South-central Vietnam seeks to attract huge investment from India

Localities in south-central Vietnam have actively expanded cooperation with Indian businesses in an effort to lure capital flow from the billion-strong market.

Targeting 500,000 Indian visitors

Vietnam and India are comprehensive strategic partners with huge cooperation potential. Last year, two-way trade exceeded $15 billion, with breakthroughs seen in air and sea links.

Now there are about 50 direct air routes between localities of the two countries, as compared to only six before the Covid-19 pandemic. The first direct sea route was also put into operation by the Vietnam Maritime Corporation.

Vietnamese ambassador to India Nguyen Thanh Hai said that Vietnam-India relations have been developing strongly since the two countries set up diplomatic ties 50 years ago.

"Indian tourists consider Vietnam an attractive new destination for tourism, golf, picnic and wedding activities. Meanwhile, Vietnamese tourists currently not only visit Buddhist places but also want to explore the diverse landscapes in India," he said.

According to Indian consul general in Ho Chi Minh City Madan Mohan Sethi, India ranked ninth out of 10 countries with the highest number of visitors to Vietnam last year, with 109,000 arrivals as of November 2022.

He said the number of Indian tourists to Vietnam has increased sharply since a direct flight from Vietnam to India was inaugurated and this year’s figure may reach half a million.

Indian tourists like to explore the beautiful beaches of Nha Trang town in Khanh Hoa province, not to mention the neighboring provinces of Binh Dinh, Phu Yen and Ninh Thuan, which are home to the Champa culture with impressive temples.

Vo Quang Hoang, chairman of the Khanh Hoa Hotel Association, suggested the local tourism industry learn more about Indian culture and cuisine.

As currently there are no direct air links between Khanh Hoa and India, Hoang emphasized the urgent need to develop flight routes to make it easier for the province to welcome Indian tourists and investors.

Investments from billion-strong market

According to the Ninh Thuan provincial People's Committee, over the past time, the cooperation between this province and India has been more robust. Ninh Thuan has received seven non-refundable aid projects with a total value of $2.1 million from the Indian government.

In the medical field, Apollo Hospitals India agreed to transfer medical examination and treatment techniques to the Ninh Thuan General Institute in some areas. At the same time, it will help the local hospital with short-term human resource training and strengthening the online health system for diagnosis at Apollo Hospitals.

Ninh Thuan authorities have pledged to create the most favorable conditions for Indian investors and businesses in surveying, collecting information and implementing investment registration procedures.

Phu Yen province has so far attracted dozens of foreign projects with a total investment of nearly $2 billion, including two by Indian enterprises namely KCP Vietnam Industries Limited and Olam Vietnam Limited.

KCP Vietnam Industries Limited has been present in the province for more than 20 years, investing in two sugar factories with a total capacity of 11,000 tons of sugarcane per day, making an important contribution to the local socio-economic development.

Phu Yen authorities said they wish to welcome more Indian investors into areas like high-tech industrial park infrastructure, high-tech agriculture, aquaculture, education and health care.

Madan Mohan Sethi said Vietnam and south-central provinces in particular are important partners in India’s development cooperation orientation.

India, with many pro-business policies, high-quality workforce and competitive labor costs, can be a favorable business environment for Vietnamese companies, especially small and medium ones.

The Khanh Hoa People's Committee and the Indian Consulate General in HCMC jointly held a conference on Wednesday to promote cooperation between India and Vietnam's south-central provinces.

The event was attended by more than 70 Indian businesses and leaders of state agencies and companies from Khanh Hoa, Phu Yen, Ninh Thuan and Binh Dinh provinces. It focused on discussing cooperation opportunities in six areas, namely investment, trade, health, education, tourism and information technology.