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s India and Vietnam cel- eastern region and the Indo Pacific for in comparison to the total of US$300
ebrate 45 years of bilat- establishing peace and stability, the billion investment from the world.
eral relations by upgrad- Vietnamese Ambassador said, “India Indian companies are investing to
ing their Comprehensive is moving fast. It is becoming a strong the tune of US$40 billion a year in
A Strategic Partnership, the player in the region and will now look the world whereas in Vietnam it was
future seems to hold a lot of potential over a bigger space in the Indo Asia merely US$100-150 million a year.
for the two nations. The rising power Pacific region. Its role will be played Thanh said, ‘’There is a lot of poten-
of India, not just in South Asian region out in the extended neighbourhood. tial for Indian companies to invest in
but with considerable clout in the We welcome India’s new role and its Vietnam. Big groups like Mahindra
Indo Pacific, will be more balanced engagement in the region, so does and Adani are looking for investing in
than before, said Vietnamese envoy to the Association of South East Asian Vietnam.” Vietnam has a good foreign
India, Ton Sinh Thanh. Nations (ASEAN).” Thanh said, “India’s investment regime, labour cost is low.
India is one of the three nations increasing role and growing power Bilateral trade with Vietnam is much
with which Vietnam has Compre- will act as a balancing element in lesser in trade with India even in the
hensive Strategic Partnership, the the region.” ASEAN countries. With Singapore it is
other two being China and Russia. It Trade between India and Vietnam US$20 billion and with Indonesia, Ma-
was during Prime Minister Naren- has scope to expand further. Am- laysia around US$18 billion. Vietnam
dra Modi’s visit two years ago that bassador Thanh said, ‘’FTA between has a 100 billion trade with China.
the partnership was elevated. Viet- India and ASEAN should be upgraded Elucidating the demand in Viet-
nam has Strategic Partnership with 11 and expanded for the pact to deliver nam’s textile sector, the Ambassador
countries. Vietnam boosts of US$2,100 desired results. ‘’Vietnam wants to informed that textile was one sector
per capita per annum. diversify trade with different coun- where Vietnam imported to a tune of
This year will see more dialogues tries specially India which is a big around US $10 billion every year. He
between India and Vietnam. Visits market and a big investor.’’ There is expressed that India has the capac-
from India include a just concluded need to expand the agreement to ity of meeting Vietnam’s demands for
trip of Defence Minister of India, include more products, the ambassa- textile inputs. ‘’If trade was opened
Nirmala Seetharaman. A Defence dor added.
Dialogue will soon take place in Delhi. Last year, the trade between India
External Affairs Minister Sushma and Vietnam stood at US$7.56 billion,
Swaraj will visit Vietnam to co-chair a very small amount compared to oth-
a joint meeting in the end of August. er countries of the world that stood at
According to sources, the President of US$420 billion last year. In the year
India is likely to visit Vietnam by the 2016-17 investment from India to
end of this year. Vietnam was a little more than
Regarding India’s role in the South- US$800 million which is very small

Trade expansion

likely to boost

India-Vietnam ties

As part of the Comprehensive Strategic Partnership deal
reached in 2016, the two countries have taken several
measures to develop stakes in each other’s prosperity and
security, writes priti prakash

tehelka / 31 august 2018 50 www.tehelka.com