India, Vietnam emerging economic powers, set to make a difference in global economy 

NEW DELHI: India and Vietnam are emerging as Economic Powers in the region that will make a difference in the post-pandemic times. Vietnam and India have emerged as global trade partners due to their policy initiatives and increase in their trade and investments. India’s Aatmanirbhar Mission can be integrated with the Global Economy, said Pranay Verma, Ambassador, Embassy of India, Vietnam during a webinar organized by PHD Chamber of Commerce and Industry (PHDCCI) on Global Trade and Investment Opportunities for Indian Industry in Vietnam on Friday.

While lauding PHDCCI’s efforts in fostering business and trade relations of India with other counties, Ambassador Verma said the challenges faced in Vietnam related to disruption in production, supply chain, logistics, and many more yet at the same time arising of new opportunities in areas of technology, business practices, trade relations, diversifying partners and trade baskets.

Ambassador Verma emphasized that there was a need to take advantage of each other’s economic strength for increasing business relations between the two nations at the same time leverage each other’s global value chains to utilize each other’s trade network.

“There is a need to look at the domestic market, especially in India that can offer growth opportunities to Vietnam with focus on e-documentation, e-payments which will help to increase business growth and foster B2B engagement, connecting MSMEs. There is a need for structural improvement where the government and business partners need to work in sync and also improve shipping connectivity between the two nations,” he added.

He said that mutual recognition of standards and certifications would have a positive impact on the trade and electrical machinery vertical.

Talking about Vietnam and India, economic engagement, and trade investment, he said that there has been an increase in numbers but there is a need to expand our trade basket in the areas of pharmaceutical, auto components, renewable energy, IT, and digital economy, healthcare, startups, fintech, e-commerce, petroleum products, agriculture, among others and also increase in investments done in the field of IT, infrastructure, manufacturing, and others.

Dr. Do Thanh Hai, DCM, Embassy of Vietnam, India talked about the flow of economic and trade opportunities between India and Vietnam despite the pandemic and, the economic and trade exchange will pick up in the times to come.

“There is a restructuring of the global supply chain and both nations have the capabilities to take advantage of the opportunity. With the strategic location of both nations and change in reforms, there will be an increase in trade exchange and will be a driving engine for the global economy in near future. We need to find other areas of trade exchange which will help to increase trade relations at the same time meet the population demands of the future,” said Dr. Hai.

Ms. Le Thi Mai Anh, Head of Southeast Asia, South Asia, and Regional Cooperation Division,  Asia-Africa Market Department, Ministry of Industry and Trade of Vietnam delivered an overview on Vietnam’s economy and trade relations and opportunities.

She highlighted Vietnam and India’s Comprehensive Strategic Partnership is one of the five pillars that underlined strong relations. India emerged as the 10 largest trading partner of Vietnam. She mentioned that both the nations should continue to revitalise their business and investment climate and build an advanced and integrated framework for businesses to create more opportunities  to further deepen the global economy and provides a way for business production and  trade facilitation

Ms. Do Thi Quynh Nga, Director, Investment Promotion Center – North Vietnam Foreign Investment Agency, Ministry of Planning and Investments of Vietnam in her presentation highlighted Vietnam investment environment and investment opportunities in sectors such as processing, healthcare and pharmacy, ICT &  software, infrastructure & PPP, M&A startup, banking and insurance, real estate, renewable energy and biotechnology with a stable political open society,  high and stable economic growth rate, competitive production growth, human resource, institutional mechanism, and strategic location.

Raghu Narayanam, CEO, Tata Coffee (Vietnam) & Member, INCHAM Vietnam mentioned that the Vietnamese market is often drawn by its competitive costs and high level of cooperation from the government Vietnam’s tax incentives are a standout feature of the tax regime and are applied to a variety of industries and projects.

Kamal Sogani, CEO, R K Marbles, Vietnam & Member, INCHAM, Vietnam said Vietnam is an excellent place for investment with an advantageous geographic location that serves as a launchpad and home base for setting up the business with excellent provision of law and order.

Sanjay Aggarwal, President, PHDCCI in his presidential address deliberated about the changes done in outbound investment in India in terms of geographical spread and appraised the historical deep-rooted relations shared between India and Vietnam. He mentioned due to high-level visits there has been an increase in bilateral and trade relationships between the two nations in recent times creating strong contributions towards capacity building, sustainable development goals, and contribution towards the economic development of Vietnam.

Ajay Poddar, Chair, International Affairs Committee for East Asia, South East Asia & Oceania, PHDCCI discussed the increase in trade relations between India and Vietnam from the past few years due to diligent efforts from both sides. He mentioned that the cultural ties and foundation of the relationship are strong and a lot of Indian investments are being done in Vietnam which is increasing the scope of trade and investment relations between the nations.

The webinar was attended by  Saurabh Sanyal, Secretary-General, and was moderated by Naveen Seth, Assistant Secretary-General, PHDCCI, and was attended by many industry stalwarts across the globe.

PHDCCI’s webinar was supported by DLF India; Multani Pharmaceuticals; UFLEX; JK Tyre & Industries; Marble City; Paramount Cables; SMC Investments and Advisors; Blossom Kochhar Aroma Magic; Comtech Interio; DCM Shriram Industries; Radico Khaitan; R.E. Rogers India; Ajit Industries; Synergy Environics; Timberworkz; Jindal Stainless; P S Bedi & Co; IFFCO, and Hindware.