India has invested over USD 1.02 billion in Vietnam, ranking 25th among 146 countries and territories investing in the country, with 407 projects. Indian investors and corporations see Vietnam as a vital partner and investment destination in various sectors.
India's Investment in Vietnam
Including direct and indirect investments, India's total investment in Vietnam has reached USD 3 billion. This significant investment underscores the robust economic ties and mutual interest between the two nations.
Trade Growth
Mr. Madan Mohan Sethi, the Consul General of India in Ho Chi Minh City, highlights the impressive growth in bilateral trade. From USD 200 million in 2000, trade surged to USD 15.1 billion in 2022 and USD 14.3 billion in 2023. This growth signifies the substantial potential for cooperation, given the market size of both countries.
Pioneering Investments
Godrej Vietnam was the first Indian company to establish a production facility in Binh Duong Industrial Park in 1994. Since then, prominent corporations like TATA, Marico, Wipro, and KCP have also invested in Vietnam, reinforcing the economic partnership.
Direct Flights Boost Connectivity
Increasing air connectivity between India and Vietnam, with direct flights linking five major Indian cities including Delhi, Mumbai, Kolkata, Chennai, and Bangalore to Hanoi and Ho Chi Minh City, has facilitated trade and investment. Many Indian businesspeople and investors are exploring opportunities in the Vietnamese market.
Promoting Investment in Binh Dinh Province
At a recent conference in Binh Dinh province, 40 Indian corporations and enterprises attended, leading to the signing of five memoranda of understanding. These agreements aim to foster collaboration in fields such as robotics, timber and forest products, economic trade, tourism, and education. The Indian Consulate is ready to assist Vietnamese enterprises in connecting with leading Indian corporations in sectors like smart agriculture, aquaculture, infrastructure, IT, healthcare, and education.
Infrastructure Development in Binh Dinh
Mr. Pham Anh Tuan, Chairman of the Binh Dinh Provincial People's Committee, emphasized the province's focus on comprehensive infrastructure development, including enhancing Quy Nhon port, planning deep-water seaports, and upgrading Phu Cat Airport for international flights. Additionally, Binh Dinh is investing in industrial parks and clusters and preparing clean land funds to attract investors.
Competitive Investment Conditions
Binh Dinh offers competitive infrastructure leasing prices in its industrial parks, ranging from USD 25 to 60 per square meter for 50 years, significantly lower than other industrial parks in the country. This, coupled with the province's proactive and creative approach to improving the investment environment, makes it an attractive destination for Indian investors.
Potential for Further Cooperation
Despite existing investments, there remains significant potential for further cooperation between India and Vietnam, particularly in sectors such as clean energy, innovation, IT, digital transformation, healthcare, and high-tech agriculture. With Vietnam's strong economic growth and favorable investment climate, the partnership between India and Vietnam is poised for continued expansion.
Vietnam’s Overall Investment Attractiveness
According to Mr. Do Thanh Trung, Deputy Minister of Planning and Investment, Vietnam has attracted 40,285 foreign investment projects with a total registered capital of more than USD 481 billion as of May 2024. Indian investors have four projects in Binh Dinh with a total registered capital of USD 3.24 million. The province continues to improve its investment environment, making it an increasingly attractive destination for foreign investors.
Achievements and Prospects
In the first five months of 2024, Vietnam has shown strong socio-economic development despite global challenges. International organizations have highly rated Vietnam’s economic growth, predicting it will continue to lead ASEAN and rank among the top 10 countries in Asia for growth from 2024 to 2029.
