India holds great potential as lucrative market for Vietnamese businesses

India is ranked 24th out of 139 countries and territories currently investing in Vietnam, pouring about US$1 billion into 334 projects, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

For the Vietnamese side, India represents a strategic trade and investment partner, says Nguyen Anh Tuan, deputy director of the FIA, adding that with Vietnam having a young population, skilled workers, political stability, and rapid economic growth, bilateral co-operation is anticipated to yield practical results.

This comes after the southern province of Binh Duong recently received a delegation of 200 executives of large Indian firms wishing to explore investment opportunities. It anticipates that Indian businesses will increase investment in areas of their interest such as high-tech industries, supporting industries, information technology, hi-tech agriculture, renewable energy, commercial development, services, infrastructure, and human resources training.

In addition, Vietnam is currently emerging as an attractive tourist destination for Indian holidaymakers. Statistics indicate that more than 94,000 Indian tourists have visited the country over the past nine months of the year. According to Subhash Prasad Gupta, deputy ambassador of India to Vietnam, Indian visitors normally spend about US$1,200 each per trip, with their trips often lasting between 12 and 15 days.

Currently, Vietnamese airlines are operating 21 direct routes connecting major cities from the two countries, with over 60 flights running per week. Located in central Vietnam, Da Nang is one of the localities which has made specific efforts in a bid to attract Indian tourists over recent times. The central city has launched two direct routes to two major Indian cities, Mumbai and New Delhi, and is expected to run further flights to three more Indian cities - Bengaluru, Hyderabad, and Ahmedabad - by the end of the year.

Da Nang pays special attention to upmarket tourism products which specifically cater to the tastes of Indians such as wedding tourism, resort tourism, and event organisation, said Truong Thi Hong Hanh, director of the Da Nang Municipal Department of Tourism.

As part of efforts to attract more Indian visitors, operators at Da Nang International Airport have designed a prayer room inside the airport. Meanwhile, Furama - Airyana Da Nang Tourism Complex has recruited a chef who is an expert in Indian cuisine in order to serve Muslim tourists.

The popular island of Phu Quoc in Kien Giang province, a major tourist attraction in the south, has seen an increasing number of Indian tourists fly in directly from Mumbai, marking the return of visitors who had been very fond of the island before the COVID-19 pandemic. Recently, an Indian billionaire chose Phu Quoc as the wedding venue for their son, helping to popularise the island internationally.

Khanh Hoa province and its neighbour Da Nang have just sent delegations to India as part of efforts to sound out investment and tourism promotion opportunities. Khanh Hoa has resolved to open a direct flight from India to Cam Ranh International Airport soon, while Da Nang is in the process of seeking Indian investment in the fields of trade, import, and export, logistics, and information technology.

Moving forward, a business co-operation forum between Vietnam and India is scheduled to take place in Da Nang in 2023, revealed Tran Phuoc Son, vice chairman of the Da Nang administration.