On November 2nd 2016, the Deputy Prime Minister of Vietnam had a meeting with Indian Industry Federation, led by Mr. Naushad Forbes, President of the Federation and Chairman of Forbes Mashall Pvt Ltd, came to visit Vietnam.
According to Mr. Naushad Forbes, currently, Indian companies are investing and developing infrastructure and thermal power projects in Vietnam, such as Long Phu thermal power project and through the business forum of the two countries, the two sides are also interested in seeking opportunities to invest in Vietnam in the field of renewable energy, information technology, adaptation to climate change and many other areas.
Representatives of the enterprises under the Indian Industry Federation expressed their confidence in the political, economic and trade relationship of the two countries. They suggested that the two-way trade turnover currently stands at 5 billion USD are still low and not commensurate with the potential of the two countries. Furthermore, the Indian businesses also affirmed that they will do their best to promote investment cooperation, long-term trade between business communities of the two countries in the coming time.
Indian businesses desire the Government of Vietnam to support and remove difficulties for the joint project of the two countries in construction, transfer of technology in a number of hydropower plants, production and assembly car (a joint venture between Tata Group and TMT Group) and invest in pumping systems in urban to prevent flooding, pharmaceuticals, transport infrastructure…
According to Deputy Prime Minister of Vietnam, for many years, Vietnam is an investment destination of many large enterprises around the world. Despite the world economic recover slowly and uneven. Moreover, Vietnam economy has to face with difficulties coming from natural disasters and climate change, the economic growth in the first 9 months of 2016 rose by 6% and export still grew by 8%, while many economies’ export growth is low or negative.
In Vietnam, the Enterprise Law and the Investment Law (amended) are creating favorable business investment environment and the Government also has policy to develop 1 million businesses by 2020. In such conditions, the Vietnam Deputy Prime Minister affirmed that Vietnam will create favorable conditions for investors, both domestic and foreign so that Indian businesses will invest in Vietnam more, especially when Vietnam is a member of the 10 free trade agreements of the important areas in the world.
Deputy Prime Minister evaluated that the members of the Federation are strong India businesses, that are investing in the areas that Vietnam is prioritize the development such as energy, renewable energy, information technology… Deputy Prime Minister suggested that Indian businesses need to promote cooperation and investment in projects in the no. 7 electrical diagram of Vietnam, especially is to promote the Long Khanh Thermal Power Project. In addition, Indian companies can also participate in the value chains of Vietnam in the fields of textiles and footwear when the TPP agreement will take effect in the coming time.
Vietnam also encourage cooperation forms such as BOT, PPP and even franchised highway toll collection for foreign partners when meeting the necessary requirements; encouraging investment, transferring of technology, energy-saving machinery in automotive manufacturing, construction industry…
Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.