Vietnam-India direct air route to be launched

The Prime Minister has instructed the Vietnam Airlines Corporation to consider opening direct air routes from Vietnam to India and other South Asian destinations.

Accordingly, Vietnam Airlines will either launch or establish a joint venture with other counterparts to conduct the flights.

The PM also directed the Vietnam Chamber of Commerce and Industry to formulate a project to establish a Vietnam-India business association.

Two-way trade between Vietnam and India has increased significantly in recent years, from just US$79 million in 1995 to nearly US$2.5 billion in 2008, surpassing the US$2 billion mark set for 2010.

Despite the global economic recession, bilateral trade last year reached US$2.05 billion, of which US$420 million was generated from Vietnamese exports, up 9 percent against 2008. The figure is expected to reach US$3 billion in 2010 and US$5 billion in 2015.

The trade is forecast to rise considerably in the coming years after the two countries have signed an agreement on goods trading as part of the framework agreement on ASEAN-India Trade in Goods (AITIG), and India has recognised Vietnam’s market economy status.