Indian businesses shift investment to Vietnam

The Vietnamese Government has recently allowed Tata Power, a subsidiary company of Tata Group to conduct a feasibility study to build Long Phu Thermal Power Plant 2 with a capacity of 1,200WM in Soc Trang province.

The investor is actively completing procedures for the project. After the US$2.1 billion project is implemented India will become one of top ten foreign investors in Vietnam.

The Bank of India (BOI) has recently inaugurated its brand in Ho Chi Minh City to support Indian businesses.

Shri Melwyn Rego, BOI managing director, said this is the first Indian bank branch in Vietnam. It opened a representative office in HCM City in 2003.

The inauguration of the branch will meet increasing demands of Indian and Vietnamese importers and exporters, helping the two countries lift bilateral trade value to US$15 billion by 2020, said Mr Rego.

BOI plans to open one or two more branches in Vietnam and Hanoi will be its priority, he noted.

In mid-July, a delegation comprising 41 businesses of the Indian Council for Leather Exports (CLE) made a fact-finding tour of HCM City to seek partners and cooperation opportunities in the footwear industry.

CLE President M.Rafeeque Ahmed said not only Indian businesses seek investment opportunities in Vietnam but Vietnamese businesses are also able to invest in footwear projects in India.

CLE is willing to cooperate with Vietnam businesses to develop production projects and seize investment opportunities in India, he added.

Recently, India organized many tours of Vietnam for its businesses. In 2015, 20 Indian business groups visited Vietnam and the figure will increase in the future, Mrs Pant said.