More banking activities can boost India-Vietnam ties: envoy

Increased banking activities would enhance economic, investment and trade ties between Vietnam and India, Indian ambassador Sandeep Arya said Friday at the Business Meet on India-Vietnam Business and Banking Services.

The event, jointly organized by the Indian Embassy in Vietnam and the Vietnam Banks Association, attracted representatives of some major lenders on both sides.

In his opening speech, Arya mentioned the flourishing economic relationship between the two countries, particularly in the banking and finance sectors.

Stressing that there was enormous room for stronger cooperation between banking and finance enterprises from the two nations, the Indian envoy exhorted participants to share their experiences and business knowhow.

He also suggested that Indian banks expand their reach beyond major cities to other areas in Vietnam.

Nguyen Quoc Hung, vice president and general secretary of the Vietnam Banks Association, said commercials banks from both nations have struck over 256 dealership agreements.

The National Payment Corporation of Vietnam (NAPAS), managed by the State Bank of Vietnam, has worked with its Indian counterpart National Payments Corporation of India to explore collaboration opportunities, he added.

Credit institutions in Vietnam look to learn from India’s experiences in banking services, digital payments, and export and investment promotion to improve their access to credit and financial technology (fintech), Hung said.

Sandeep Kumar Singh, chief manager at the Bank of India’s Ho Chi Minh City branch, mentioned a variety of services offered by the bank, adding that they were considering the launch of several online services including mobile banking and Internet banking.

Trupti Uday Mhatre, deputy general manager of the Trade Assistance Program at the Export-Import Bank of India (Exim Bank of India), spoke about the bank’s role in Vietnam, which included enabling Vietnam business houses to import goods and services from India through collaborations with local lenders.

India is one of Vietnam’s seven comprehensive strategic partner countries as well as its largest trading partner in South Asia. India also ranks among Vietnam’s top eight trading partners overall. Trade between the two countries rose to $14.36 billion in 2023 from $2.75 billion in 2010, with Vietnam’s exports to India going up from $992 million to $8.5 billion in the period.

As of end-2023, India had more than 390 investment projects in Vietnam with a total registered capital of $1.1 billion, according to Vietnam's Ministry of Planning and Investment.