India, Vietnam should explore possibility of free trade pact: Vietnamese PM Chinh

New Delhi, Jul 31 (PTI) India and Vietnam should explore the possibility of a free trade pact to further strengthen the economic cooperation, Vietnamese Prime Minister Pham Minh Chinh said on Wednesday.

Chinh, who is accompanied by a high-level delegation, including several ministers, deputy ministers and business leaders, is on a three-day visit to India.

Going forward, the two nations should aim to increase their bilateral trade to USD 20 billion, the Vietnamese Prime Minister said while addressing the Vietnam-India Business Forum.

"I would like to ask that we expand our...market access to each other's products such as through a suitable FTA between Vietnam and India. Of course, we need to discuss this...We need to make sure that our benefits are shared with each other for Indian businesses. I hope that you (India) would continue to invest and invest more in Vietnam," he said at the Business Forum organised by Ficci.

Speaking on the occasion, Jitin Prasada, Union Minister of State for Commerce & Industry, and Electronics and Information Technology, called for stronger economic cooperation between India and Vietnam, emphasising the complementary nature of their growth strategies and the potential for mutual benefit.

The minister mentioned ongoing trade negotiations, including the review of the India-ASEAN Trade and Goods Agreement of 2009, set to be completed by 2025, and the Indo-Pacific Economic Framework negotiations. These could further enhance economic cooperation between India and Vietnam.

The Vietnamese Prime Minister further called upon businesses from the two nations to work together, bring about better solutions to raise bilateral trade to USD 20 billion going forward, and continue to forge stronger cooperation focusing on strategic infrastructure, including transportation, energy, digital and climate infrastructure.

"I've spoken to many Indian businesses. I called on them to make investment into infrastructure, including strategic infrastructure, transportation, health, educational, cultural and all the rest of it," Chinh said.

He further called upon businesses of the two countries to work together to realise their "shared aspirations" and to build the strategic, comprehensive strategic partnership between Vietnam and India. The Vietnamese Prime Minister also participated in the launch ceremony of the new flight route between Ahmedabad (India) and Da Nang (Vietnam). Pointing out that Vietnam imports 33 per cent of its pharmaceutical products from India, Chinh said it would like to work with India to establish a proper pharmaceutical ecosystem in Vietnam.

Besides, Prasada highlighted the economic synergies between India and Vietnam, noting that both countries are growing at nearly double the average global economic growth rate.

"Both our countries are focused on improving our manufacturing prowess and playing a greater role in the global value chains and world economy," he said.

The minister called for increased attention to opportunities in each other's markets, pointing out that while larger global markets are important, the potential for bilateral trade should not be overlooked.

He mentioned India's recent participation as the guest of honour at the 33rd Vietnam International Trade Fair in Hanoi, indicating growing economic ties between the two nations.

"I believe that our businesses should really need to focus on each other, much more than we are doing presently," Prasada urged.

He expressed the Indian government's desire to promote and support business linkages between the two countries. PTI RSN SHW