The cooperation potential in trade and investment between Vietnam and India in general and between Ho Chi Minh City and India in particular remains huge and has not been fully exploited, heard at a forum held in the city on November 21.
Experts shared the view at the ‘India – Ho Chi Minh City Business Forum’ co-organised by the HCM City Investment and Trade Promotion Centre (ITPC) and the Consulate General of India in HCM City.
Speaking at the event, ITPC Deputy Director Ho Thi Quyen said that since the establishment of diplomatic relations between the two countries in 1972 and the upgrade to a comprehensive strategic partnership in 2016, the Vietnam-India relationship has witnessed great achievements.
According to data from the General Department of Vietnam Customs, in 2022, the bilateral trade value between Vietnam and India hit 15.05 billion USD, of which Vietnam’s exports to India reached 7.96 billion USD, and its imports from India were 7.09 billion USD.
India became Vietnam’s 8th largest trading pa
rtner. India currently has more than 400 investment projects in Vietnam with total registered capital of more than 1 billion USD, ranking 26th out of 141 countries and territories investing in Vietnam.
Vietnam and India still have a lot of room to expand trade and investment cooperation because of their large market size. Moreover, the commodity structures of the two countries complement each other well.
Vietnam and India have already signed a Double Taxation Avoidance Agreement, an Investment Promotion and Protection Agreement and a Commercial and Economic Cooperation Agreement, which are the foundation for enterprises of the two countries to seek investment and business opportunities.
Meanwhile, in the past years, HCM City and India have continuously strengthened and developed their relationship in trade and investment cooperation, as well as people-to-people exchanges.
As of October 2023, India had 237 investment projects with total capital of more than 131 million USD, ranking 23rd among 120 countries
and territories investing in the city.
The Vietnamese official said that the city sees great potential for cooperation with Indian partners and hopes that India will continue to create conditions for businesses from both sides to meet, seek opportunities, and promote cooperation in fields including trade, tourism, science-technology, health, and education.
For her part, Sunaina Khanna, Assistant Vice President of Invest India, said that India is one of the five largest economies in the world with its GDP reaching 3.75 trillion USD in 2023 and export turnover of 770 billion USD.
It is estimated that by 2030, India’s digital economy will reach 800 billion USD and it is a huge consumer market with 357 million young consumers under 30 years old. Exporting countries, including Vietnam, can take advantage of the market for development, she said.
At the same time, India is also an ideal investment destination that Vietnamese businesses and investors can consider as the country’s corporate tax is among the lowest
in the world and it offers many preferential policies to develop the semiconductor and screen manufacturing ecosystem, tax exemptions for exported goods, simple one-stop administrative procedures and abundant industrial land areas.
At the forum, Indian and HCM City businesses expressed their wishes to seek new areas of cooperation, striving to increase two-way trade, strengthen cooperation in tourism, culture, science, and technology, as well as promote people-to-people exchanges./.
Source: Vietnam News Agency