I. FDI from Indian companies in Vietnam
By the end of April of 2015, Indian investors ranked 30 among 101 foreign countries and territories in Vietnam with 99 existing projects worth 379.2 million USD.
-By sector:
According to statistics, Indian investors had invested in 13 of 18 business sectors in Vietnam.
In particular, the field of processing and manufacturing industries topped the list with 41 projects worth $211.6 million in registered capital, accounting for 55.8 percent of total investment.
The sector drawing the second-most attention from Indian investors is mining, with only 3 projects worth a total $86 million in registered capital, accounting for 22.67 percent of total investment.
It is followed by sector of wholesale and retail, with 19 projects with registered capital of $51.08 million, representing 13.73 percent of total investments.
- By forms of investment:
Firms managed by Indian investors in Vietnam mainly uses form of a 100-percent foreign-owned firm. With this form Indian investors had 77 projects with $269.2 million, accounting for 71% of total investment.
-By province:
Except 3 projects of oil exploration, Indian investors have invested in 22 out of 63 provinces and cities in Vietnam, with investment focusing on large cities with better infrastructure development. The most are located in Ho Chi Minh City, with 36 projects worth $54.9 million in registered capital. HCMC is followed by Tuyen Quang (03 projects, $45 million. The third position is Bac Ninh with 2 projects worth $40.5 million.
- Top three largest projects of Indian investors in Vietnam (except 3 projects of oil exploration)
+ Project of Viet Hung Company Limited in Ho Chi Minh city, investment license issued on 19th Januay of 2015 with total investment of $47.6 million, doing trade in food and vegetable, specializing in rice milling, processing.
+ Project of Unilever Vietnam International Company Limited in Bac Ninh province, investment license issued on 8th December of 2014 with total investment of $40 million, doing business in producing health care products for family.
+ Project of Bohra Industries Company Limited in Nghe An, investment license issued on 15th February of 2015 with total investment of $24 million, doing business in manufacturing of phosphatic fertilizers
II. Investment from Vietnam to India:
Until now, Vietnam had 5 projects investing in India with total investment of $1.81 million, mainly focusing on distributing products for livestock, doing business in builiding materials, exporting beauty products and IT products.
Indian companies have a strong advantage of developing IT. In recent years, many Indian investors have started doing business in Vietnam in many sectors, such as developing software, textile, banking and finance and food for livestock. It can be seen by an increase of Indian investment in Vietnam. However, as mentioned above, Indian investors ranked 30 among 101 foreign countries and territories in Vietnam. This position is not corresponding with the potential cooperation between Vietnam and India. Both sides need to coopearte to organize investment promotion activities to strengthen investment between Vietnam and India.