Vietnam, a multi-sector strategic destination for Indian investors
Vietnam meets all criteria for Indian businesses to consider it a strategically ideal investment destination in various sectors, several experts stressed at a webinar held recently.
The June 12 webinar was organized by Leaps and Bounds Consulting, Vietnam in association with the Embassy of Vietnam in New Delhi and the Indian Investors Federation.
It attracted various renowned speakers including representatives of the government and Indian corporates in Vietnam as well as the attendance of more than 100 investors from India and other countries.
Pham Sanh Chau, Vietnamese Ambassador to India, emphasized the need of robust India-Vietnam investment relations and introduced potential sectors for investment in Vietnam including pharmaceuticals and manufacturing of automobile parts. He also shared the vision of the Vietnamese government to develop the nation as a digital economy. He said that the Embassy of Vietnam in India has a business-centered approach toward economic diplomacy and that they stand ready to assist all prospective investors.
Dr. Madan Mohan Sethi, the Indian Consul General in Ho Chi Minh City, said that Vietnam was a country to watch for, explaining that provincial governments were open for business and investments. He said that there were companies willing to explore Vietnam and “we will witness many Indian investors in Vietnam once the Covid-19 situation gets normal”. He also said that his office was always open to provide any assistance to investors.
Several representatives of Indian businesses in Vietnam shared their experiences in the country, highlighting how conducive the environment was for investment and business.
Raghu Narayanam of TATA Coffee noted that the country did not have transport strikes while having good connectivity between industrial parks and the ports, making the supply chain more efficient.
Sanjay Jain of Wipro Vietnam said his company has expanded into new business lines and has aggressive plans to expand operations in the future, following the open and supportive policies of the Vietnamese government.
The availability of a robust Information Technology (IT) talent pool in the country was noted by HCL Vietnam representative Ravi Vajpeyi, who said this greatly facilitated the company’s operations in the growing sector. HCL has made one of its biggest investments in Vietnam and was looking to service global, regional and local markets, he said.
The massive potential of the textile and garments sector was emphasized by TAP International’s Selvaraj Gopal, who said the local industry is expected to have a value of USD 39 billion in the near future. Gopal said the labor cost was comparatively cheaper in the country and the government has issued laws favorable for both the companies and their workers.
Summing the advantages and potentials in Vietnam for businessmen and investors from India in particular and the world in general, Vishwas Saraswat, founder and director of Leaps and Bounds Consulting company, one of the co- organizers of the webinar, said, “Vietnam has all the necessary elements that investors need while deciding on their strategic investment goals.”
He said a stable government, a strong qualified young population, competitive tax benefits and robust infrastructure are some of the main advantages that investors can avail of in Vietnam. He also said that that 14 plus FTAs (free trade agreements) between Vietnam and the other countries and blocs offer an immense market to investors, especially those who are willing to set up export-oriented manufacturing units.
“India is currently ranked the 26th investment partner of Vietnam with approximate USD2 billion investments in various sectors, but there are still a lot of opportunities awaiting Indian investors,” he said.
VietNam Economic News