Uplifting economic relations between Vietnam and India

This is shared by Mr. Sandeep Arya, Ambassador of India to Vietnam in an exclusive interview with our reporter.

India considers ASEAN a pillar and the foundation of Act East policy. Could you comment on the implementation of this policy so far and what are the opportunities for Viet Nam?

India-ASEAN partnership is 32 years old and has been elevated to a comprehensive strategic partnership. ASEAN as a regional organization as well as its member countries are key partners of India’s Act East policy. These relations encompass the entire spectrum of cooperation from annual India-ASEAN summit, growing economic and trade relations, development and scientific cooperation, defence and security exchanges as well as strengthening people-level ties. India and ASEAN countries are among the most dynamic economies in the world and steady growth in trade (currently USD 131.5 billion annually), investment and economic relations between us has been an important priority for both sides.

Last year, India and ASEAN agreed to review and enhance the 2009 ASEAN-India Trade in Goods Agreement that should be concluded in 2025 to make it more diverse and trade facilitative. Apart from improved trade regime at the level of ASEAN that will also facilitate India-Vietnam trade, the two countries are engaged bilaterally at the level of the governments and businesses to expand economic, trade and broader relations between India and Viet Nam. We look forward to more active and focused efforts between the two countries towards this in the year 2024.

Experts have commented that Viet Nam – India relations can be deeper and more substantive. The two countries should also focus on several fields that are their strengths such as energy, science-technology, agriculture, etc. So far, are there any cooperation between the two countries in these fields, sir?

I agree that India-Viet Nam trade, investment, business and economic relations should be expanded taking into account strong economic growth and development in both our countries. We are working at the level of the two governments, business associations and chambers, and promoting business interactions, participation in exhibitions and trade fairs, supporting province-level engagements to uplift economic relations between India and Viet Nam. Agriculture, fishery, engineering goods, electrical & electronic goods, chemicals & pharmaceuticals, mineral processing, energy (both hydrocarbon & renewable) infrastructure development, transport services and tourism are some sectors that have enormous potential for further growth. We are discussing and hoping to progress and conclude ways of streamlining and increasing trade in these areas. Greater business to business engagements is another important part of our efforts to realize the full potential of bilateral trade and business relations.

Technology could make enormous contribution to our efforts to expand economic relations, which came out during last month’s India-Viet Nam conference at the Ho Chi Minh National Academy of Politics, Ha Noi. Digital technologies, tele-communications, start-up innovations, defence, renewable energy are witnessing rapid developments in both countries and we seek to undertake sector exchanges in these areas. Banking, digital payments as well as improved direct shipping services is another area that has significant opportunities to expand bilateral economic relations ahead.

Could you please offer your prospects of bilateral cooperation in pharmaceuticals and IT industries?

There is healthy foundation for enhancing current trade and business cooperation in the field of pharmaceuticals and information technology. Alongside wider collaboration opportunities in pharmaceuticals, we endeavor to increase the current Indian share in Viet Nam.

Some of the Indian pharmaceutical majors that are globally renowned and successful could play a greater role in Viet Nam through investments and partnerships. Indian IT companies such as HCL Tech and Tech Mahindra have made a good beginning in Viet Nam by providing services in Viet Nam and through their Vietnamese operations to important customers around the world. This is a sound area for growth in the coming years. IT training and skill development efforts through already active Indian partners such as Aptech, NIIT and others could expand further the human resource pool in Viet Nam in the field of IT, electronics, etc.

In 2024, what are the significant cooperation programs that India and Vietnam will organize to promote the Comprehensive Strategic Partnership, sir?

The year 2024 has started on a positive note with the visit of Deputy Prime Minister, Mr. Tran Luu Quang to India on 10-11 January 2024, his participation in Vibrant Gujarat Global Summit and a Viet Nam-India Business Forum.  In our efforts to strengthen India-Viet Nam relations in the year 2024, the basic framework for progressing relations will comprise usual elements of political & official exchanges, promoting trade and investment, expanding business to business relations, deepening defence and security cooperation, community projects and cultural relations. The activities to take these efforts forward will be more energetic and focused on the economic domain, enhancing trade and technological cooperation initiatives which you will see unfold during the course of 2024.  

We are also planning to continue skill development efforts factoring the priorities of Viet Nam, move to the next phase of heritage restoration and conservation projects in Viet Nam, engage provinces more dynamically, and work towards greater tourism flow in both directions. People-level exchanges covering education, think tanks, cultural outreach, Buddhist interactions, Yoga, etc. will also be active part of our efforts to advance the India-Viet Nam comprehensive strategic partnership in this year.

Sincerely, thank you!