The Prime Minister of Vietnam, Pham Minh Chinh, has called for a significant boost in economic cooperation with India, aiming for US$20 billion in bilateral trade. This ambitious target was highlighted during the Vietnam-India Business Forum, organized by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Embassy of Vietnam. Prime Minister Chinh stressed Vietnam’s desire for enhanced collaboration in sectors such as infrastructure, digital technology, and pharmaceuticals.
A Historical Partnership and Modern Strategic Goals
Vietnam and India share a friendship that spans over two millennia. This historical connection has evolved into a comprehensive strategic partnership, opening new avenues for cooperation. PM Chinh underscored Vietnam’s foreign policy of independence and multilateralism, aspiring to be a reliable partner globally. He invited Indian businesses to invest in Vietnam’s growing industries, including semiconductors, innovation, digital transformation, green hydrogen, renewables, and biotechnology.
Notably, Vietnam imports 33 percent of its pharmaceuticals from India, with a vision to establish a robust pharmaceutical ecosystem within its borders. The visiting leader encouraged Indian businesses to incorporate Vietnamese companies into their supply chains, marking Vietnam as a strategic investment destination.
Complementary Economic Growth
Jitin Prasada, India’s Union Minister of State for Commerce & Industry; Electronics and Information Technology, echoed the call for deeper economic ties. He highlighted the complementary growth trajectories of India and Vietnam, both nations growing nearly twice the global average rate. The minister underscored the potential for mutual benefits through enhanced manufacturing capabilities and participation in global value chains.
Prasada stressed the importance of focusing on each other’s markets, noting that bilateral trade, currently at US$14.8 billion, has room for significant growth. India’s role as the guest of honour at the 33rd Vietnam International Trade Fair in Hanoi exemplified the strengthening economic relationship.
Strategic Agreements and Future Collaborations
During the forum, various Memorandums of Understanding (MoUs) were signed, further solidifying the economic partnership between the two nations. Notable agreements include:
Vietnam Airlines and Innovations India: Cooperation related to the film `Love in Vietnam’ and the India–Vietnam Festival of Friendship.
Sovico and Adani Group: Collaboration in aviation, airport, and logistics industries.
T&T Group and Ramky Group: Partnership in developing waste treatment plants and pharmaceutical industrial parks.
Invest Global and multiple entities: Promoting trade and investment between the two countries.
Hoang Lam Pharmaceutical and Cosmetics JSC and STEMPEUTICS Research: Distributing STEMPEUTICS products and applying new technologies in Vietnam.
These agreements cover a range of sectors, from aviation and logistics to pharmaceuticals and renewable energy. The forum also marked the launch of a direct flight between Da Nang, Vietnam, and Ahmedabad, India, symbolizing growing connectivity and people-to-people ties.
A Vision for the Future
The review of the India-ASEAN Trade and Goods Agreement of 2009, expected to be completed by 2025, alongside ongoing Indo-Pacific Economic Framework negotiations, promises to enhance economic cooperation further.
Sandip Somany, Past President of FICCI, highlighted the strong economic bond and potential for deeper engagement in sectors like agriculture, ICT, and tourism, including Buddhist-centric tourism and destination weddings.