport Agreement (CBTA) offers useful lessons to India and other South Asian countries while setting in place a regional transit arrangement in South Asia. The India–Mekong cooperation is likely to generate investments and technology transfers between them and sharing of development experiences. This will ultimately strengthen supply capacities in Mekong countries and also keep up South–South solidarity.

India’s FDI is rising in Mekong region. The foremost requirement, therefore, would be to strengthen transport connectivity between India and the Mekong countries. Till date, there is no flight operating between India, Cambodia, Lao PDR and Vietnam. In contrast, China has daily flights with these three countries. We should have to direct flight between Mumbai and Hanoi.