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Vietnam Today

Indian investors keen on renewables and agriculture in Vietnam

Released at: 19:05, 05/07/2017

Indian investors keen on renewables and agriculture in Vietnam

Photo: Internet Archive

Instant coffee and tea of particular interest, according to the Indian Business Chamber in Vietnam.

by Quynh Nguyen

Solar and renewable energy as well as agriculture and agriculture processing, especially instant coffee and tea, are areas where Indian investors are particularly interested in Vietnam, according to Mr. Neeraj Malik, President of the Indian Business Chamber in Vietnam (INCHAM).

Shapoorji Pallonji, Suzlon, Hero Futures, Tata, and Aaveda are among the investors keen on renewable energy and agriculture projects in Vietnam, and Shapoorji Palonji is currently in the process of beginning a project. “The price of 9.35 US cents per kWh announced by the government is very attractive to investors,” he said.

Indian investors, however, must also face a range of obstacles in Vietnam’s business environment. Apart from language issues, ongoing costs relating to legal regulations are a major hurdle. “Finding partners who are trustworthy is also an issue,” said Mr. Malik.

Trade between Vietnam and India has increased rapidly, from $72 million in 1995 to $2.5 billion in 2009 and then $3.89 billion in the first four months of 2017, but reaching the goal of bringing two-way trade to $15 billion by 2020, as committed to by leaders from the two countries, requires further effort, he said.

In terms of investment, India currently has 145 projects in Vietnam with total capital of about $1.35 billion, including investments made via third countries. Direct investment from India to Vietnam is estimated at $775 million, mainly in the fields of telecommunications, information technology, motorcycles, fertilizers, and pharmaceuticals.

Vietnam and India are determined to expand their bilateral relations to match the status of comprehensive strategic partnership, as both have agreed on.

This determination was expressed in talks held by Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh and the Indian Minister of External Affairs Ms. Sushma Swaraj in New Delhi on July 4.

The two sides also agreed on various measures to bolster multifaceted bilateral co-operation.

In the economic sphere, Mr. Minh and Ms. Swaraj stressed the need for stronger and more effective measures to turn Vietnam and India into important partners.

They concurred that the Vietnam-India Subcommittee for Trade Co-operation should convene a meeting shortly to identify measures to increase two-way trade to $15 billion by 2020, including providing information and support for businesses, creating favorable conditions for the entry of goods from both countries, and strengthening connections in all fields.

They also agreed to beef up links within the framework of the ASEAN-India Free Trade Agreement and foster cooperation with regional countries in speeding up and finalizing the Regional Comprehensive Economic Partnership (RCEP).

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