National flag carrier mulls new air route to India

Prime Minister Nguyen Tan Dung has asked the national fag carrier Vietnam Airlines to conduct a study on the possible launching of direct air service linking Vietnam with India.
Prime Minister Nguyen Tan Dung has asked the national fag carrier VietnamAirlines to conduct a study on the possible launching of direct air servicelinking Vietnam with India.

The new air route would create morefavourable conditions for enhancement of economic and trade links betweenVietnam and India and other South Asian countries.

Dung also asked theVietnam Chamber of Commerce and Industry to map out a plan for establishing theVietnam-India Business Council.

According to the Government’s website,two-way trade between Vietnam and India rose from 72 million USD in 1995 to 2.4billion USD in 2008, exceeding the target of 2 billion USD set up by the twogovernments for 2010.

In 2009, despite the impact of the global economiccrisis, the two-way trade between the two countries reached 2.05 billion USD,including Vietnam’s exports of 420 million USD to India.

In October2009, India recognized Vietnam as a country with a fully developed marketeconomy.

The governments of Vietnam and India are hoping that two-waytrade between the two countries will reach 3 billion USD this year and 5 billionUSD in 2015.

India has strong points in sectors such as IT, chemicals,automobile manufacturing, railroad engine and car manufacturing, pharmaceuticalsand food processing.

In its foreign trade strategies for 2009-14, Indiahas recognised Vietnam as one of its major markets.

Indian companieshave paid great attention in Vietnam’s services sector, including banking andinsurance services.

With big investors in Vietnam such as ONGC, Essar,Tata Steel, Larsen &Turbo, Ranbaxy, Godrej , India is now listed among thetop 10 investors in Vietnam./.

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