Indo-Vietnam trade is moving ahead steadily, with the balance of trade very much in favour of India. Bilateral trade grew to $1.536 billion in 2007 from $72 million in 1995, at an average growth rate of 20% a year.
According to the Declaration on Strategic Partnership signed by the two in 2007, a target of $2 billion was set for 2010. But trade is expected to touch $3 billion in 2008, so this means that the two countries will have exceeded the target by 50% and taken two years less time to do it.
Vietnam ambassador Vu Quang Diem said: “With total registered investment capital mounting to $5 billion in 2007 alone, India is now among the 10 biggest foreign investors in Vietnam.” Quang Diem was speaking at an interactive session in Kolkata on “Further prospects of Indo-Vietnam trade relations: Focus on West Bengal” organised by the Bharat Chamber of Commerce
Quang Diem met Mohanta Chatterjee, West Bengal food processing minister; Sudarshan Roy Chowdhury, minister for higher education; Kiranmoy Nanda, minister of fisheries; Naren Dey, minister of agriculture; and chief secretary Amit Kiran Deb to discuss issues related to prospective trade developments between Vietnam and West Bengal.
In 2007, major exports to Vietnam from India were animal feed, metals, plastic materials, pharmaceuticals, steel, cotton, leather & textile materials and pesticides. These amounted to $1.356 billion. Vietnam exported coal, pepper, rubber, computers, cinnamon, coffee, footwear, garments & textiles—worth $0.18 billion—to India.
According to Quang Diem, absence of direct flights and lack of communication are hampering growth of trade between the two countries. Talks are on with Kingfisher Airlines and Jet Airways to operate direct flights, which will also enhance the tourism sector. The ambassador has also proposed to set up a consulate general office in Kolkata.
Quang Diem, when asked if the political fiasco in Bengal over land acquisition in Singur will affect business plans in anyway, said: “We are very close. Political turmoil will not be a deterrent.”