HÀ NỘI — The Vietnamese Government continues to perfect the legal framework and policies to create a favourable business climate for foreign investors, which are regarded as one of the most important parts of the nation’s economy.

President Trần Đại Quang delivered this statement at a reception celebrating Chief Executive of Tata Group in Việt Nam Indronil Sengupta’s visit to Hà Nội yesterday.

During the event, the president hailed Tata’s business expansions in Việt Nam and expressed his belief that the completion of the group’s Long Phú 2 thermal power plant in the Cửu Long (Mekong) Delta province of Sóc Trăng will contribute to accelerating bilateral relations between the two countries and encourage more Indian business investment in Việt Nam.

He said there remains room for Vietnamese and Indian businesses to speed up trade and investment co-operation, especially because the two countries have actively joined a number of free trade deals and established a comprehensive India-Việt Nam strategic partnership in September, 2016.

He called on the Tata Group to better utilise these untapped opportunities so that India soon can become one of Việt Nam’s leading foreign investors.

The President outlined electricity, machinery, engineering and infrastructure development as promising sectors where the group could make fruitful Vietnamese investments.    

For his part, Indronil Sengupta said Tata group plans to develop new projects in Việt Nam. These projects will be involved in several industries, like renewable energy, coffee processing, automotive and agricultural machinery, he said.

Bilateral trade between Việt Nam and India has increased significantly over the last decade, from US$1 billion in 2006 to $5.5 billion last year, according to the Vietnamese Trade Office in India.

During this period, Việt Nam’s exports to the South Asian country have grown by a whopping 250 per cent.

The two nations have targeted raising bilateral trade to $15 billion by 2020.

In term of investment, Indian businesses had 19 new projects and four capital-added ones with a combined investment capital of over $100 million in 2016, according the Foreign Investment Agency (FIA).

The latest additions have brought Indian investment in Việt Nam as of last year up to $724 million. India ranks 25th among 116 countries and territories investing in the country, said FIA. — VNS