engineering goods from the border state.
"Our economy is growing fast and there is huge potential of bi-lateral trade in infrastructure sector in the form of exporting engineering goods from India, especially from Punjab, where manufacturers of auto-parts, hand tools and agriculture equipments have already proved their mettle by producing products of international quality", ambassador of Socialist Republic of Vietnam in India Nguyen Thanh Tan told Hindustan Times, on the sidelines of the meeting with the Punjab's industrialists to boost bi-lateral trade.
"Apart from import duty exemption on certain items, Double Tax Avoidance (DTA) agreement for providing foreign tax credit to the entrepreneurs has been signed with India", the ambassador said, adding that Corporate Income Tax is just 20% and losses are allowed to be carried forward for five years in Vietnam.
"Business environment is conducive, land is not very expensive and labour is very cheap in Vietnam", Tan said adding that India's relations with Vietnam are marked by growing economic and commercial engagements between the two countries, especially in the recent years.
"India is now among the top ten trading partners of Vietnam and bilateral trade has seen continuous growth during the past few years", he said, adding that last year when the two countries were celebrating the 40th anniversary of full diplomatic relations, the amount of bilateral trade touched 3.94 billion US$ and in the current fiscal it is expected to cross 5 billion US$.
"We are approaching Indian auto-mobile manufacturer TATA to supply us their low value cars, Nano, as there is huge demand of it in our country", he added.
While addressing the Punjabi entrepreneurs, Tan, said that next month from October 10 to 12 an international exhibition Indee-Vietnam is being organised in the economic hub town of Ho Chi Minh City, where they could exhibit their products to explore the export opportunities.
"India is a partner country in the upcoming exhibition, where machine tools would be the focused products", Tan said adding that a delegation of Vietnam entrepreneurs would participate in the India Engineering Sourcing Show, scheduled to be held in Mumbai from January 22 to 24 by Engineering Export Promotion Council (EEPC).
Welcoming the initiative taken by the Vietnam government to attract Indian entrepreneurs, Regional chairperson of EEPC, Kamna Raj Aggarwala said "We all look forward for export opportunities in other countries and if Vietnam extends its support, bilateral trade could be multiplied with the country".
Prominent among others who were present on the occasion include, joint director general of Foreign Trade (DGFT) Darshan Singh, regional director of EEPC, Rakesh Suraj, deputy director Opinder Singh and senior official of Export Credit Gaurantee Corporation of India (ECGC) Rahul.