Vietnam’s Lien Minh Group to invest 500 Cr in India in hotels & restaurants business: PHDCCI 

HO CHI MINH CITY (Vietnam): As companies from Vietnam start to look towards India as an alternative source of raw material after China, many are planning to invest in sectors such as hotels and Restaurants, manufacturing; Pharmaceuticals, Education, and Healthcare. Vietnam’s well known Lien Minh Group has plans to invest 500 Cr in India in the hotel and restaurants sector in a span of one year.

It was disclosed during a joint meeting of the PHDCCI delegation visiting Vietnam it met Vietnam International Entrepreneur Networking Club (VIENC), Vietnam International Entrepreneur Networking Club (VIENC), and other Vietnamese companies in Ho Chi Minh city, Vietnam.  A high-profile delegation from India consisting of representatives from various sectors is currently attending conference showcasing the trade potential between India and Vietnam. The delegation is focused on exploring business opportunities and strengthening trade ties between the two countries.

Dr. Madan Mohan Sethi, Consul General of India welcomed the PHDCCI delegation and the Vietnamese businesses present in the India- Vietnam for a Business Cooperation meeting at Ho Chi Minh city, Vietnam. Speaking at the event on the topic of growing trade ties between India and Vietnam, Dr Sethi mentioned the bi lateral trade value between the two countries crossed to USD 15.1 billion from USD 3 billion in 2013.

India provides a huge market for Vietnamese products and it is time that Vietnam invites Indian businesses to invest in the country, by getting in newer technology, digital transformation models and explore other sectors like health care and education among others. Citing it as an opportunity of learning from each other Dr. Sethi stated, Indians should learn the discipline and loyalty towards work from Vietnamese people and Vietnam should learn how to go global with the local products from Indian businesses as India is a country which has covered the major countries through trade, said Dr Sethi

Dr. Ranjeet Mehta, Deputy Secretary General, PHDCCI, said that in the last 4 months number of visa has increased to 4000 out of which 200 is Business Visa; Vitnenamme companies looking towards India as an alternative source of Raw Material after China; Companies from Vitenam planning to invest in sectors such as Hotel and Restaurants, the manufacturing sector; apart from the above sector they are keen to collaborate with India in sectors like Pharmaceuticals, Education and Healthcare; PHDCCI will provide handholding to Vietnamese industries to invest in India; In July Direct flight will start which will create a more conducive environment and enhance connectivity; Lien Minh Group would like to invest 500 crore in India under one year in sectors like Hotel and restaurants and India companies are also thinking of setting up manufacturing unit in Vietnam.

Dinh Vinh Cuong, President, Vietnam International Entrepreneur Networking Club (VIENC), informed the total Investment amount from India stands still low at 1005.57mn USD and looks forward to increasing investments from India while taking our relationship to a larger growth orbit. India is considered one of the promising markets for Vietnamese tourism, with a rise in the number of Indian visitors to Vietnam from 85,000 in 2016 to around 1.40 lakhs in 2022.

Further, he added, India has invested into 346 projects with total investments of USD 1 billion, accounting for only 0.2% of the total investments by foreign investors invested into Vietnam.

Citing this data, he added this number is too small compared to the economic potential of India, i.e., the 5th largest economy in the world and added that they expected to rise to the 3rd position in the world and 2nd in Asia, with the current strengthening if the relationship between India and Vietnam

Ms Shwetima Negi, Manager (ASEAN Team), for Invest India, mentioned about the Product Linked Incentive scheme initiated by the Government of India, presently in 14 sectors, is aimed to to promote large scale manufacturing in India. The PLI schemes till date had granted financial incentives for domestic production valued at around USD 26 bn in 14 sectors.

Speaking further on the Indian Community in Vietnam, she Informed, it has witnessed more than 109 thousand tourists in 2022 and nearly 6000 people from India. The two countries also have significant Bilateral ties in areas of Defense Connectivity, Education, Culture, Tourism and People Exchange

Later, Informing about the National Single Window System, an initiative by the government to ensure Ease of doing Business in India, Ms Shwetima said that NSWS is a one stop digital platform for all investor approvals with a GIS enabled repository of industrial grade land for investors.

The delegation visit in overall is expected to generate new business leads, enhance bilateral trade, and contribute to the growth of the Indian and Vietnamese economies.