Dong Thap province is an attractive destination for Indian investors

Dong Thap province welcomes 150 Indian businesses

A Trade and Investment Cooperation Conference between India and Dong Thap province was recently organized in Cao Lanh city (Dong Thap). This is the first time Dong Thap People's Committee organizes a conference to invite Indian businesses to invest in the province as well as cooperate with local businesses.

The conference provides Indian and Dong Thap businesses with an excellent opportunity to exchange and cooperate on trade and investment. To date, approximately 150 Indian businesses have registered to participate in the event. This figure shows that the Vietnamese market as well as Dong Thap province are attractive destinations for Indian businesses and investors. The event also aims to promote and introduce the potential and image of Dong Thap province and its people, environment and investment cooperation opportunities. Subsequently, the event will attract Indian businesses and investors to deploy investment projects within the province, contributing to local socio-economic development.

According to Mr. Madan Mohan Sethi, Consul General of India in Ho Chi Minh City, Vietnam has strengths in agricultural, forestry and fishery production. Dong Thap province produces 3.39 million tons of rice and 183,000 tons of fruit every year. Most notably, the province has a mango output of at least 185,000 tons per year. In addition to the potential for agricultural development, Dong Thap is home to many other important industries such as leather, footwear, pharmaceuticals, information technology and textiles. On the other hand, these are the areas in which Indian businesses are successful and cooperation is necessary for growth.

“India has access to many agricultural machinery that can contribute to the development of agriculture in Dong Thap province. Additionally, India has a developed mango processing industry, with cooperation potential for Dong Thap province's mango processing and exporting industry. Other industrial sectors with cooperation potentials include rice processing and manufacturing products from rice. Most notably, India has the potential for cooperation in the fields of information technology and computer manufacturing with both Dong Thap province and the Mekong Delta region. We hope that the province can help Indian businesses invest in the Mekong Delta region", emphasized Mr. Madan Mohan Sethi, Consul General of India in Ho Chi Minh City.

Regarding the trade sector, Mr. Madan Mohan Sethi highlighted that the bilateral trade turnover between Vietnam and India reached 15.1 billion USD in 2022. This is an increase of 5 times compared to that of 2012. This figure is projected to reach at least 20 billion USD by the year 2025. The export and import turnover of goods from Dong Thap province to India reached over 18 million USD in 2022, double that of 2016. Within the last few years, Vietnam has increased its exports to India, with a focus on agricultural products.

Dong Thap is a key province in the agricultural production of Vietnam. In addition to the leading rice and aquacultural production, Dong Thap is home to many famous fruit trees that can promote exports to India such as Cao Lanh mangoes, Lai Vung mandarin, and Chau Thanh longan. The province is also known for its Sa Dec flower village - one of the largest flower growing regions in the country, providing over 12 million ornamental flower products every year. Tthe province is currently focusing on developing the processing industry. This is an opportunity for Indian businesses to invest in Vietnam's manufacturing of value-added agricultural products for export in order to meet the domestic demand for processed foods.

Dong Thap pledges to accompany Indian businesses 

Dong Thap province and the encompassing Mekong Delta region are the largest agricultural production areas of ​​Vietnam. Businesses in Dong Thap and the Mekong Delta are expected to benefit from increased opportunities to export agricultural and aquatic products, particularly "Sa Dec flowers", to India as a result of the Trade and Investment Cooperation Conference.

Sethia Hemraj Rice Oil Company Limited and Olam Global Agri Vietnam Co., Ltd. are two Indian companies that are currently making investments in the Sa Dec Industrial Park. Most notably, Sethia Hemraj Rice Oil Co., Ltd. is the first Indian company in Dong Thap province to operate in the field of rice oil extraction.

During the first 6 months of 2023, Sethia Hemraj Rice Oil Co., Ltd. achieved a revenue of 534 billion VND. The company is preparing to implement phase 2 of its project, as well as develop more bottled cooking oil products. Olam Global Agri Vietnam Co., Ltd. in Sa Dec City has a production area of approximately ​​32,000 square meters. The company officially began its operation in March 2023 with the product of mixed feed pellets for pangasius. By May 2023, the company's revenue reached 51.4 billion VND, and the output was estimated at 4,000 tons. The company is currently renovating the factory it acquired from the previous companies to promote production and business.

According to Mr. Pham Thien Nghia, Chairman of Dong Thap People's Committee, the province has thoroughly prepared to welcome over 150 Indian businesses to the conference. Accordingly, participants can engage in networking and exchange activities, and explore investment opportunities in commerce, investment, education, tourism, and information technology. Moreover, Dong Thap province has advantages in these areas, creating chances for collaboration in fields of mutual interest.

Dong Thap province and India have the potential to promote their cooperation in other sectors such as textiles and apparel, information technology, pharmaceuticals, etc. thanks to their abundant and youthful labor population, over 40% of which have received industrial training and worked overseas. Dong Thap currently has two major pharmaceutical and food businesses who are eager to develop joint venture cooperation, transfer high technologies in pharmaceutical production, and promote export to other countries in the region. 

Mr. Pham Thien Nghia said that the province has prepared the most favorable conditions for Indian businesses to promptly implement their projects.

Dong Thap is encouraging investors to build infrastructure for various industrial zones and clusters in the province including Tan Kieu, Tan Lap, Truong Xuan, and Quang Khanh. The two local border gate economic zones, Thuong Phuoc and Dinh Ba, have been fully prepared for project implementation. Additionally, the province features preferential policies, quick administrative procedures, friendly authorities, among others to welcome investors looking for business investment opportunities in the region.

According to Mr. Nghia, the transport network in the Mekong Delta recently gained the attention of the Government. As a result, a system of highways that connect key economic regions will be established in the near future. The recently initiated Cao Lanh - An Huu expressway project is expected to shorten travel time between Ho Chi Minh City and Dong Thap province to two hours, facilitating the trade and transportation of goods in the region. In addition, Dong Thap province has a water transportation system with 2 ports located on the banks of Tien River to facilitate the transportation of goods to the East Sea and Cambodia.

“Dong Thap province currently has over 5,000 businesses operating in various fields. The conference will be an opportunity for businesses in the province and India to exchange, learn about market demands, connect and cooperate", Mr. Nghia remarked.