CII organized “VIETNAM – INDIA BUSINESS FORUM” on Thursday, 25th February 2010 at New Delhi. The session was attended by a 70-member Business Delegation from Vietnam apart from the Indian Business Companies.

Amongst the prominent Business Delegation were the Chief Guest, Mr. Nguyen Phu Trong, President of the National Assembly, Socialist Republic of Vietnam and Dr. Vu Tien Loc, President, Vietnam Chamber of Commerce & Industry (VCCI).

The interactive session was well received on account of the active interaction of the two sides followed by B2B meetings.

CII invited OIA Chairman, Ambassador V. B. Soni to Chair the Business Session, which turned out to be the talking point of the day. Interestingly, Amb. Soni was mobbed by the Indian Businessmen seeking advice on exploring the Vietnamese Market and also approached by the strong press contingent with a volley of questions on various subjects.

We bring you the Salient Talking Points from Amb. Soni's Speech:

Dr. Vu Tien Loc, President, Vietnam Chamber of Commerce & Industry
Mr. Ly Quoc Hung, Director General, West Africa and West South Asia, Ministry of Industry and Trade
of Vietnam (MOIT)
Mr Indronil Sengupta, Chief Executive, South East Asia Projects Tata Steel

Delegates from Vietnam and fellow members from the Indian Industry
Historical perspective. Past bilateral ties.

With the introduction of economic reforms and endeavors to integrate with the global economy, our two countries have achieved considerable economic growth during last over one decade. As the world economy is recovering from the severe economic crisis, new conditions are emerging. We need to take note of the emerging scenario in our region and beyond and synergize our efforts by closer economic partnership through increased economic and trade engagements for mutual benefit.

India attaches great importance to its relations with Vietnam in overall framework of ‘Look East' policy, which will benefit our two countries in long term. The ‘ASEAN India FTA' in goods, which is effective from January this year, has some special provision for trade with Vietnam.

Though the bilateral trade between our two countries has been rapidly increasing in recent years, it is far below the actual potential. Our bilateral trade increased by 20% in 2008-09. While Indian exports to Vietnam increased by 8% to $1.74 billion, imports from Vietnam increased by 135% to $408 million. India would like to encourage more exchange with Vietnam.

India's exports consist of animal feed, metals, plastics, machinery, pharmaceuticals, steel and cotton, leather and textile. Imports from Vietnam comprise Coal, pepper, coffee, rubber, electronic goods.

Emerging opportunities in Vietnam encouraged me to visit Hanoi in August 2009 which opened my eyes. The meeting with Vice Minister of Transport who gave an overview of the development of the railways system in Vietnam indicating the master plan for 2020-2050. He then talked about development of new tracks and strengthening the existing system, details of which are available with the Vietnam Railway Corporation. He underlined that second phase of their plan would pertain to establishing regional rail links with neighboring countries like Laos, Cambodia and Thailand within the framework of ASEAN integration. With China again there is ambitious programme of extending the cross border rail link. The Minister talked about India's help in the past for the supply of locomotives and other crucial rolling stock.

Vice Minister of Industry & Trade and Director, Vietnam Electricity (EVN) briefed us about the emerging possibilities in the Energy Sector.

Let me address the issue of EXIM Bank of India's Line of Credit on soft terms. For its initial period of reconstruction programme India gave outright grant and subsequently LoC. In 2004 $ 27 million was fully utilized. In 2007 a sum of $ 45 million was offered for the Nam Chien Hydropower project. Since then the country's status has been upgraded from least developed country to middle income economy. This meant increase in the rate of interest from 1.75% (fixed) to 0.50% over LIBOR (floating). This has resulted in the amount in the pipeline of $ 19 million remaining unutilized. The issue is under discussion. Let's hope it is resolved soon.

Indian companies have shown interest in investment in Vietnam and many are already there. Major investment is expected from the Tata Steel to the tune of $3.5 billion. During my last visit to Hanoi I gathered that their production unit has already started its operation. ONGC and ESSAR are still making sincere efforts to get oil concessions but the choice of blocs being offered does not compare with the ones given to other foreign bidders. I understand that one neighbor in particular and ASEAN partners are the preferred countries in terms of getting business opportunities.

My company OIA of which I happen to be the Chairman is involved in project development and management. Through understanding of the client countries political, social and economic conditions, its focus is on building infrastructure. Its experts analyze, explore, develop and deliver infrastructure projects across all industrial sectors. OIA's expertise also includes identification of development bottle necks and specifically designed customized solutions along with funding options. Company's major operations ranging from material procurement, environment protection procedures and other vital project issues are compliant with the best quality standards

OIA caters to the requirement of most sectors that fuels the economic development of nations such as energy, agro processing, ethanol, water management, urban transport especially railways.

With services ranging from site development, techno feasibility studies, design, construction and project management, OIA is a knowledge driven company to partner with.

We hope Vietnamese government would extend all supports to Indian companies investing in Vietnam for mutual benefit. Here I would like to emphasize that the Indian companies have a very high sense of social responsibility and importance of relationship with the local population. Indian investment in Vietnam would bring technology and capital. It would also be beneficial to Indian companies to reach out to the larger ASEAN market.

I would like to suggest the following areas where we can have cooperation:

I hope this business meeting would help in developing business ties between the Industry members of the two countries and take forward the agenda of the two governments to develop strong friendship bonds.

Place: New Delhi
Date: 25.02.2010