Official Spokesperson (Shri Vishnu Prakash): A very good afternoon to you and welcome. External Affairs Minister of India Shri S.M.Krishna is on his way to Hanoi to co-chair the 14th India Vietnam Joint Commission Meeting on Trade, Economic, Scientific
and Technological Cooperation which will take place tomorrow.
My colleague Dr. Neena Malhotra, Director (South) is here with me to apprise you about this important event that is taking place in our relationship with Vietnam.
The last meeting of the Joint Commission (JCM) was held in New Delhi on the 27th of February, 2007. EAM would be leading an inter-Ministerial delegation which would include senior representatives of the Ministries of Information Technology, Science and Technology
and Home Affairs, ONGC Videsh, Indian Council of Cultural Relations, and our Joint Secretary (South) Arun Goyal, as well as a number of other senior colleagues from MEA.
The Vietnamese Delegation will be led by the newly appointed Foreign Minister of Vietnam His Excellency Pham Binh Minh. By the way, he was born in India, and this was more than fifty years ago when his father, who later became the Foreign Minister of Vietnam,
was the Consul-General of Vietnam in India.
The JCM was preceded by the meeting of the senior officials of MEA led by Joint Secretary (South) and his counterpart DG of the Foreign Office. On 14th – 15th September 2011.
Earlier, the Second India-Vietnam Strategic Dialogue and the Fifth Foreign Office Consultations had taken place - on 8-9 August, which was led by Secretary (East) Mr. Sanjay Singh with Dr. Neena Malhotra, Director assisting him.
Briefly EAM's programme includes, a meeting with his counterpart, followed by JCM. Then, along with the Chairman of Hanoi People's Committee, EAM would be inaugurating the India-Vietnam Advanced Resource Centre which is being financed by India at a cost of
more than $ 2 million with technical support from C-DAC. This is a quality IT training centre which will be operational almost immediately. EAM will also be calling on a number of leaders of Vietnam including the President; and he returns thereafter the next
day.
India and Vietnam have traditionally enjoyed very close and cordial relations which have historical roots. Our ties are marked by a remarkable and even strategic similarity of views and outlooks on regional as well as international issues. During the visit
of PM Nguyen Tan Dung to India in July 2007, India and Vietnam decided to elevate bilateral relations to the level of strategic partnership.
We firmly believe that our cooperation bilaterally as well as at international and regional for a, is also conducive to peace, stability and prosperity in our respective regions, as well as beyond. We are pleased that our relations are steadily intensifying
in a substantive manner and have been receiving the highest level attention. You are aware of a number of high level visits that have been taking place with regularity.
I may add that vibrant relations with Vietnam is a vital pillar of our Look East Policy. We are very appreciative of the role played by Vietnam in helping strengthen our relations with the ASEAN countries and the regional cooperation mechanisms, including
during their Chairmanship of ASEAN last year. And it is last year when PM Dr. Manmohan Singh had visited Hanoi in October to participate in the ASEAN and EAS Summits.
Vietnam has always been a steadfast supporter of India's permanent membership of an expanded UN Security Council. We are pleased that our ties are expanding rapidly and in practically all areas including trade, investments, energy, security, human resource
development, capacity-building, IT, science and technology, culture and so on.
Talking of trade, we are pleased that in the last six years our trade has grown five times clocking a cumulative annual increase of something like 34 per cent in the last five years. This year, in fact the pace of increase has further gone up. We had a target
of two billion dollars by 2010, but actual trade in 2010-11 was almost double that figure at $ 3.65 billion. We are quite hopeful that the modest target of five billion by 2015 is eminently achievable.
Vietnam has also ratified the India-ASEAN FTA on Goods on 1st June, 2010, which is imparting a boost to our trade ties. We are also in the process of setting up a Vietnam-India Business Forum. Given the conducive investment environment in Vietnam, a number
of Indian companies have already made investments, more investments are in the pipeline. Vietnam particularly seeks Indian investments in sectors like high technology, IT, biotechnology, energy including renewable energy, iron and steel, auto components, pharmaceuticals,
medical equipment, food processing, and other areas.
Another important area of cooperation is capacity-building, human resource development, and skill enhancement. We are offering 100 ITEC slots a year to Vietnam which are fully utilized. I have already mentioned that EAM will be inaugurating the Advanced IT
Resource Centre at Hanoi.
The 40th anniversary of establishment of diplomatic relations with Vietnam falls next year, and the two countries are keen to celebrate this landmark in a befitting manner. We also have an active cultural programme between the two countries. Earlier this year
with effect from 1 January, we have extended the visa-on-arrival facility to Vietnam. Currently I think we extended this facility to eleven countries.
The visit of EAM and JCM Meeting will also be preparatory to the forthcoming visit of the President of Vietnam to India. During JCM both sides will take stock of the implementations of the initiatives and decisions that have taken place in the preceding
years and also would look at a roadmap to take our relationship further, to maintain the momentum in our bilateral ties. The visit and JCM are expected to further solidify our traditional friendship and inject greater substance in our strategic partnership.
Thank you. We will be happy to take your questions.
Question: Sir, there are reports of China objecting to ONGC Videsh's venture in Vietnam. Can you shed some light on that please?
Official Spokesperson: I did allude to the fact that we have a very active programme of trade and economic cooperation with Vietnam. One of the facets of this cooperation is our cooperation in the area of energy, hydrocarbons, as well as renewable energy.
ONGC Videsh has been present in Vietnam for quite some time, including in a major joint venture for offshore oil and natural gas exploration. They are in the process of further expanding their cooperation and operations in Vietnam. Also ESSAR Exploration and
Production Limited, which is a subsidiary of ESSAR Oil, has been awarded an oil and gas block in Vietnam. So, as I said, this is one important area of cooperation and we would like to see this cooperation grow. Suffice it to say that our cooperation with Vietnam,
and for that matter with any country in the world is always as per international laws, norms and conventions.
Question: China has also warned Indian vessels to stay out of their waters in South China Sea. Do you believe it is linked to this current issue of India prospecting for oil in the seas which China also claims as its own or something else?
Official Spokesperson: As far as this - you are calling it an issue, I am not – facet of economic cooperation in the energy sector is concerned, I have already touched upon that. As far as navigation in the South China Sea is concerned, you would have
seen my statement where we had outlined our views on the matter. I will be happy to reiterate that India supports freedom of navigation in the South China Sea and hopes that all parties to the dispute will abide by the 2002 Declaration of Conduct in the South
China Sea.
Question: According to reports, China's Foreign Affairs Ministry has today objected to India's plans to go forward on oil exploration through ONGC Videsh, and said it will be illegal and the companies will have to be prepared for the consequences. What
is your reaction?
Official Spokesperson: I have already responded to this question in considerable detail. I have outlined the nature of our cooperation with Vietnam. I have emphasized that cooperation in the field of energy - after all for us energy security is very
important - hydrocarbons, renewable energy is an important facet of our cooperation. I have mentioned to you that a number of Indian companies are already cooperating closely. We are looking at further enhancing cooperation in the years ahead.
Question: …(Inaudible)…
Official Spokesperson: Do not you think you should be asking that question to China? I can only tell you what I know, and I have given you my position.
Question: …(Inaudible)…
Official Spokesperson: I can only tell you how we view the position, right? I do not think I need to say any more because I have elaborated on how we view our relation and cooperation in this important area with Vietnam.
Question: In what way will this visit change the strategic paradigm of India's Look East Policy as far as Vietnam is concerned? In what way are we going to intensify our defence relationship with Vietnam? And is a formal strategic partnership with
Vietnam on the anvil?
Official Spokesperson: I thought I have mentioned that in 2007, during the visit of the Prime Minister of Vietnam we had unveiled a strategic partnership with Vietnam. That was four years ago. The relationship which has always been close, which has been
cordial, which has been substantive, has been acquiring greater momentum, greater depth. We have had unprecedented high-level attention to the relationship. We have had high-level visits of Prime Ministers, Presidents, Secretary-General of Vietnam. I have
already touched upon various facets of cooperation. For us, our relationship with Vietnam, is an important pillar, a vital pillar, a key pillar of our Look East Policy. If you see how our relationship since 1992 in particular has evolved with the ASEAN countries,
it is quite evident that this has been a resounding success. Last year, we operationalsed the Free Trade Agreement in Goods with ASEAN. How much is the trade with ASEAN?
Director (South) (Dr. Neena Malhotra): The India-ASEAN trade currently is 57.1 billion dollars.
Official Spokesperson: So, you have very robust trade and economic cooperation. We are looking at concluding a FTA in Services and Investments with ASEAN. We have a number of comprehensive economic partnerships already signed with Malaysia, with Singapore,
FTA with Thailand. Next year for the first time the India-ASEAN Summit will be held in India. I have only touched upon a few facets, but this is quite indicative of how closely we are engaging with ASEAN countries in general and Vietnam in particular. I may
also add that building of relationships with any country is a process, and every major visit adds to substance and content in the relationship between the country and the region.
Question: You did mention about this expanding cooperation in the field of oil exploration and ONGC Videsh is looking at certain pockets. Could you just explain what the areas they have been looking at and what the pockets are?
Official Spokesperson: This is work in progress. We are discussing various options, various possibilities. This is an ongoing exercise. I can tell you what has already taken place, what is taking place, and how we view that cooperation.
Question: What is the total investment …(Inaudible)…ONGC …(Inaudible)…
Director (South): The total Indian investment in Vietnam is over 400 million dollars. OVL is one of the largest investors. I think it is over 225 million dollars. They have been doing exploratory drilling in some of the blocks awarded to them already.
The other major investor is Phillips Carbon Black. I think they have recently signed an agreement on this 84 million dollar project on this carbon black which would be the first project of that nature in Vietnam. Then of course there are other various investors
like ESSAR, Nagarjuna, Venkateshwara Hatcheries, and …(Inaudible)…
Question: Since all these explorations are happening in South China Sea, what are the security arrangements for these projects? What is the government doing?
Official Spokesperson: Any commercial venture, onshore or offshore, will take the necessary precautions and arrangements that are deemed necessary by the joint venture or the commercial venture. This is standard operating procedure anywhere in the
world. Whatever is the need of the hour, depending on the nature of the business, the investment environment, the country in which you are, an entrepreneur takes his decisions.
Question: The Vietnamese port in …(Unclear)… I believe, we have facilities there. Could you elaborate on that?
Official Spokesperson: What I know is that security and defence cooperation is again an important facet of cooperation with Vietnam. We have a memorandum of defence cooperation that was concluded in 2009. We have regular high-level exchanges, visits
– both mil to mil, as well as at the political and official levels. Our Defence Minister was in Vietnam last year in October. Our ships regularly pay port calls in Vietnam and vice versa. We have joint training. We have exchange of information. With any friendly
country the kind of security and defence cooperation that we have, we have with Vietnam.
Thank you.
(Concluded)
New Delhi
September 15, 2011