India and Vietnam are pursuing strong national economic growth and development objectives as the two rapidly growing economies and comprehensive strategic partners. 

Ambassador of India to Vietnam Sandeep Arya (2nd left) at the opening ceremony of the Vietnam Expo 2024 together with Vietnamese Minister of Industry and Trade Nguyen Hong Dien (3rd left). Photos: Indian Embassy in Hanoi, Linh Pham

Ambassador of India to Vietnam Sandeep Arya made remarks at the 33rd Vietnam International Trade Fair (Vietnam Expo 2024) held in Hanoi on April 3-6 where India is the Guest of Honor country.

“The Guest of Honor status for India also represents a more focused attention of India and Vietnam towards each other,” Ambassador Arya said.

He stressed that the comprehensive strategic partnership, bilateral trade, business collaboration, investments, projects, and economic partnership between the two countries are priority areas for both.

At the government level, the 2009 ASEAN-India Trade in Goods Agreement is currently being reviewed and expected to be finalized next year in order to enhance the trade regime between the two nations and increase bilateral trade from US$14.36 billion.

In addition, the India-Vietnam Joint Trade Sub-Commission, the Ministerial-level Joint Commission, and several joint working groups in the fields of agriculture, health, and information technology, help assess and pursue opportunities for economic cooperation.

Ambassador Arya highlighted the role of businesses in the two nations’ efforts, welcoming the presence of prominent Indian businesses and exporters at the Vietnam Expo 2024.    

Ambassador of India to Vietnam Sandeep Arya (C) and Indian executives at the expo.

Leading businesses operate in promising market

The expo marked the participation of a number of Indian companies, including Bank of India Ho Chi Minh City Branch, Bharat Electronic Ltd., Allanasons Private Limited, Marhaba Frozen Foods, Spark Minda Corporation Ltd, Ion Exchange India Limited, Fair Exports (India) Private Limited, Adani Ports & Special Economic Zones Limited, The KCP Limited, Marico South East Asia Corporation, Tata Coffee Limited, and India Trade Promotion Organization.

Among them, Bharat Electronics, Allanasons, Marhaba, and Fair Exports are already exporting their products to Vietnam. Some other Indian participants in the expo are doing successful business in Vietnam such as Spark Minda Corporation (in automobiles), Marico (personal care), Tata Coffee, and KCP (sugar). Meanwhile, Bharat Electronics, Adani Ports, and Ion Exchange are considering projects in communications, defense, infrastructure, waste management, and renewable energy sectors.

Bharat Electronics Limited (BEL), a leading defense manufacturing company under the Ministry of Defense, Government of India, has office in Vietnam since 2018. In a talk with The Hanoi Times, Sunil B M, Deputy Head of Bharat Electronics Representative Office Hanoi, said BEL regularly interacts with local companies, provinces, and government organizations to explore business opportunities and cooperation.

He said BEL has diversified into various non-defense product segments such as homeland security solutions, smart cities, e-governance solutions, and space electronics including satellite integration and energy storage products. At the Vietnam Expo, BEL showcased smart cities, medical electronics, software solutions, e-governance, energy storage, AI, drones, and anti-drone products, among others. 

From left: Manish Prasad, Deputy General Manager of India Trade Promotion Organization (ITPO) (2nd); Sunil B M, Deputy Head of Bharat Electronics Hanoi; Ravi Kumar G, Head of Bharat Electronics Hanoi, with Vietnamese Minister Nguyen Hong Dien, and Ambassador Arya.

“Vietnam is one of the fastest growing markets in the world and offers many big opportunities in smart city, software, AI, network, and cyber security domains and BEL is ready to cooperate and support local industries in fully realizing indigenous and customized solutions for their requirements and will provide long-term technical support and partnership,” the executive emphasized.

Bank of India, present in Ho Chi Minh City for eight years is expanding its banking and financial services to businesses and individuals of India and Vietnam. Sandeep Kumar Singh, General Director of Bank of India HCM City Branch, said Bank of India, which is 75% owned by the Government of India, acts as a bridge between businesses on both sides. It serves manufacturers, traders, businessmen, and Indian investors in Vietnam and Vietnamese wishing to invest in India.

Given the increasing number of Indian firms doing business in Vietnam, the bank has guided and supported them, Kumar Singh told The Hanoi Times, noting that as part of the banking business, it provides payroll management, import-export financing, LC advice and negotiations.

The bank focuses on corporates as it doesn’t have any restrictions in any particular area. It’s also going to participate in many syndications and support Vietnamese firms to raise funds from overseas and boost landing. Its future plans include launching some digital products and opening more branches in Vietnam.

Talking with The Hanoi Times about the trade and investment connections between India and Vietnam, Manish Prasad, Deputy General Manager of India Trade Promotion Organization (ITPO), the premier trade promotion agency promoting the country’s external trade, said Indian companies have been in the Vietnamese market for long and now are international players. As they want to make a good book, more want to come due to global unpredictable challenges.

“We have had a very good experience in the last two days. Vietnam has so much investment in its companies’ products and we see many links in our products on display,” Prasad said, adding that there is good potential for the products. “We can strengthen our business relationship here by introducing new products as well as computer-based, electronics-based or mobile-based products. This is our concept, there is a good demand here and they like Indian products. It’s definitely good for us and the two countries,” he pointed out.

Sangeeta Ramachandra Patil, Deputy Manager – Sales, Processed Foods Division, Allanasons talks with customers at the expo.

Among the leading Indian companies operating in Vietnam is Allanasons, which has worked with Haiphong Import Export JSC for more than 10 years. The company has supplied a wide range of products namely frozen meat, animal nutrition, wheat and grains for export to China and other countries, according to Sangeeta Ramachandra Patil, Deputy Manager – Sales, Processed Foods Division.

Sharing with The Hanoi Times, Vineet Jain, Business Head in Vietnam of Marico South East Asia Corp, believed in the Vietnamese market as evidenced by its high purchasing power. Entering Vietnam in 2011 by acquiring an 85% equity stake in International Consumer Products Corporation (ICP), one of the most successful Vietnamese FMCG companies, owning brands like X-Men, X-Men for Boss, L’ovite, Thuan Phat, Dr. Men, and Vegy which have a significant presence in the personal care, beauty, cosmetics and food categories.

Meanwhile, Samit Hussain, Manager of Exports and Logistics, Marhaba Frozen Foods, in a talk with The Hanoi Times, said he sees many potential buyers thanks to the company’s high protein content products compared to seafood which has higher prices. Additionally, Indian buffalo meat is cheaper than those from Australia and Brazil. Commenting on the business expansion in Vietnam, he said it requires a huge volume to be consumed in this market but predicted the market potential and gave some hope to the current supply volume which reaches a maximum of 50 containers per month.  

Vineet Jain (2nd left), Business Head in Vietnam of Marico South East Asia Corp, and visitors.

India Pavilion attracts a large number of visitors.