Prime Minister Nguyen Tan Dung has asked the national fag carrier Vietnam Airlines to conduct a study on the possible launching of direct air service linking Vietnam with India.
The new air route would create more favorable conditions for enhancement of economic and trade links between Vietnam and India and other South Asian countries.
Mr. Dung also asked the Vietnam Chamber of Commerce and Industry to map out a plan for establishing the Vietnam-India Business Council.
According to the Government’s website, two-way trade between Vietnam and India rose from USD72 million in 1995 to USD2.4 billion in 2008, exceeding the target of USD2 billion set up by the two governments for 2010.
In 2009, despite the impact of the global economic crisis, the two-way trade between the two countries reached USD2.05 billion , including Vietnam ’s exports of USD420 million to India .
In October 2009, India recognized Vietnam as a country with a fully developed market economy.
The governments of Vietnam and India are hoping that two-way trade between the two countries will reach USD3 billion this year and USD5 billion in 2015.
India has strong points in sectors such as IT, chemicals, automobile manufacturing, railroad engine and car manufacturing, pharmaceuticals and food processing.
In its foreign trade strategies for 2009-14, India has recognized Vietnam as one of its major markets.
Indian companies have paid great attention in Vietnam ’s services sector, including banking and insurance services.
With big investors in Vietnam such as ONGC, Essar, Tata Steel, Larsen &Turbo, Ranbaxy, Godrej , India is now listed among the top 10 investors in Vietnam.