Vietnam Keens on Welcoming Indian Investment in Infrastructure

Vietnam welcomes partners, including those from India, who are interested in investing in infrastructure

View of an elevated road system in HCM City. VGP Photo
View of an elevated road system in HCM City. VGP Photo

Vietnam welcomes partners, including those from India, who are interested in investing in infrastructure, especially strategic infrastructure in the country, including transportation, energy, digital, and climate-adaptive infrastructure, Prime Minister Pham Minh Chinh told CEO of the Adani Group’s Adani Ports and SEZ Limited (APSEZ) Karan Adani during a reception in Hanoi on May 24.

The PM told his guest that during the recent expanded Summit of the Group of Seven in Japan, he met with his Indian counterpart Narendra Modi to discuss measures and orientations to promoting bilateral cooperation that matches with the potential of their comprehensive strategic partnership.

Informing Adani about national development, he said Vietnam is building an independent and self-reliant economy that actively pushes forward extensive and effective global integration, toward becoming a developing country with modern industry and high-middle income by 2030 and a developed country with high income by 2045.

Vietnam is focusing on three strategic breakthroughs, namely fine-tuning institutions, developing human resources and building infrastructure, he said.

During this process, he said Vietnam effectively mobilises and utilises all resources for development. Internal resources are considered fundamental, strategic, long-term and decisive while external resources are seen as important, breakthrough-oriented and regular.

At the event. Photo: VNA
At the event. Photo: VNA

Adani, for his part, said Adani is the biggest economic conglomerate in India operating in various sectors such as port, transportation, logistics, energy, and digital technology in over 50 countries worldwide.

The group spent time on exploring opportunities in Vietnam and decided to make long-term commitments in the country, not only in port and logistics but also in energy and digital technology. Specifically, Adani aims to build an eco-friendly port ecosystem and invest in wind and solar power plants there, with a total capital of about USD 10 billion, in accordance with Vietnam’s development strategy, he added.

PM Chinh stressed that Vietnam welcomes Adani’s investment in these sectors, particularly in the development of Lien Chieu port in the central city of Da Nang and renewable energy projects in Vietnam.

Vietnam is ready to create even more favourable conditions for Indian companies and major conglomerates, including Adani, to do business in the country, he said.

He hoped that Adani will expand investment in this field and work effectively with Vietnamese partners to achieve specific results.

Agreeing with the PM’s suggestions, Adani said APSEZ will work closely with Vietnamese stakeholders to launch specific projects, contributing to effectively promoting bilateral comprehensive strategic partnership as expected by the PM.

The same day, an India-Vietnam multi-sectoral business interaction organized by Indian Embassy on May 25 with 20 visiting members of PHD Chamber of Commerce & Industry, Indian Business Chamber Hanoi, Hanoi Promotion Agency, Invest Global and over 100 businesspersons from Vietnam.

Representatives of companies in healthcare, renewable energy, infrastructure, electrical power, logistics, food processing discussed trade, investment & business collaboration opportunities between India and Vietnan.

According to estimates from the Asian Development Bank (ADB), by 2030, Vietnam’s basic infrastructure investment needs will amount to around USD 480 billion.

Infrastructure projects play a key role in spearheading the country’s socio-economic development, especially those in the transport and industrial sectors.

To speed up the process, the government has implemented several legal frameworks and policies, including the Law on Investment in the Form of Public-Private Partnerships (PPP) in 2020 and several decrees and regulations. Such moves aim to provide comprehensive guidelines and regulations on how to form public-private partnership projects.

However, there are still many shortcomings and limitations, according to economists.

Hannah Nguyen