PM hails Vietnam, India as dynamic economies in Asia

Prime Minister Nguyen Tan Dung made the remark at the Vietnam-India Trade and Investment Forum on October 27 as part of his trip to India.

In his speech at the event that attracted 300 business representatives from the two countries, PM Dung announced Indian multinational conglomerate company Tata Group and the Vietnam Ministry of Industry and Trade (MoIT) are finalizing necessary procedures to put the US$1.8 billion Long Phu 2 thermal power plant construction project into operation soon.

The Indian largest investment project demonstrates Indian firms’ increasing interest in the Vietnamese potential market, noted Dung.

PM Nguyen Tan Dung delivering a speech at the Vietnam-India Trade and Investment Forum.

India regards Vietnam as a major pillar in its “Look East” policy while Vietnam always considers the strategic partnership with India a priority in the national foreign policy.

PM Dung called on the two sides to utilize bilateral and multilateral mechanisms to further enhance trade and investment cooperation by effectively implementing signed cooperation agreements, closely coordinating at regional and international forums like the WTO, establishing the ASEAN-India FTA and accelerating the Regional Comprehensive Economic Partnership (RCEP) negotiations. 

Vietnam along with other ASEAN member states are accelerating the establishment of an ASEAN Economic Community by late 2015 with a common market of 600 million people and a GDP of nearly US$2.5 trillion, Dung said while affirming the nation’s willingness to serve as a gate way for Indian goods to enter the regional grouping.

Addition to the eight free trade agreements already in existence, Vietnam is in negotiations for another six free trade pacts with the European Union, the Customs Union of Russia, Belarus and Kazakhstan, the Republic of Korea and the Trans-Pacific Partnership Agreement (TPP).

In the next two years, Vietnam is expected to be a key member of a large economic linkage network covering 55 partners, including 15 from the group of 20 developing and emerging economies (G20).

The Vietnamese and Indian economies share similarities and specific advantages that could support and complement each other with India likely to be a good provider of raw materials for Vietnam in garment, leather and footwear, and mechanical engineering and a potential buyer of Vietnamese consumer goods, electronics, agro-fishery products and wooden furniture.

The Vietnamese government leader proposed bilateral cooperation should be focused on information and bio-technology, mechanical engineering, chemicals, pharmaceuticals, electricity, oil and gas, and agro-fisheries processing.

"Vietnam wants India’s leading corporations like TATA, IL & FS, ESSAR, GMR to engage in its infrastructure development and step up tourism cooperation especially in spiritual and cultural tourism.” Dung said.

India is now among the top 10 trade partner of Vietnam and both nations are targeting US$7 billion in trade value in 2015 and US$15 billion by 2020.

As of September 2014, India poured US$ 260 million in 84 projects in Vietnam.

(VOV)