Set a target for $ 20 billion in Vietnam - India trade turnover

On the afternoon of July 31, during the state visit to India, in New Delhi, Prime Minister Pham Minh Chinh attended and spoke at the Vietnam-India Business Forum.

Recently, bilateral trade between Vietnam and India has grown from $ 200 million in 2000 to $ 14.4 billion in 2023. Of this, Vietnam’s exports to India amounted to $ 8.5 billion, while imports were $ 5.9 billion. India is one of the top 8 trading partners of Vietnam, and Vietnam is among the top 4 ASEAN countries in terms of trade with India.

In terms of investment, India has 410 active projects in Vietnam with a total registered capital of $ 1.03 billion, ranking 25th out of 146 countries and territories investing in Vietnam. Meanwhile, Vietnam has invested in 16 projects in India with a total investment of over $ 14 million.

Key foundations of Vietnam-India relations

At the forum, the Prime Minister emphasized that there are five key foundational factors for continued successful and effective cooperation between businesses of the two countries. These factors include: traditional friendly relations; high political trust; an open market; similar culture and civilization; and shared aspirations to build a powerful, prosperous nation with rapid and sustainable economic development.

The head of the government took time to analyze these foundational factors for development, as well as major orientations in Vietnam’s economic, foreign, defence, security, social welfare, and cultural policies, and the building of its political system.

After nearly 40 years of reform, Vietnam has become one of the 40 largest economies in the world, is among the top 20 trading nations, and ranks 32nd in the top 100 national brand values globally. It has signed 16 Free Trade Agreements (FTAs) with more than 60 countries.

Vietnam continues to implement comprehensive solutions to improve the investment and business environment, enhance competitiveness, and streamline administrative procedures. It focuses on reviewing and perfecting mechanisms and policies, addressing business difficulties, and facilitating citizens and enterprises.

Vietnam is advancing three strategic breakthroughs (institutional reform, infrastructure development, and human resource training) based on scientific and technological foundations and innovation. It is also rejuvenating traditional drivers (investment, exports, consumption) and promoting new growth drivers (digital economy, green economy, circular economy, sharing economy, knowledge economy, and emerging fields such as semiconductors and artificial intelligence).

As a result, Vietnam’s investment and business environment have continuously improved. In 2023, FDI attraction reached nearly $ 36.6 billion, a 32.1% increase from 2022, with actual FDI capital reaching $ 23.2 billion, the highest ever.

The Prime Minister stated that Vietnam considers the foreign-invested sector crucial, with a focus on selective foreign investment, creating spillover effects between the FDI sector and the domestic economy, promoting public-private cooperation, mobilizing all resources for development, and vigorously developing a green economy, digital economy, circular economy, and knowledge economy.

Targeting $ 20 billion in bilateral trade

According to the Prime Minister, the Vietnamese government encourages Indian businesses to expand investment in sectors where India has strengths and Vietnam has high demand and priority, such as high technology, electronics, science and technology, artificial intelligence (AI), infrastructure development, renewable energy, new energy (hydrogen), biotechnology, innovation, high-tech agriculture, and pharmaceuticals.

The Prime Minister proposed that both sides continue to support and promote dialogue and investment connections, creating conditions for businesses of both countries to expand cooperation, investment, and business effectively. He also suggested implementing effective measures to achieve the target of $ 20 billion in bilateral trade in the near future, facilitating access for more Vietnamese goods to the Indian market, and establishing direct flight routes between the two countries.

Additionally, there is a call to continue strengthening development cooperation (ODA), focusing on strategic infrastructure development, including transportation infrastructure, energy infrastructure, digital infrastructure, and climate change adaptation infrastructure. The Prime Minister also emphasized the importance of continued close cooperation and mutual support in international and regional forums of mutual interest.

The Prime Minister urged Vietnamese ministries, sectors, and localities to enhance dialogue to resolve difficulties and obstacles for Indian investors in Vietnam. He stressed timely reporting on issues beyond legal authority, continued review and reform of administrative procedures, reduction and simplification of administrative procedures, increased application of digital technology, decentralization, reduction of compliance costs and input costs for citizens and businesses, and preparation for attracting investment in transportation infrastructure, human resources, power supply, clean land, and establishing inter-agency task forces to address difficulties and support investors.

With high determination and great effort from both sides, based on traditional friendly relations and the continually developing comprehensive strategic partnership between Vietnam and India, the Prime Minister believes that economic, investment, and trade cooperation will continue to be a crucial pillar in bilateral relations, contributing to elevating the relationship to new heights and achieving greater results.