Immense scope for investment, trade between India and Vietnam: Ambassador

Ho Chi Minh City: India and Vietnam have shown a steady growth pattern and there is immense scope for investments and trade between both the countries, Indian envoy has said.

As both the countries are growing rapidly, the thrust areas have been emphasised on infrastructure, manufacturing and connectivity for increased bilateral trade and investments between India and Vietnam, Ambassador Sandeep Arya told PTI at the North East India Festival (NEIF) being held.

A steady growth pattern has been witnessed in the trade between the two countries with $15 billion in total trade, out of which India exports about seven billion dollars and Vietnam about eight billion dollars, he pointed out.

Foreign Direct Investments (FDI) have also grown by about eight times during the last ten years while the export growth of domestic enterprises was three times during the same period between the two countries.

"There is immense potential for growth of trade and investments between the two countries and is particularly relevant for North Eastern states," the ambassador said.

The most important factor for increasing trade relations between Vietnam and North East India is civil aviation connectivity, he said.

"Guwahati is already among the approved list of airports and as such the Government of India's approval is not really necessary to start operations in the sector.  Any airline that wants to fly to Guwahati does not require specific approval which is required for many other airports," Arya said.

There is a group of airports as part of the ASEAN arrangement and there is a very strong case for air connectivity between Vietnam and North East India, he added.

From the North Eastern states there are nearby ports in Myanmar, Bangladesh and Kolkata in India which presents it as an ideal area, providing direct shipping services.

Besides, the extension of the India Myanmar Thailand (IMT) Highway and multimodal transport through Myanmar also presents a strong case for trade promotion and investment opportunities, he added.

There is also immense scope for investments in the digital connectivity sector and India is doing fairly well in this technology, Arya said.

"UPI is something we are working on to have digital connectivity for cross-border payments and we are talking to the State Bank of Vietnam and Reserve Bank of India in this regard," the ambassador said.

Vietnam's manufacturing sector has a very important role to play and its electronics goods sector comprises a major sector of their exports.

The garment sector is also an area where Vietnam is growing very rapidly and there is a lot of opportunity in yarn, and cotton among others, Arya said.

Gems, jewellery, handicrafts, textiles, bamboo and agro-based products are some of the areas for investment for enhancing India's exports to Vietnam, he said.

"The Indian embassy in Hanoi and the Consulate here is focussing on investment mapping with India in electronics, manufacturing, power and electrical equipment, machinery, auto-components, agriculture products, food processing in aquatic, dairy and fruits, traditional medicine and herbs, tourism infrastructure, garments, footwear among others for export to Vietnam," the ambassador said.

Vietnam is, therefore, an excellent opportunity when the NE states are looking towards Southeast Asia, he added.

Tourism is a huge strength of Vietnam and there are immense possibilities in this sector in the North East as well, Arya pointed out.

"It was an excellent idea to hold the North East India Festival (NEIF) in Vietnam which is a rapidly growing economy with a lot of trade happening with various countries, immense investment opportunities, value and supply chain linkages, strong growth in the field of tourism, cultural exchanges and overall standing of the country is changing rapidly," Arya said.

The Festival brought in more collaboration and opened vistas for more exchanges in culture, traditions and opportunities for the North Eastern states of India, the ambassador added.

The third edition of the three-day North East India Festival will conclude on Sunday.