Much larger footprint of Indian firms expected in Vietnam

Indian Ambassador Ranjit Rae India-Vietnam trade is growing strongly after a period of negative impacts by the global financial crisis. During his first business trip to HCMC, Indian Ambassador to Vietnam Ranjit Rae tells The Saigon Times Daily about how trade as well as Indian investment are expanding in this country. Excerpts: The Saigon Times Daily: Bilateral trade between Vietnam and some countries fell sharply last year due to the crisis. Was India’s trade with Vietnam in the same situation? Mr. Ranjit Rae: Last year was very difficult when all countries suffered the crisis. That was a fact. But, it is also the fact that some of the countries in Asia like India and Vietnam did not suffer as much as those in the West, as they still registered a significant growth range of 5-6%. As far as trade between our countries is concerned, it dropped from US$2.5 billion in 2008 to US$2 billion in 2009. But, I’m very happy to inform you that in the first seven months of this year, our trade was US$1.5 billion. So, I’m hoping very much that by the end of this year we will exceed US$3 billion. Both economies are dynamic and growing rapidly, and there are many opportunities for business partnership and trade. But, what do you think when some observers say Indian companies come to Vietnam to sell their goods rather than really invest in this country? - India is now growing at almost 9% per annum, and much of our growth is generated by the manufacturing and services sectors. Many of our businesses in these sectors have become global companies. You will see that our companies are looking at opportunities all over the world and also in Vietnam. In fact, we have plans for very significant investments in Vietnam in infrastructure, steel, oil and gas, pharmaceutical, food processing, agriculture... We have already invested in many areas in Vietnam, and I would expect to see much larger footprint of Indian companies in this country in the future. How have Indian businesses prepared for that? - I think there’s a lot of interest of Indian companies in Vietnam. I’m very keen to bring Indian and Vietnamese companies closer together in various ways. We would like to have much greater participation in business fairs and more frequent exchanges of delegations in specific sectors where we think there is potential. I also want to add that the India-ASEAN Free Trade Agreement in services and investment once finalized will provide a big boost to cooperation in these sectors. I’m happy to inform you that the India-ASEAN FTA in goods already entered into force, and my expectation that our trade will increase substantially as a result of this agreement. So, what’s your projection for India-Vietnam trade in the years toward 2015? - It is very difficult to make that projection, but let me say that it is growing rapidly. Let me tell you that the earlier target for trade was to achieve US$2 billion by 2010 and we reached this in 2008. This year, we are talking about US$3 billion so that means you can see bilateral trade growing 25-30% a year. If our economies and our bilateral trade grow in the present manner then by 2015 I hope the figure would be more than US$5 billion. What position does India place Vietnam in its “Look East” policy involving Southeast and East Asia? - That’s a very, very significant role. You know the two countries have decided to upgrade our relationship to strategic partnership covering many dimensions, not only trade and investment, but also cooperation in many fields of defense, science and technology, and agriculture.