A boost for Vietnam-India cooperation in the medical sector

Mr. Pranay Verma, Ambassador of India to Vietnam (Left) met with President of the Socialist Republic of Vietnam Nguyen Xuan Phuc

- Bilateral trade between Vietnam and India is increasing fast at an average of 20% annually in the past 5 years. It is expected to cross US$12 billion; moving towards the target of US$15 billion in the next few years. What are the measures to achieve this target? What are the sectors that both Vietnamese and Indian businesses could further explore for enhancing the two-way trade traffic?

As two of the fastest growing economies, economic engagement between India and Vietnam is rapidly growing. From a meagre US$ 200 million in year 2000, our annual bilateral trade has consistently been over US$ 10 billion in the last few years. However, the total bilateral trade between the two countries accounts for less than 2% of each other’s total global trade and is still quite small compared to the potential that exists.

Our business communities must seize the opportunities and exploit the potentials that the two countries offer since the last few years. In the wake of ongoing supply-demand chain disruptions, exploring new supply chains and new partnerships while creating favourable business environment for expanding the existing trade basket between the two countries would definitely enhance trade volume between the two countries.  Augmenting direct connectivity – both physical as well as digital, application of technology in conducting business, enhancing quality and standards of export commodities are essential enablers for enhancing trade volume between the two countries. Agriculture commodities, pharmaceuticals, textiles, engineering products, electronic products, chemicals, marine products, dairy products, leather and cash crops present further scope for enhancing the trade volume.  At the same time, we also need to expeditiously review and upgrade our regional trading architecture – the ASEAN-India Trade in Goods Agreement (AITIGA) – to make it reflect current economic realities and expectations. 

- Vietnam and India have agreed to enhance cooperation in fields that have much potential such as IT, renewable energy, high-tech agriculture and innovation. Please throw some light on the progress made on cooperation between the two countries in these fields.

India Vietnam Joint Vision for Peace, Prosperity and People adopted by the two Prime Ministers in December 2021 Virtual Summit envisaged deepening of cooperation, inter-alia, in transformative technologies in Information and Communication Technology, sustainable agriculture, smart cities, start-ups as well as in forging partnerships in new and renewable energy resources, energy conservation and other climate-resilient technologies, deployment of innovation in the economic and development partnership between India and Vietnam. Accordingly, domains like energy, space and digital technologies have acquired greater salience in our engagement.

Mr. Pranay Verma, Ambassador of India to Vietnam (Left) met with Chairman of the National Assembly of Vietnam Vuong Dinh Hue

As regards energy partnership, India’s top energy companies have been present in Vietnam for more than 30 years now in one of Vietnam’s offshore projects which has been mutually beneficial for both our countries by contributing to our energy security. Our companies have also been investing in renewable energy sector and are keen to explore further opportunities and partnerships in this sector.

Agricultural cooperation has traditionally been an important component of India-Vietnam relations since 1970s, when Government of India supported many initiatives towards transformation of Vietnam’s agriculture. Cooperation is being pursued in agriculture, particularly in sustainable agriculture, adapting agricultural practices and technologies to the impacts of climate change, investment in agro-processing, marine products, woodwork, and bamboo and forestry products, modern technology-driven agriculture.

Information Technology and digital ecosystem development have emerged to be an important area where both countries are developing partnership particularly in enhancing digitization, good governance, sustainable and inclusive development. India has been assisting Vietnam in augmenting IT infrastructure as well as in training and capacity building in IT skills for Vietnam under the bilateral mechanism and ASEAN framework. India set up the Vietnam-India Advanced Resource Centre in ICT in Hanoi, as well as the Param Supercomputing Facility at the Hanoi University of Science and Technology. India is assisting Vietnam in the establishment of the Centre for Excellence in Software Development and Training in Ho Chi Minh City (CESDT). India has been offering a Line of Credit of US$1 billion for various initiative of Physical and Digital Connectivity between India and ASEAN including Vietnam.

- India ranks 26 out of 141 countries and territories investing in Vietnam. How can the two-way investments from each other could be enhanced considering the efforts and policies from both countries to attract FDIs?

India is striving to become a US$ 5 trillion economy over the coming years by providing good governance; enabling grassroots empowerment through participation and technology; and achieving sustainable and inclusive development. One of the key drivers to this goal is the “Self-Reliant India” campaign through building capacities at home so that India becomes a key contributor to global prosperity. To become a “self-reliant India”, India is undertaking far-reaching reforms in a wide range of areas – from labour to land, from agriculture to manufacturing, from education to MSMEs.

Mr. Pranay Verma, Ambassador of India to the Socialist Republic of Vietnam

At the same time, Vietnam has been prioritizing attracting foreign investment in its policies and laws. From facilitating import of inputs for value-added manufacturing for exports, establishing industrial zones/parks, offering tax incentives, good logistics, investment promotion and protection arrangements, Vietnam is taking steps to promote investment friendly environment.

These policies and incentives in both countries should further encourage investments. Our investors need to seize the opportunities of the moment to start exploring investment opportunities in diverse areas such as Start-Ups, innovation, smart cities, climate resilient technologies, urban infrastructure, manufacturing, food and agricultural processing, renewable energy sector so on.

- The medical sector is considered to have a lot of potential for India and Vietnam. What are the opportunities that the Vietnam businesses can avail from the medical industry of India taking into account the focus of the Government of Vietnam in augmenting domestic production of pharmaceutical products including vaccines?

Healthcare industry in India - comprising of hospitals, medical devices and equipment, clinical trials, outsourcing, telemedicine services, medical tourism - is undergoing rapid growth owing to increasing public as well as private investments. With various major hospitals of India adopting telemedicine services and the Public Private Partnership models, the telemedicine market is growing at a speedy rate. The Indian pharmaceutical industry is known as the “Pharmacy of the World” and has been a major contributor to the global healthcare system.

The pharmaceutical sector has always played an important role in the bilateral trade relations between Vietnam and India. Pharmaceutical and Active Pharma Ingredients have been among the key export commodities from India to Vietnam. Many Indian pharmaceutical companies have established their presence in Vietnam over the years and played an important role in price stabilization through low-cost and highly effective pharmaceutical products.

Vietnam has been focusing on encouraging local manufacturing of drugs, medicines, vaccines as well as in attracting investment in pharmaceutical sector. Our pharmaceutical companies are exploring business partnerships with Vietnamese companies for production of drugs and medicines as well as vaccines under transfer of technology arrangements.

- India is promoting the implementation of pharmaceutical park in Vietnam. How can Vietnamese businesses utilize this opportunity to promote cooperation with Indian businesses in the implementation of the park in Vietnam? Once the park is established, how could it contribute to the development of the pharmaceutical market in Vietnam and the region?

The opportunities presented by the pharma sector for our two countries has been duly recognized in the India-Vietnam Joint Vision for Peace, Prosperity and People adopted by our Prime Ministers at the Virtual Summit held on 21st December 2020. Their Joint Vision identifies deepening our cooperation in holistic healthcare, vaccines and pharmaceuticals as important elements of our future partnership.

Many Indian pharmaceutical companies have established their presence in Vietnam over the years and some of them have established collaboration with local pharmaceutical manufacturers to procure drugs for Vietnamese market as well as overseas exports. Additionally, some Indian companies have expressed interests in investing in the pharmaceutical sector in Vietnam. Our pharmaceutical companies have been negotiating with various pharmaceutical companies of Vietnam for establishing manufacturing units for drugs and medicines including COVID-19 vaccines.