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      India: Vietnam looking for Indian investment to complete


      Vietnam is looking for Indian investment especially to be able to compete internationally.

      It is not afraid of foreign competition, said Tan Trong Khanh, Ambassador of Vietnam in India, at a workshop on "India-Vietnam Economic Relations: Potential and Prospects", organized jointly by Confederation of Indian Industry (CII), Embassy of the Socialist Republic of Vietnam and the Jawaharlal Nehru University (JNU), here on August 31.

      Khanh said India and Vietnam needed to think of a new motto for their relationship. The two countries needed to change mindsets to exploit the enormous potential for bilateral trade and investment. Referring to a meeting between Commerce and Industry Minister Kamal Nath and Vietnamese Foreign Minister in April this year, Kanh said, "India could invest in areas of strategic importance including science and technology and biotechnology."

      Tan expressed the hope that the workshop, coinciding with the 60th anniversary of Vietnam's National Day, would take forward the business and economic relationship between Vietnam and India.

      These ties had been reinforced in October 2004 when the two countries had proposed a two-year plan to implement the Joint Declaration on Comprehensive Cooperation Framework, signed in 2003. "These agreements had created a huge reservoir of goodwill and there was huge potential to work together," he added.

      Professor B B Bhattacharya, Vice Chancellor, JNU, described Vietnam as an attractive destination for Indian investment because of its geographical proximity to India, trained and cheap labour force compared to other ASEAN countries.

      "Knowledge based industries such as services, IT, biotech and pharmaceuticals were some potential areas for investment," he said.

      Bhattacharya said Indian investors had started looking abroad only recently. In addition to money, India had surplus talent that could be used in investments in Vietnam. "Tourism is another area that offers good scope for investment in Vietnam. India should exploit the potential for tourism in ASEAN more fully than in the past," he added.

      Vietnam is one of the fastest growing economies. Its GDP increased by 7.7 percent in 2004 compared to 2003. Industrial growth was 16 percent. Its exports, at 26 billion dollars in 2004, include crude oil, marine products, garments, shoes and agricultural commodities. It imports machinery, petroleum products, steel products, grain, cement and cotton. Till last year, it had attracted foreign direct investment of 57.7 billion dollars.


      September 01, 2005


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