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AMBASSADOR TALK

Fostering extensive

engagement

H.E. Sandeep Arya, Ambassador of India to Vietnam, shares his
thoughts with VET on the trade and investment opportunities between
the two countries and the future of their bilateral economic ties.

% Given the recent visit to Vietnam by play, starting from transformers to motors between the two countries in the years
a business delegation from the Indian to various equipment, cables, and more. to come, and especially in 2024?
Electrical and Electronics Manufactur- So, in all three areas, we have lots of sub- Bilateral trade volumes between India
ers Association (IEEMA), what is your strates, and many companies have a sig- and Vietnam, according to official data,
assessment of Vietnam’s potential in nificant presence in India. They are also stand at $15 billion. This is an area where
manufacturing electrical and electronics looking for investment opportunities. we are putting in significant effort. Direct
equipment? But I believe that, apart from investment, investment stands at approximately $1 to
I have observed over recent years that there are lots of opportunities for trade in $2 billion between the two countries. It’s
Vietnam possesses a robust industrial base many of these electrical and electronic worth noting that some Indian investments
and a thriving economy, coupled with a items between the two countries. There go through third countries, so the actual
rapidly-expanding market. Regarding invest- are also a lot of opportunities in techno- investment may be higher than that
ment opportunities, the Vietnamese Gov- logical exchange, because I think Vietnam reflected in the numbers. Our focus is on
ernment has effectively concentrated on has strengths and we have strengths, and fostering more interaction between busi-
establishing a favorable environment for I think it’s good for companies to talk to nesses in both countries. When businesses
foreign investors to enter and invest in the each other to try to see whether they can engage with each other, the discussions go
country. Numerous Indian investors have either share the knowledge that they have beyond simple trade or investment; they
been present here for quite a few years, and or share various techniques that they have involve sharing, forming partnerships, col-
they are all very happy. Therefore, my con- developed for power plants, power distri- laborating on projects, and even exploring
gratulations and commendations go to Viet- bution, or power transmission lines. So I opportunities in a third country.
nam for achieving great success in attracting think the fourth component is basically We are actively engaged at the govern-
investment and fostering the industrialization business-to-business partnerships. These ment-to-government level, putting signif-
of the country through investment routes can be joint ventures trying to work together icant effort into various initiatives. In
and exports in a very substantive, rapid, or trying to cooperate in executing big August, a meeting took place between the
and impressive manner. projects in Vietnam and in India. industry and trade ministries in both coun-
tries, resulting in fruitful discussions and
% What factors are of interest to Indian % As Vietnam is trying to move towards progress in some areas, though more work
businesses operating in the electrical a green economy, how does India plan remains in others. Additionally, there was
and electronics sector when considering to support that process? a meeting in October for the joint com-
the investment environment in the Viet- India has witnessed remarkable progress, mission between the two countries on eco-
namese market? particularly in the solar power sector, over nomic, trade, and scientific cooperation,
Over the years, India has developed a the last five to seven years. Installed capacity where it was recognized that more efforts
robust industrial sector, showcasing has soared to around 150,000 MW for solar are needed. Another crucial aspect is the
strengths in various domains where we and wind power plants. The opportunities ongoing review of the ASEAN-India Free
possess significant national capabilities. in Vietnam are vast, especially with its Trade Agreement, initiated earlier this year
Similarly, Vietnam has also seen very strong ambitious plans outlined in the National and scheduled for completion in 2025.
achievements in the field of electrical and Power Development Plan VIII (PDP8). These are crucial for establishing a
electronic goods. So, I would like to see The focus of upcoming initiatives is expected new framework at the government-to-
business-to-business cooperation in terms to be on wind power, solar power, and the government level. This framework will
of three or four components. establishment of gas-based power plants. encompass tariff arrangements, technical
One obvious area is investment oppor- I believe there are significant opportu- standards, Rules of Origin, and the facil-
tunities for Indian manufacturers of electrical nities once again, particularly in the upcom- itation of the movement of goods and
goods of various kinds. There is a large ing large-scale transmission projects in trade. Concurrently, there are three ongo-
presence today of power manufacturers in Vietnam. Several robust Indian companies ing levels of government-to-government
electrical power, including power generation are poised to participate in these projects. processes. Simultaneously, there are plans
from coal power plants, gas power plants, They may explore various models, including to facilitate a greater movement of busi-
and solar, renewable, and wind plants, etc. direct investment, business-to-business ness delegations in both directions at the
The second component is power trans- partnerships, and potential joint ventures business-to-business level.
mission, including activities such as laying to effectively undertake and execute these We are planning a major exhibition of
transmission lines. Consequently, there is a projects. These avenues present noteworthy Indian products sometime next year. We
robust presence of companies engaged in opportunities for collaboration and growth. are also planning to take more Vietnamese
power production and project execution. companies to visit India and attend exhi-
The third component is power distri- % Can you tell us about the prospects bitions, fostering more extensive business
bution. Many small components come into for trade and investment cooperation engagement between the two countries. %

24 | VIETNAM ECONOMIC TIMES | FEBRUARY 2024 en.vneconomy.vn