Vietnam favours FTA with India

7 July 2007: New Delhi

By Sandeep Joshi

Visiting Vietnamese Prime Minister Nguyen Tan Dung on Friday favoured a Free Trade Agreement (FTA) between Vietnam and India. “I hope talks between Vietnam and India will begin soon for signing an FTA that would help create more favourable business conditions to improve the level of trade,” Mr. Dung told the India-Vietnam Business Forum.

Lauding the role of Indian industry in the development of the Vietnamese economy, Mr. Dung said, “We need to further cement this relationship…” He also hoped that India would be able to finalise the trade agreement with the Association of South East Asian Nations (ASEAN) of which Vietnam is a member. “An India-ASEAN FTA would be beneficial for the growth and prosperity of the entire region,” he added.

The Vietnamese Prime Minister promised to create a favourable investment environment for Indian companies. “India is one of the top investors in Vietnam. We welcome more investments from India and promise to create good conditions to ensure its success,” he said.

Terming his visits to Kolkata and Mumbai as “fruitful”, Mr. Dung said the two nations need to collaborate more. “Vietnam wants to find out ways to elevate the traditional relationship with India to a comprehensive strategic partnership in science, technology and education for the sustainable development of the people of both countries.”

Praising India’s ‘Look East’ policy, Mr. Dung said it has helped South East Asian nations to come closer to India, particularly Vietnam. “The relations between the two countries have increased considerably in the last five years, with bilateral trade reaching $1 billion in 2006.”

Minister of State for External Affairs Anand Sharma said India’s ties with Vietnam has risen to strategic levels of cooperation in economics, defence and security. “Both countries need to accelerate the rate of growth so that the fruits of development could reach the masses.”

Pledging India’s support in the field of information technology, telecom, railways, transport and education, Mr. Sharma said industry leaders should identify new areas of cooperation. He hoped that bilateral trade would treble in the next five years.

Two Memoranda of Understanding (MoU) with a business value of $500 million were signed between Indian and Vietnamese companies for investment in mining, oil fields, power sector and fund management. Another MoU was signed between educational institutes of Vietnam and India.

Link: The Hindu