India - Vietnam Relations

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Consulate General of India

Ho Chi Minh City

 

Strong Foundation of Bilateral Relationship: 

India-Vietnam relations have been exceptionally friendly and cordial since their inception.  The two countries have been historically linked through deep cultural bonds, ethical beliefs and their people share similar memories of struggle for liberation from foreign rule and of national struggle for independence. Our political leadership has shared great personal rapport and laid a strong foundation for a partnership which has grown on all fora over the last five decades. 

Pandit Jawaharlal Nehru was one of the first visitors to Vietnam after its victory against the French at Dien Bien Phu in 1954. President Ho Chi Minh visited India in February 1958 on an 11- day State Visit. President Rajendra Prasad visited Vietnam in 1959.  In recent times, Prime Minister Narendra Modi’s visit to Vietnam from 02-03 September 2016, which saw elevation of strategic partnership to comprehensive strategic partnership, reflected the continued commitment of political leadership in strengthening bilateral ties. Trade and economic linkages have been identified as a priority.  India’s thrust under the ‘Act East’ policy combined with Vietnam’s growing engagement within the region and with India has paid rich dividends.  Vietnam is an important regional partner in South East Asia. India and Vietnam closely cooperate in various regional fora such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO. Vietnam is the ASEAN country coordinator for India for the period 2015-2018.

 

Economic and Commercial Relations

  • India’s relations with Vietnam are marked by growing economic and commercial engagement. India is among the top ten trading partners of Vietnam.
  • The official data of Ministry of Commerce in India, shows that the total trade between the two countries at US$7.285 billion during April –December 2016 (Indian Exports US$4.798 billion, Imports US$2.487 billion).

 

Period

Imports

(Vietnam from India – US$  billions)

Exports

(Vietnam to India – US$ billions)

Total Bilateral trade

(US$ billions)

2014-15

6.258

3.003

9.261

2015-16

5.266

2.560

7.826

2016

(Apr – Dec)

4.798

2.487

7.285

Source : http://commerce.nic.in/eidb/default.asp

  • During the visit of the Party General Secretary H.E. Nguyen Phu Trong to India in November 2013, both sides agreed to increase trade to US$ 15 billion by 2020, which was reiterated during the visit of Prime Minister of India to Vietnam in September, 2016.
  • Investment by Indian companies including from third countries into Vietnam  are over US $ 1 billion. Indian companies have invested in oil and gas exploration, mineral exploration and processing, sugar manufacturing, agro-chemicals, IT, and agricultural processing.  TATA group has been allotted a project of $2.1 billion in thermal power plant in Soc Trang province and it has also planned to invest in a Coffee processing plant in Binh Duong Province to the tune of US$ 50 million.  
  • Vietnam investment in India: According to the Foreign Investment Agency, Vietnam has six investment projects in India with total investment of US$ 28.55 million. Vietnamese companies have invested in the area of pharmaceuticals, Information technology, chemicals and building materials. Most remarkable project among them is the project of M/s Rohto Mentholantum Vietnam vide Rohto Pharma (India) Pvt., Ltd., in 2011 with total investment of US$22.8 million.
  •  Direct Flight: An Air Service Agreement was signed in November 2013, during the visit of Party General Secretary H.E. Mr Nguyen Phu Trong to India. Connectivity remains an important element for furthering our investment cooperation & tourism. In this vein, a Memorandum of Understanding was signed between India’s national Carrier Air India and Vietjet Air of Vietnam in December 2016 during the visit of Chairperson of National Assembly of Vietnam Nguyen Thi Kim Ngan, and a direct flight is expected to commence between India and Vietnam in the second half of 2017.
  •  Indian Banks in Vietnam: In November 2012, Reserve Bank of India and State Bank of Vietnam signed a Memorandum of Understanding on banking supervision, creating a good legal frame work for Indian banks and Vietnamese banks to set up branch offices in the respective countries.
  • The Bank of India Branch Ho Chi Minh City officially inaugurated its first branch in Ho Chi Minh City, Vietnam on July 22, 2016.  The opening Bank of India Ho Chi Minh city branch would cater the needs of the investment projects as well as exporters and importers of both the countries, it also give supports to small and medium sized enterprises as well.
  • Business delegations – Several business delegations from India and vice-versa, visited each other’s country to promote trade and investment. 

Indian delegations to Vietnam:-

  1. The Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL), Mumbai led 50 leading Indian companies to organize Indian Chemicals and Cosmetics Exhibition in HCM City in January 6-7, 2016;
  2. Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) organized a delegation of 38 companies to visit HCM City from March 17-18, 2016 to organize an India – Vietnam Business Meeting on Pharmaceutical Industry on March 17, 2016;
  3. Visit of TEXPROCIL & Indian Textile Companies in connection with Fashion Show Ao Dai & Saree, and Vietnam Saigon Textile & Garment Industry Expo held in Ho Chi Minh City from March 30 to April 2, 2016;
  4. In a program coordinated by Network of Aquaculture Centres in Asia Pacific (NACA), Bangkok and Nong Lam University, HCM City, a delegation from Government of Odisha and 7 aqua farmers visited HCMC in April, 2016;
  5. Council for Leather Export Promotion led 41 Indian exporters/manufacturers of finished leathers and leather products participated in the International Shoes and Leather Exhibition Vietnam at SECC, HCM City from July 13-15, 2016;
  6. A 5 member Soybean Processors Association (SOPA) of India delegation led by their Chairman Dr. Davish Jain visited Vietnam to revive the Indian soymeal exports from 24-26 September 2016,
  7. Electronics and Software Export Promotion Council of India led a delegation of 13 IT companies to  Ho Chi Minh City from 05-07 October 2016;
  8. Confederation of Indian Industries mounted a 48 member delegation for METALEX 2016 exhibition at HCM City in October 2016;
  9. Energy Efficiency Services Limited visited Vietnam to scout for business opportunities in LED sector and held workshops in Hanoi and HCM City in November 2016;
  10. TEXPROCIL (The Cotton textile Export Promotion Council of India) organized a delegation of 15 companies to participate in the16th International Vietnam Garment and Textile Fair in November 2016.
  11. PLEXCONCIL, India and NSIC mobilized more than 50 Indian companies to participate in ‘PLASTICS VIETNAM’ exhibition from 22-24 February 2017.
  12. A 47 Indian leading companies led by ASSOCHAM participated at the ProPak Vietnam 2017 from 21-23 March 2017 in HCMC.

 

Vietnamese Delegations to India:-

  1.  Vietnamese delegations from five Southern Vietnam provinces (Ca Mau, Ninh Thuan, Soc Trang, Tay Ninh, Tien Giang) participated at the 3rd India – CLMV Business Conclave ‘Creating Business Partnerships’ in Tamilnadu from 12-13 January, 2016;
  2. Representatives from Vien Dong College, VP Bank Finance Co. Ltd. participated in INDIASOFT 2016, Mumbai from 3-4 March 2016;
  3. Vietnam Chamber of Commerce and Industry led 11 companies to participate in CAPINDIA  2016, Mumbai organized by CHEMEXCIL from 20-22 March 2016;
  4. A ten member delegation from Saigon Jewelry Association visited Mumbai to attend the 33rd edition of the India International Jewellery Show from 5-8 August, 2016;
  5. A 15 member business delegation of Vietnamese garment & yarn importers visited ‘Source India’ textile show at Ahmedabad from 13-14 August 2016;
  6. Ho Chi Minh City Association of Women Entrepreneurs & Enterprises  (HAWEE)’s 19 member business delegation visited Mumbai, New Delhi from Sept. 26 – Oct. 6. to explore Indian market for importing gems, diamond, body care, cosmetics from natural herbal Ayurveda, organic chemicals and Indian entertainment series;
  7. A 10 member delegation from the Foreign Service Company, FOSCO, visited Ahmedabad, Gujarat, to participate in the ‘Vibrant Ceramics Expo and Summit 2016’ from 16-18 December 2016.
  8. Electronics and Software Export Promotion Council of India (ESC) sponsored 15 Vietnamese delegates from Southern Vietnam provinces to participate in the ‘INDIASOFT 2017’ conference/B2B event at Hyderabad from 13-14 February 2017;
  9. About 70 strong delegation from Vietnam, led by the Deputy Minister of Industry and Trade Cao Quoc Hung, participated in the 4th India-CLMV Business Conclave organized by CII and the Government of India at Jaipur, Rajasthan from 27-28 February 2017. Five provinces from South Vietnam, Ninh Thuan, Gia Lai, HCM City, Binh Phuoc and Tien Giang participated with 50+ members.

 Assistance and Capacity Building:

  • Lines of Credit: Since 1976, India has offered several Lines of Credit (LoCs) to Vietnam over the years on concessional terms and conditions. So far, India has extended 17 LoCs worth more than US$165 million to Vietnam.
    • In July 2013,India extended LoC of US$ 19.5 million for execution of a Nam Trai-IV hydropower project and Binh Bo Pumping station;
    •  India has also extended lines of credit of US$100 million for infrastructure and Defence procurement;
    • India has also agreed to consider earmarking an amount of up to USD 100 million under the Buyer’s Credit of the National Export Insurance Account (BC-NEIA) for use by Vietnam;
    • India has pledged to provide US$5 million to help Vietnam build a Software park in the city of Nha Trang;
    • A new US$500 million credit line for deepening bilateral defence cooperation was announced by the Indian Prime Minister during his visit in September 2016.
  • Scholarships: Vietnam has been a recipient of large number of scholarships under Indian Technical and Economic Cooperation (ITEC) programme. Presently, 150 ITEC slots are being offered to Vietnam every year. Scholarships are also offered 16 scholarships under the General Cultural Scholarship Scheme (GCSS), 14 scholarships under the Educational Exchange Programme (EEP) and 10 scholarships under the Mekong Ganga Cooperation Scholarship Scheme (MGCSS). 
    • Consulate General of India, Ho Chi Minh City has processed applications for its allocated quota of 50 ITEC, 8 GCSS and 4 EEP scholarships during 2016-17; and is processing 10 GCSS, 7 CEP/EEP and 7 MGCSS for 2017-18.

  Assistance to Vietnam within the ASEAN framework:

  • An Inter-Governmental Framework Agreement has been signed between the two countries for Exploration and Use of Outer Space for Peaceful Purposes and both sides are to conclude the Implementing Arrangement between the Indian Space Research Organisation and Viet Nam Ministry of Natural Resources and Environment on Establishment of Tracking and Data Reception Station and Data Processing Facility in Vietnam under the India-ASEAN Space Cooperation.
  • A Memorandum of Understanding between Centre for Development of Advanced Computing, Ministry of Electronics and IT, Government of India; and Posts and Telecommunications Institute of Technology (PTIT), Ministry of Information and Communications, Government of Vietnam has been signed for setting up of a sustainable IT infrastructure for advanced IT training under India- ASEAN Cooperation.

 

Cultural Relations and People to People Exchanges: 

Conservation and restoration of Cham monuments: The Archaeological Survey of India is being executed a conservation and restoration project at the UNESCO heritage site of My Son in Vietnam. The project has highlighted the old linkages of the Hindu Cham civilization between India and Vietnam. A MoU between India and Vietnam was signed on 10 October 2014. The Survey of Archaeology India helps maintain and restore the temples. Five-year project is estimated to have cost about 15.71 crores (about US$2.5 million)

 Indian Community 

The estimated population of Indians living in Vietnam is about 2000, mostly in HCMC. The Indian community is vibrant, law-abiding, well-educated and prosperous. There has been an increase in professionals working in multinational companies in Vietnam.

Representatives of Indian businesses have knit themselves in an organization called Indian Business Chamber (INCHAM).  INCHAM promotes trade and business interactions as well as organizes cultural events. 

 

 

Useful Resources

 

 

(April 2017)