"The extensive cooperation between India and Vietnam is a continuation of a long-standing historical relationship"

DNHN - This is also the assessment of Dr. Majo George, an Indian lecturer currently teaching at RMIT University Vietnam, when considering the significance of the recent state visit of the Prime Minister of Vietnam to India.

A catalyst for advancing Vietnam-India relations into a new phase

At the invitation of the Prime Minister of the Republic of India, Narendra Modi, Prime Minister Pham Minh Chinh paid a state visit to India from July 30 to August 1. The visit was highly successful in all aspects, contributing to reviving and promoting the historical values and sediments in the Vietnam-India relationship, which has existed for thousands of years and has been continuously nurtured by generations of leaders and people of the two countries. It opens a new chapter in the Vietnam-India Comprehensive Strategic Partnership.

Speaking about the significance of Prime Minister Pham Minh Chinh's state visit to India, Dr. Majo George, an Indian senior lecturer in Supply Chain Management and Logistics at RMIT University Vietnam, commented: "The visit marked an important moment in strengthening Vietnam-India relations. It occurred at a time when India is most interested in investing in Vietnam, highlighting the strong political trust and long-standing friendship between the two countries.

Built on many years of mutual respect and shared strategic interests, according to Dr. Majo George, the visit serves as a crucial foundation for solidifying the Comprehensive Strategic Partnership between the two countries. The significance of the visit lies in the potential to expand cooperation in many areas, including defense, trade, technology, manufacturing, port and airport management, as well as cultural exchanges.

According to the latest information, during the Prime Minister's visit, Indian conglomerates expressed interest in Vietnam and planned to invest billions of US dollars in various sectors. These projects mark a significant step forward in the increasingly close economic and strategic relationship between the two nations.

Notably, Gautam Adani, one of India's most influential billionaires, announced plans to invest $2 billion in the construction of Lien Chieu Port in Da Nang.

This port will not only contribute to improving Vietnam's maritime infrastructure but also serve as a crucial node in the regional and global supply chain. The investment aligns with Vietnam's strategic goal of becoming a logistics hub in Southeast Asia.

In addition to port development, the Adani Group also expressed interest in participating in the second phase of Long Thanh International Airport and expanding Chu Lai Airport.

In another promising development, BDR Pharmaceuticals, a leading Indian pharmaceutical group, aims to establish a facility for manufacturing cancer treatment drugs in Vietnam.

The announcements of significant investments by major Indian companies in Vietnam reflect their confidence in the country's market potential and are likely to encourage further interest from the industry.

"The deepening cooperation between India and Vietnam is not a new phenomenon but a continuation of a long-standing historical relationship. The two countries have always supported each other on international forums and have pursued a policy of building strong political, economic, and defense ties. As Vietnam seeks to diversify its economy and reduce reliance on traditional economic sectors, the expertise and experience of Indian businesses can play a key role in this transition. Indian capital and technology will not only support Vietnam's infrastructure but also pave the way for knowledge transfer, skill development, and innovation. This visit by Prime Minister Pham Minh Chinh not only consolidates the existing partnership but also lays the groundwork for new cooperative efforts that will benefit both nations," Dr. Majo George commented.

Vietnamese businesses face challenges to seize opportunities

The Prime Minister's visit, in addition to helping Vietnam attract more investment capital from India, is also seen as a driving force providing Vietnamese businesses with significant opportunities to leverage current and future Indian investments.

According to Dr. Majo George, the potential Indian investment inflow offers Vietnamese businesses many opportunities but also poses several challenges that need to be addressed. These challenges include:

Firstly, the competitive landscape. Vietnamese businesses must face intense competition not only from other domestic companies but also from ASEAN and African businesses vying for Indian investment. To stand out, Vietnamese companies must offer a unique value proposition or demonstrate superior performance. Vietnamese businesses need to focus on enhancing their competitiveness through improved operational efficiency, quality standards, and customer service. They should also invest in innovation and adopt best practices to differentiate themselves from competitors.

Secondly, regulatory and compliance requirements. Indian investors often demand adherence to strict standards and legal frameworks, especially in fields such as technology, manufacturing, and pharmaceuticals. Vietnamese businesses may find it challenging and unfamiliar to meet these expectations, particularly if they are accustomed to different regulatory environments. Therefore, they should focus on understanding and adapting to international and Indian regulatory standards. They can seek legal and compliance experts to help navigate complex regulations and ensure smooth business operations.

Next is the cultural and communication barrier. Differences in business culture and communication styles can lead to misunderstandings and hinder effective partnership building. To overcome this, Vietnamese businesses can participate in training programs to enhance cultural competence and communication skills. By understanding Indian business practices and cultural nuances, they can build stronger and more effective partnerships with Indian counterparts.

The fourth challenge is the lack of market knowledge. Understanding Indian business practices, market dynamics, and consumer behavior is crucial. A lack of understanding of these aspects can lead to misguided strategies and missed opportunities. Therefore, Vietnamese businesses need to conduct thorough market research and gain insights from Indian business experts to bridge the knowledge gap. They should consider establishing joint ventures or partnerships with Indian companies to gain deeper market insights. Additionally, they should expand their network by connecting with the Indian business community and participating in trade fairs, exhibitions, and business forums to gain insights and foster collaboration.

Finally, infrastructure and technology limitations cannot be overlooked. To attract Indian investment, Vietnamese businesses may need to upgrade their infrastructure and technological capabilities. Necessary tasks may include modernizing facilities, adopting new technologies, and enhancing supply chain efficiency.

"By proactively addressing these challenges through strategic actions, Vietnamese businesses can better position themselves to attract and benefit from Indian investment, fostering a mutually beneficial economic partnership," Dr. Majo George suggested.

Which sectors could be prioritized for cooperation between businesses of the two countries?

The potential for cooperation between Vietnamese and Indian businesses is expected to extend across many sectors. According to Dr. Majo George, potential sectors for Indian businesses in Vietnam include alternative energy, manufacturing, agriculture, trade, infrastructure development, and defense cooperation.

Specifically, in the field of alternative energy, Indian companies can play a crucial role in Vietnam's renewable energy sector by investing in solar, wind, and other sustainable energy projects. India's expertise in these technologies can support Vietnam's sustainability goals and energy diversification.

In manufacturing, establishing production facilities in Vietnam allows Indian businesses to leverage Vietnam's strategic location and trade agreements, enhancing access to regional markets and industrial capabilities.

In agriculture, investment in Vietnamese agriculture, focusing on high-demand products such as pepper, coffee, tea, cashew nuts, rice, and livestock, can boost productivity and quality. India's expertise can help improve agricultural practices and supply chain management.

In trade, Indian businesses can expand their trade activities in Vietnam, particularly in areas such as consumer goods, pharmaceuticals, and textiles. This will serve Vietnam's growing middle class and expanding retail market.

In infrastructure development, Indian businesses can collaborate with the government and Vietnamese businesses in infrastructure development, particularly in the railway, road, and waterway systems. India's advancements in these areas can provide valuable insights and opportunities for cooperation. The construction and management of ports and airports are also of interest.

In defense cooperation, the existing strong defense partnership can be further strengthened as Vietnam seeks India's expertise in military training, defense equipment procurement, and the development of joint defense initiatives.

Conversely, for Vietnamese businesses in India, Dr. Majo George believes potential sectors include healthcare, tourism, information technology, agriculture, space technology, and educational cooperation.

Specifically, in healthcare, Vietnamese healthcare providers can leverage India's expertise in affordable pharmaceuticals and medical technology to enhance healthcare services in Vietnam. Cooperation between the two sides can help reduce costs and improve access to quality medical products.

In tourism, Vietnamese tourism companies can promote India as a destination for leisure, pilgrimage, and medical tourism. India's rich cultural heritage, diverse attractions, advanced healthcare facilities (for medical tourism), and religious tourism sites can attract Vietnamese tourists.

In information technology, the IT sector offers opportunities for Vietnamese businesses to collaborate with India's globally renowned IT companies. Through this, Vietnam can achieve further advancements in digital infrastructure, software development, and cybersecurity.

In agriculture, Vietnam can significantly benefit from India's advanced agricultural technology. Cooperation in this field can improve agricultural productivity, introduce advanced farming techniques, and enhance crop yield quality. By integrating India's modern farming expertise, Vietnamese farmers can achieve higher efficiency and sustainability.

In space technology, Vietnam can also seek cooperation with India in the field of space technology. India's capabilities in satellite development, space exploration, and related technologies can help Vietnam expand its technological capacity. Joint initiatives could include satellite launches, space research, and the development of space-based applications for communication, weather forecasting, and environmental monitoring.

Finally, in terms of educational cooperation, Vietnamese universities and secondary schools can establish partnerships with Indian educational institutions to offer high-standard higher education at affordable costs. This cooperation could include student and faculty exchanges, joint research programs, and the sharing of educational resources. By leveraging India's strengths in various academic fields, Vietnamese educational institutions can enhance the quality of their services and provide students with broader learning opportunities.

"By seizing these opportunities, Vietnam and India can capitalize on their complementary strengths, fostering innovation and sustainable economic growth. This comprehensive partnership will not only enhance the prosperity of both nations but also contribute to regional stability and cooperation, laying the foundation for a long-lasting and mutually beneficial relationship," Dr. Majo George commented.

Bao Bao