Rajan Kalsotra
Deputy Prime Minister Tran Luu Quang’s ongoing visit to India, particularly his participation in the 10th Vibrant Gujarat Global Summit, holds significant importance for strengthening the ties between Vietnam and India. The Vietnamese Ambassador to India, Nguyen Thanh Hai, highlighted that this visit underscores Vietnam’s commitment to valuing its relationship with India and supporting initiatives and forums led by India that align with the interests of both nations and the global community.
The primary objective of the visit is to boost interactions with leaders of the Indian business community and facilitate trade and investment cooperation between Vietnam and Gujarat state, as well as on a broader scale between Vietnam and India. The Vibrant Gujarat Global Summit, initiated by Indian Prime Minister Narendra Modi, serves as a vital platform for networking, knowledge sharing, and establishing cooperative relationships for sustainable development.
Deputy PM Quang’s attendance at this summit as the first high-ranking Vietnamese leader emphasizes the significance of the bilateral relationship. It marks the initial high-level exchange between the two nations in the current year, providing an opportunity for Deputy PM Quang to engage with Indian and Gujarat leaders to strategize on enhancing ties and aiming for a two-way trade volume of USD 20 billion in the near future.
Throughout the visit, Deputy PM Quang delivers a keynote speech, addresses the Vietnam business forum, and hold working sessions with leading Indian firms. These engagements involve introducing Vietnam’s socio-economic development policies, highlighting investment incentives, and sharing experiences on policy-making related to technology, innovation, and sustainable development.Top of Form
Vietnam Charts a Dynamic Economic Future: Achievements, Policies, and Modernization Drive Toward 2050
Vietnam’s economic landscape showcases remarkable achievements, underpinned by the dynamic implementation of the 13th Party Resolution and the National Master Planning strategy spanning from 2021 to 2030, with an ambitious vision extending to 2050. The financial market has experienced robust growth, reflecting the nation’s commitment to fostering a stable and resilient economic environment. The Vietnamese currency, guided by prudent policies, has remained robust, contributing to the nation’s economic stability.
In alignment with the public industry and modernization drive until 2030, Vietnam has witnessed substantial advancements. Strategic guidelines and policies underscore the prioritization of technology adoption, innovation, and sustainable development. These initiatives align with the broader vision set for 2045, emphasizing comprehensive modernization.
The 13th Party Resolution sets the tone for inclusive economic development, with a focus on promoting equitable growth, social welfare, and environmental sustainability. Vietnam’s commitment to these principles signals a progressive approach, creating a conducive environment for both domestic and foreign investments. As the nation propels towards 2050, these strategic orientations promise a resilient, dynamic, and modern economy, positioning Vietnam as a key player in the global economic landscape.
Vietnam-India Partnership: Trade, Finance, and Connectivity for Prosperity
The budding comprehensive strategic partnership between Vietnam and India has blossomed into a fertile landscape for enhanced cooperation, particularly in the realms of economics, finance, monetary and securities. Both nations, brimming with economic dynamism and strategic considerations, share a vested interest in nurturing this flourishing relationship.
While the existing India-ASEAN Free Trade Agreement (FTA) provides a framework for collaboration, a bilateral FTA between Vietnam and India holds immense potential. Deeper tariff cuts, broader market access, and seamless regulatory cooperation fostered by such an agreement could invigorate trade and investment in sectors like pharmaceuticals, agriculture, textiles, and IT. However, carefully navigating sensitive sectors and potential trade imbalances, alongside concerns regarding intellectual property rights and non-tariff barriers, would be crucial in navigating the path towards a comprehensive FTA. Alternatively, exploring interim or sectoral agreements could serve as stepping stones, paving the way for a more extensive agreement in the future.
Beyond trade, forging deeper financial and monetary ties would be equally beneficial. Facilitating cross-border investments, particularly in infrastructure, renewable energy, and fintech, could ignite mutual economic growth. Establishing currency swap agreements would not only ease trade flows but also reduce dependence on major global currencies. Additionally, sharing expertise in financial technology and regulatory frameworks would strengthen both nations’ financial systems.
The realm of securities markets presents another exciting avenue for collaboration. Allowing Vietnamese and Indian companies to list on each other’s stock exchanges would diversify investment opportunities and attract foreign capital. Harmonizing securities regulations would further attract investors by streamlining compliance procedures. Finally, knowledge exchange in market supervision and investor protection could bolster the robustness of both countries’ capital markets.
Connectivity serves as the lifeblood of economic prosperity, and enhancing maritime and air links between Vietnam and India would be pivotal. Improved air and sea connectivity would not only boost trade and tourism but also facilitate deeper cultural and educational exchanges. Furthermore, collaboration on digital infrastructure projects like submarine cables and data centers could strengthen regional connectivity and pave the way for robust digital trade.
In conclusion, the potential for a synergistic partnership between Vietnam and India is vast. Exploring a bilateral FTA, fostering financial and monetary collaboration, integrating securities markets, and enhancing connectivity are just the initial steps towards unlocking this immense potential. By working together, these two Asian powerhouses can craft a mutually beneficial partnership that not only fuels their individual economic engines but also contributes to regional stability and prosperity.
Vietnam’s Strong Stance: Tackling Stock Market Violations and Paving the Way for Economic Transformation
In recent times, the Vietnamese stock market has faced several violations, reflecting the challenges of maintaining integrity in a dynamic financial landscape. The Vietnamese Government has commendably demonstrated its commitment to ensuring market soundness by rigorously addressing these infractions. This resolute stance contributes to creating a favorable environment for both domestic and foreign investors, aligning with Vietnam’s strategic goal of promoting a lawful and healthy securities market.
Vietnam’s policy, as evident in its Vision 2045 roadmap, underscores a commitment to international regulations and practices. The government’s approach avoids criminalizing administrative and civil relations, allowing the stock market to flourish without undue interference in economic activities. Under the leadership of the Communist Party of Vietnam (CPV), the nation has maintained political stability, achieved economic growth, and integrated extensively into the global economy.
As Vietnam approaches key milestones in 2030 and 2045, the CPV leadership emphasizes transformative objectives. The vision includes surpassing low-middle-income status by 2025, achieving upper-middle-income status with modern industry by 2030, and ultimately becoming a developed, high-income socialist-oriented economy by 2045. The ongoing 13th party congress plays a pivotal role in determining the trajectory of Vietnam’s post-pandemic reforms, highlighting the importance of selecting the right leadership to guide the nation toward its ambitious goals.
Bridging the Bamboo Bridge: Opportunities Await in India and Vietnam
A promising era of economic collaboration awaits enterprising investors in India and Vietnam, transcending national borders to embrace the vast potential across the Bay of Bengal. In Vietnam, a thriving economy, youthful workforce, and strategic location beckon Indian investors to explore opportunities in sectors such as manufacturing and tourism, complementing India’s expertise in IT, pharmaceuticals, and infrastructure. Conversely, Vietnamese investors can tap into India’s expansive market, particularly the burgeoning middle class, offering avenues for consumer goods, technology, and services.
The synergy between India’s technological prowess and Vietnam’s emerging tech sector presents a platform for innovative collaborations. The stable governance and investment-friendly environment in India provide a secure haven for Vietnamese investments, fostering a reciprocal relationship. Beyond the initial ventures of pioneers like Adani and Vinfast, the vision extends to co-developing smart cities, flourishing tourism, and creating global champions in pharmaceuticals and IT. It’s time to bridge geographical divides, fostering a Bamboo Bridge to a shared future, rewriting the narrative of Asian cooperation and unleashing the potential of a harmonious Indo-Vietnamese economic powerhouse./.
Views are personal. Rajan Kalsotrais an independent economist and policy consultant.