Vadodara: The bilateral trade between India and Vietnam is likely to touch USD 20 billion by 2020, country’s ambassador to India Ton Sinh Thanh has said.
“The two-way trade between Vietnam and India is expected to reach USD 8 billion this year and could rise to USD 10 billion in 2015 and USD 20 billion by 2020,” Thanh, who was in the city to meet members of the Exim Club Association of Exporters and Importers, told reporters here yesterday.
Vietnam is currently India’s tenth largest trade partner. Thanh is in Gujarat for the Vibrant Gujarat Global Investors Summit held in Gandhinagar. “Vietnam’s exports to India include electronics (mobile phones and components, computers and electronic hardware), natural rubber, chemicals, coffee and wood products. While Vietnam imports animal feed, corn, steel, pharmaceuticals and machinery from India,” he said.
The ambassador thanked India for offering a USD 300 million line of credit for trade diversification and strengthening of commercial ties, hoping that it will enable Vietnam to import more polyester fabrics and yarns from India. Currently, nearly half of Vietnam’s imports of raw yarn and fabrics come from China. India’s offer of a line of credit is aimed at diversifying Vietnam’s source of materials and thus reduce its dependence on China.
“Vietnam wants to import cotton from India and seeks investment of Indian companies in textile, chemical dyes and other sectors,” he said, adding 100 per cent investment of Indian companies in the field of health, education and other sectors will be allowed in Vietnam. Also, Indian companies will be allowed to have joint venture in Vietnam, the ambassador said.
Vietnam encourages Indian investment in areas of particular expertise such as infrastructure (railways), power generation and distribution, international bidding for projects in Vietnam, information technology, education, pharmaceutical research and production, and agro-products,” Thanh said.
India ranks 30th on Vietnam’s investment ladder. Figures for the number of projects financed by Indian direct investment vary from 69 to 84 as of September 2014. Indian capital is concentrated in oil exploration, mineral exploitation and processing, chemical manufacturing, information technology, sugar and agricultural processing.
