After having exceeded their trade target set for 2015 ahead of schedule, India and Vietnam now plan to focus more on strengthening their economic engagement. The Vietnamese Prime Minister Nguyen Tan Dung will be visiting New Delhi next week with a fifty plus strong delegation of business leaders to explore economic collaboration between the two sides. Both countries have already achieved US$ 7 billion trade target set for 2015.
“Since the two sides have mature Defence and security cooperation architecture, the focus of Tan’s visit would be on increased economic collaboration. The fresh targets for this will be decided by the Prime Ministers when they meet,” said Syed Akbaruddin, spokesperson for the External Affairs Ministry.
The current $8 billion trade between India and Vietnam registered a 30 per cent growth over previous years. Out of this, the Indian exports stood at $5.4billion while imports were $2.6billion. The revised target is expected to be $15 billion by 2020.Vietnam has deep interest in agrochemicals, minerals, agricultural investment. It has also shown interest in increasing trade in textiles, chemicals, machines, leather and footwear, finance, IT and tourism. Already Tata Power has bagged a deal to develop two thermal power plants of 660 megawatts each in South Vietnam. The construction of power plants is expected to begin by 2019.
India’s ONGC Videsh is also examining the commercial viability of Vietnamese offer for exploration of additional oil blocks in the South China Sea. Claiming the majority of South China Sea to be under it, China has objected to this saying it is opposed to any country engaged in oil and gas exploration and development activities in waters under its jurisdiction. In fact, China was involved in a major spat with Vietnam and Philippines over the issue recently after Chinese ships stopped exploration activities in the South China Sea waters, claiming the area to be under it.
The United States of America has been backing the rights of ASEAN countries against the Chinese claims. During Prime Minister Narendra Modi’s visit to USA recently, a joint statement by the two countries mentioned freedom of navigation and over flight in the South China Sea. In the statement, US President Barack Obama and Modi called for all parties to avoid use, or threat of use, of force in advancing their claims and help find a peaceful resolution in the area.
“India and Vietnam relationship is not contingent on other countries. Our relationship is a bilateral one and we focus on those bilateral issues,” said Akbaruddin on China’s concern.
Vietnamese Prime Minister Nguyen Tan Dung, who arrives in India on October 27 will go to Bodhgaya in Bihar. On October 28 he will hold talks with Indian Prime Minister on bilateral issues. Agreements ranging from energy, infrastructure, trade to tourism are expected to be signed during the visit. Vietnam is also looking at increased cooperation in defence and security. India has extended Vietnam $100 million line of Credit for purchase of defence equipment.
In order to boost tourism India and Vietnam plan to increase air connectivity. For the first time there will be a direct flight to Vietnam with Jet Airways start operations between New Delhi and Ho Chi Minh City from November 5.
Meanwhile, Prime Minister Modi will visit Australia for G-20 summit in Brisbane starting November 15. He is also expected to visit Fiji on November 19.