The Indian Ministry of Commerce and Industry will push clearance for the structure to promote investments in Cambodia, Laos, Myanmar and Vietnam (CLMV), according to local newspaper.

The Live Mint newspaper on July 23 quoted Finance Minister Arun Jaitley as saying that the “Act East” policy of the National Democratic Alliance was intended to cultivate extensive economic and strategic relations in Southeast Asia.

“In order to catalyse investments from the Indian private sector in this region, a project development firm will, through separate special purpose vehicles, set up manufacturing hubs in CLMV countries”, he said.

The project development company will be managed under the Global Procurement Consultants Ltd, a consulting firm promoted by the Export-Import Bank of India (Exim Bank).

The subsidiary will create a number of special purpose vehicles with private entities, acquire a special economic zone or industrial park, develop it and then allocate space in it to business entities in India against payments.

Vietnam is expected to be the first destination for investment in which a textile industrial park could be developed.

In addition, Vietnam is among 12 member nations joining ongoing negotiations for the Trans-Pacific Partnership agreement.

India hopes its presence in Vietnam would smooth the way to enter the markets of developed member countries, including the United States and Canada.

Indian exports to the CMLV nations surged 38 percent to 6.4 billion USD in 2013-2014 while imports reached 4 billion USD, up 4.2 percent year-on-year.

The four nations are among the fastest growing economies in the region, particularly in the agriculture sector.-VNA