With India recognizing Vietnam as a market economy, Vietnamese businesses can increase exports to the South Asian giant with confidence, Indian Ambassador to Vietnam Lal Muana told the Dau tu (Investment) weekly.
A memorandum of understanding on the event was signed on October 25, the closing day of the 15th ASEAN Summit in Cha-Em, Hua Hin, Thailand.
India’s grant of the market economy status to Vietnam has been reciprocated with Vietnam joining the ASEAN-India Free Trade Agreement (FTA) inked with other members of the 10-nation block this August during the ASEAN Economic Ministers conference in Thailand. This means that India will treat Vietnam as an equal member of the World Trade Organization and apply its provisions to Vietnamese imports, Muana said.
Under the agreement, which will take effect on January 1, 2010, ASEAN and India will lift import duty rates for over 80 per cent of products during 2013-2016.