Indian newspaper: Vietnam emerging as post-pandemic economic power in region

Workers at Compass II Co., Ltd. in Binh Duong province (Photo: VNA)

Hanoi (VNA) - Vietnam and India are emerging as economic powers in the region that will make a difference in the post-pandemic times, The Economic Times cited Indian Ambassador to Vietnam Pranay Verma as saying.

Speaking at a recent webinar on global trade and investment opportunities for Indian industry in Vietnam organised by India’s PHD Chamber of Commerce and Industry (PHDCCI), the ambassador said Vietnam and India have emerged as global trade partners due to their policy initiatives and increase in their trade and investments.

The article said deeply integrated countries like Vietnam currently have a lot of development opportunities thanks to the trend of shifting production lines and supply chains.

While applauding PHDCCI’s diligent efforts in fostering business and trade relations of India with other countries of the world, Verma discussed challenges faced by Vietnam related to disruption in production, supply chain, logistics, and many more yet at the same time arising of new opportunities in areas of technology, business practices, trade relations, diversifying partners and trade baskets.

The newspaper also highlighted reforms that the Vietnamese Government has performed, including policies to attract foreign direct investment (FDI) capital.

Vietnam’s reforms allow foreigners to own property as well as majority holdings in Vietnamese companies. Consistent economic growth has also made the Southeast Asian nation attractive to foreign investment, it said. 

According to a report of the Vietnamese Ministry of Industry and Trade, although the southern economic region - the driver of Vietnam’s economy, is being severely affected by the fourth wave of COVID-19 - Vietnam's exports has still recorded positive signs.

Vietnam’s export turnover in the first seven months of 2021 surged 25.5 percent year-on-year to over 183.3 billion USD.

Vietnam's import and export activities are forecast to have large room for growth in the time to come, as free trade agreements, which are gradually being implemented in a more comprehensive and effective manner, are hoped to further promote Vietnam's exports.

Vietnam's import-export turnover is likely to surpass 500 billion USD in the next few months if its import and export growth momentum is maintained stably.

The Economics Times also cited a recent Q2 Barometer report by QIMA, which showed that Vietnam and India emerge as alternative sourcing locations.

According to Verma, India and Vietnam are emerging as economic powers in the region that will make a difference in the post-pandemic times.

He emphasised that there is a need for Vietnam and India to take advantage of each other’s economic strength for increasing business relations between the two nations, and at the same time leverage each other’s global value chains to utilise each other’s trade networks.

There is also a need to look at the domestic market, especially in India that can offer growth opportunities to Vietnam with focus on e-documentation and e-payments which help to increase business growth and foster B2B engagement, connecting MSMEs.

There is a need for structural improvement where the government and business partners need to work in sync and also improve shipping connectivity between the two nations, the diplomat said.

He further added that mutual recognition of standards and certifications will have a positive impact on the trade and electrical machinery vertical.

At the webinar, Counselor at the Vietnamese Embassy in India Do Thanh Hai spoke about the flow of economic and trade opportunities between Vietnam and India despite the pandemic, saying the economic and trade exchange will pick up in the time to come.

There is a restructuring of the global supply chain and both nations have the capabilities to take advantage of the opportunity. With the strategic location of both nations and change in reforms, there will be an increase in trade exchange and will be a driving engine for the global economy in near future, he said./.