Indian businesses eye Vietnam market
(VOV) -Vietnam is an untapped market in Southeast Asia and Indian businesses are keen to penetrate and fully exploit this lucrative market, says an Indian executive.
Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations (FIEO) was speaking at an investment promotion seminar of Vietnam’s Vinh Phuc province in New Dehli on September 5.
Ajay Sahai highlighted the growing ties between India and Vietnam as an advantage for the two countries to strengthen comprehensive cooperation, especially in economics and trade.
He said that two-way trade turnover has increased dramatically in recent years, from US$2.36 billion in 2009-2010 to US$8.03 billion in 2012-2013.
India’s export turnover to Vietnam reached US$5.44 billion in the 2013-2014 fiscal year, up 37.17% compared to the same previous year.
However, with a population of more than 90 million Vietnam is still a huge potential market which is awaiting Indian exporters to break into, he said.
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For his part, Pham Van Vong, Secretary of the Vinh Phuc Provincial Party Committee, introduced the locality’s development potential and incentives to attract investors.
Over the past years Vinh Phuc province has boosted economic development and paid due attention to the overall zoning plan in accordance with regional and national planning for long-term development.
Currently, the province has completed a zoning plan for 20 industrial parks till 2020 and another urban zoning plan till 2030 with a vision for 2050, which has been approved by the Prime Minister.
During the past 17 consecutive years, Vinh Phuc has recorded many important socio-economic development achievements, with an annual growth rate of 16%.
As of late August 2014, the province has attracted 167 foreign direct investment (FDI) projects from 14 countries and territories with a total registered investment capitalisation of nearly US$3 billion.
Among large foreign groups and enterprises investing in Vinh Phuc include Honda, Toyota (Japan), Piaggo (Italy), De Hus (the Netherlands), Foxconn, Compal (Taiwan), Sindoh (the Republic of Korea), and Minda (India).
Vong said Vinh Phuc strives to become an industrial locality in Vietnam in 2015. To meet the target, the province is pooling all resources for development, with a focus on FDI capital, including Indian capital and technology.
Besides State incentives, Vinh Phuc introduces its own preferential policies to foreign investors, and it welcomes Indian businesses, he said.
Since 1988, Vietnam has attracted more than 80 Indian invested projects with total registered capitalisation of US$ 2.1 billion. Currently, India is the 12th foreign largest investor in Vietnam.