India and Vietnam have demonstrated consistent growth patterns, signalling a promising scope for investments and trade collaboration between the two nations, according to the Indian envoy, Ambassador Sandeep Arya.
The focus areas for both countries have been primarily on infrastructure, manufacturing, and connectivity, to bolster bilateral trade and investments. Speaking at the North East India Festival (NEIF), Ambassador Arya highlighted the significant trade growth between India and Vietnam, currently standing at a total of $15 billion.
Of this amount, India exports approximately $7 billion, while Vietnam exports around $8 billion. Over the past decade, Foreign Direct Investments (FDIs) have multiplied by eight times, whereas the export growth from domestic enterprises has tripled between the two nations.
Recognizing the immense potential for growth in trade and investments, particularly for the North Eastern states, Ambassador Arya stressed the importance of civil aviation connectivity. He stated that Guwahati is already among the approved list of airports, thus bypassing the need for specific approvals from the Government of India.
This advantageous air connectivity between Vietnam and North East India creates a strong case for increasing trade relations. In addition to air transportation, the North Eastern states offer accessibility to nearby ports in Myanmar, Bangladesh, and Kolkata, presenting a favourable environment for direct shipping services.
Moreover, the planned extension of the India-Myanmar Thailand (IMT) Highway and the utilization of multimodal transport via Myanmar further encourage trade promotion and investment opportunities. The digital connectivity sector also holds vast investment potential, with India exhibiting pioneering progress.
Ambassador Arya revealed ongoing discussions with the State Bank of Vietnam and the Reserve Bank of India to establish digital connectivity for cross-border payments through the Unified Payments Interface (UPI). Vietnam’s electronics industry and garment sector are prominent contributors to their exports, hence offering substantial opportunities for investment in areas such as yarn, cotton, gems, jewellery, handicrafts, textiles, bamboo, and agro-based products.
The Indian embassy in Hanoi, along with the consulate, is actively focusing on investment mapping to enhance India’s exports to Vietnam in key sectors such as electronics, manufacturing, power and electrical equipment, machinery, auto-components, agriculture products, food processing, traditional medicine and herbs, tourism infrastructure, garments, and footwear, among others.
Ambassador Arya emphasized that Vietnam is an ideal destination for the North Eastern states, given its flourishing tourism sector, and he commended the decision to hold the NEIF in Vietnam. He acknowledged Vietnam’s growing economy, extensive trade relationships, investment opportunities, value and supply chain connectivity, rapid expansion in tourism, cultural exchanges, and evolving international presence.
The NEIF further facilitated collaboration, cultural exchanges, and new opportunities for the North Eastern states of India. The third edition of the NEIF concluded successfully after three days of cultural festivities and discussions.
