More than of all projects in manufacturing and processing.
In the first six months of this year India had 101 investment projects in Vietnam with total registered capital of nearly $400 million, ranking the country 30th out of 103 countries and territories investing in the country, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Indian investors invested in 13 of the 21 economic sectors in Vietnam. Projects mostly focused on the manufacturing and processing industry, with 42 and total capital of approximately $231.6 million, accounting for 58 per cent of total capital, followed by mining with three projects and total registered capital of $86 million, or 21.5 per cent. Wholesale, retail and repair ranked third, with 19 projects and more than $52 million in registered capital.
Indian projects were primarily in the form of 100 per cent foreign capital, with 79 projects and $289.5 million, or 72 per cent, being in this form.
Second most common was the business cooperation contract form, with four projects and total investment of nearly $86.3 million, or 22 per cent. The remainder were joint ventures, with 18 projects and $23.6 million, or 6 per cent.
Vietnam and India have signed trade agreements and agreements on double tax avoidance and the promotion and protection of investment. Direct investment from India to Vietnam has nonetheless remained unremarkable.
The Foreign Investment Agency recommended there be more promotions conducted in the future to attract Indian investors. This will particularly apply to fields in which India has strengths, such as information technology, high-technology mining, and environmental friendliness and efficiency.