“Our bilateral relations have seen vigorous and positive outcomes since they were elevated to strategic partnership in 2007,” Le Manh Ha, vice chairman of the city People’s Committee, said at a Friday networking event organized by the Indian Business Chamber in Vietnam (Incham).

“Though fine political relations between Vietnam and India have laid strong foundations for bilateral trade and investment cooperation, economic cooperation still falls short of our potentials and expectations,” Ha said.

Therefore, the event was expected to “enable businesses from both sides to have more insights into untapped potentials, investment and trade opportunities, thus expanding bilateral cooperation in the coming time,” he added.

HCMC plays an essential role in helping meet the countries’ bilateral trade targets set at $7 billion in 2015 and $15 billion by 2020, he said.  

“HCMC alone achieved two-way trade turnover worth $700 million in 2013. Regarding investment, there were 26 Indian projects worth around $5.4 million as of the end of 2013.”

Vietnam’s export to India topped $2.35 billion in 2013 while it imported goods valued at $2.88 billion from the South Asian country last year, up 32 percent and 33 percent year on year, respectively.    

Singing the same tune

Indian representatives at the event also agreed with the vice chairman on boosting bilateral relations between Vietnam and India.

This year Incham will organize more workshops to promote investment and trade so that Vietnamese and Indian businesses can find cooperation opportunities, Mohan Ramesh Anand, chairman of the chamber, said.

India will also send more business delegation to Ho Chi Minh City to explore trade and investment opportunities in mechanical, pharmaceutical, and oil/gas exploration and exploitation areas, Deepak Mittal, Indian Consul General in the southern city, said.

In addition, Vietnamese businesses can increase their presence in India and leverage untapped business opportunities there by opening their representative offices, Mittal added.

Negotiations for an official direct air route between India and Vietnam is in the pipeline as the former’s two biggest airlines are closely working with the latter’s national flag carrier Vietnam Airlines on the target, he said.

India is also finalizing procedures to establish a sister city relation between Mumbai and Ho Chi Minh City, Mittal revealed.

As of the end of 2013, India had 68 operational projects with total capital of $936 million in Vietnam.

The biggest Indian investment so far in the Southeast Asian country is the $1.8 billion power complex in the Mekong Delta province of Soc Trang.

The project investor, Indian conglomerate Tata Power, was licensed to develop the 1,200MW Long Phu 2 project in the middle of last year.