Vietnam and India have potential for automobile cooperation: according to insiders

Nguyen Anh Tuan, Deputy Director of the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment (MPI), remarked that investment ties between Vietnam and India have not yet reached their full potential. He recently stated at the India-Vietnam Business Meet on Auto Sector held in Hanoi that India's FDI in the Southeast Asian nation accounts for only 0.2% of the total FDI.

Vietnam and India have potential for automobile cooperation: according to insiders.

The 800-member Automotive Component Manufacturers Association of India (ACMA) wished to investigate investment opportunities in Vietnam, according to Indian Ambassador Pranay Verma. Nguyen Thi Thu Ha, general director of the consulting firm Invest Global, emphasized Vietnam's great potential to expand the auto industry, which is anticipated to contribute significantly to the national economy.

However, the number of Vietnamese suppliers in the sector remains low, and only a small number of them are part of the country's supply chain for manufacturers and assemblers.A deal between the Vietnamese and Indian auto sectors would be mutually beneficial, according to Ha, who added that a number of Indian firms, including Minda, Spark Minda, and Star Engineering, are already operating effectively in Vietnam.

Vietnam has the potential to expand its market for electric vehicles, according to Dang Hoang Mai of the Vietnam Institute of Strategy and Policy for Industry and Trade. Vietnam's car ownership is only 2.3%, which is one tenth and one twentieth of Thailand and Malaysia, respectively.

Vietnam aims to attract major businesses and groups, with a focus on high-tech, support industries, innovation, and the digital economy, Tuan stated, emphasizing that the time is right for Indian investors to join the Vietnamese auto sector and its support industry.