The Vietnamese government is hoping Indian investors will help reduce the trade deficit.

Deputy Minister for Industry and Trade Le Duong Quang Tuesday told the Vietnam India Business Forum that the strong ties between the two nations – and the forum itself - created a fertile ground for business.

“I would expect a bigger wave of Indian foreign investment into Vietnam after this forum and eventually much stronger exports from Vietnam to India to reduce the trade-deficit between our two countries,” Quang said.

Indian President Pratibha Devisingh Patil told the forum in HCMC that the mutual cooperation between India and Vietnam could lead to bigger and better things for business leaders of both nations.

“The two countries are standing together at the threshold of bigger opportunities and the huge potential would enable us to promote cooperation across various sectors in order to further develop our strategic partnership,” she said.

HCMC’s People Committee Deputy Chairwoman Nguyen Thi Hong said the city government was improving the business environment to attract more foreign direct investment, including from Indian investors, next year in the infrastructure, energy, information technology and pharmaceutical sectors.

The forum, organized by the Vietnam Chamber of Commerce and Industry, the Indian Chamber of Commerce in Vietnam (Incham) and Ho Chi Minh City People’s Committee, attracted hundreds of participants, including business leaders and government officials.

Vietnam-India relations have experienced several key milestones, particularly since the two countries established strategic partnership relations in July 2007 during Prime Minister Nguyen Tan Dung’s historic visit to India.

The two countries’ Prime Ministers also met on the sidelines of the seventh Asia-Europe Meeting (ASEM7) in Beijing, China last month.

Total trade turnover between Vietnam and India has increased from US$72 million in 1995 to more than $1 billion in 2006 and $1.53 billion last year.

In the first nine months of this year, total trade turnover between the two nations topped $2 billion, according to General Statistics Office.

Vietnam exports to India include pepper, electronic components, rubber, machinery, steel, fiber and footwear while its imports from India include medicines, plastics, steel, raw materials pesticides and chemical products.