Indian corporations and billionaires have expressed their commitment to invest billions of U.S. dollars in a series of projects in Vietnam, contingent on the Southeast Asian country providing preferential policies.

This commitment was discussed during meetings between Vietnamese Prime Minister Pham Minh Chinh and Indian business leaders in New Delhi on Wednesday, as part of the premier’s visit to India. PM Chinh and his delegation arrived in New Delhi late Tuesday evening (local time) to begin a state visit aimed at enhancing multifaceted cooperation under the comprehensive strategic partnership with the South Asian nation. His visit, which concluded on Thursday, was made at the invitation of Indian Prime Minister Narendra Modi.

The top Vietnamese official received dozens of Indian business leaders and attended the Vietnam-India Business Forum on Wednesday.

At the meetings, the prime minister pointed out some fields where Vietnam is attracting foreign investment, including infrastructure, seaports, airports, pharmaceuticals, energy, and oil and gas.

Several Indian investors have come to Vietnam to survey the market and explore cooperation opportunities, while also anticipating the removal of certain obstacles to implement projects in these areas.

Gautam Adani, founder and chairman of Adani Group, the largest Indian conglomerate specializing in infrastructure and energy, expressed his desire to invest in seaport and energy plant projects in Vietnam.

He wanted to pour 100 percent of the capital, equivalent to over $2 billion, into a smart port project in Lien Chieu District, Da Nang City, central Vietnam but the intention seems to be hindered by the regulation on foreign investment, which allows foreigners to own just 49 percent of the total investment, he said.

Adani also expected to invest in the Chu Lai and Long Thanh airport projects, as well as the Vinh Tan 3 thermal power plant with a combined capital of nearly $3 billion. 

Therefore, he hoped the Vietnamese side would create more favorable conditions related to investment procedures and climate to smooth the firm’s plans.

Besides, multiple pharmaceutical firms such as SMS Pharmaceuticals, Sri Avantika Contractors, and BDR Pharmaceuticals Internationals Pvt. Ltd. presented their intention to inject some $5 billion into a pharmaceutical production facility in Nghi Son Economic Zone in Thanh Hoa Province, north-central Vietnam.

These firms also want to build a cancer medicine manufacturing plant in the Southeast Asian nation.

Moreover, many other secondary investors plan to transfer technology and train employees, smoothing the path for Vietnamese firms to strengthen the local pharmaceutical ecosystem.

As for the oil and gas field, Arun Kumar Singh, chairman of Oil and Natural Gas Corporation Limited (ONGC), expected to exploit oilfields in Vietnam.

Addressing the meeting with the prime minister, Shikhar Malhotra, director of HCL, said that the Indian firm has cooperated with Vietnam’s Viettel in 5G services and IT infrastructure.

Also, numerous Indian firms showed their interest in the Vietnamese market at the forum attended by PM Chinh.

Jitin Prasada, Union Minister of State for Commerce & Industry, Electronics and Information Technology, underlined that Vietnam boasts a dynamic, developing economy with in-depth international integration.

India’s ‘Look East Policy’

Speaking at the forum, PM Chinh reiterated Prime Minister Modi’s statement about the ‘Look East Policy’ of India, which has fostered bilateral ties, with a focus on the economic sphere.

The Vietnamese premier called on Indian enterprises to expand their reach in Vietnam and upskill staff in the semiconductor, innovation, pharmaceutical, hydrogen, renewable energy, and digitalization areas.

He affirmed that the Vietnamese government always creates favorable conditions and offers incentives to lure investors.

Vo Xuan Vinh, deputy director general of the Institute for Southeast Asian Studies, told Tuoi Tre (Youth) newspaper that India sees Vietnam as one of the cornerstones of its ‘Look East Policy,' which is the effort by the Indian government to boost economic and strategic relations with Southeast Asian nations.

He suggested the Vietnamese government perfect the legal system to attract and retain foreign investors.

In addition, Vietnam and India should effectively deepen their partnership in some spearhead sectors such as software, semiconductor, green energy, AI, hi-tech agriculture, defense, and medicine and medical equipment production.

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