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LATEST NEWS UPDATES | Lessons from Vietnam and Bangladesh -Ajay Srivastava </title>
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have..."/>
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have..." />
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<h1 class="cat-box-title">Lessons from Vietnam and Bangladesh -Ajay Srivastava</h1>
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Published on</span><span class="text-date"> Nov 10, 2020</span>
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<p style="text-align:justify">-The Hindu</p><p style="text-align:justify"><em>With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments</em></p><p style="text-align:justify">Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have grown by about 240% in the past eight years. What has helped them? And what can India learn from them?</p><p style="text-align:justify"><em>Two nations and their success stories</em></p><p style="text-align:justify">An open trade policy, a less inexpensive workforce, and generous incentives to foreign firms contributed to Vietnam’s success. Vietnam pursues an open trade policy mainly through Free Trade Agreements (FTAs) which ensure that its important trading partners like the U.S., the EU, China, Japan, South Korea and India do not charge import duties on products made in Vietnam. Vietnam’s domestic market is open to the partners’ products. For example, 99% of EU products will soon enter Vietnam duty-free.</p><p style="text-align:justify">Vietnam has agreed to change its domestic laws to make the country attractive to investors. Foreign firms can compete for local businesses. For example, EU firms can open shops, enter the retail trade, and bid for both government and private sector tenders. They can take part in electricity, real estate, hospital, defence, and railways projects. This model may not be good for India as it offers no protection to farmers or local producers from imports. Vietnam being a single-party state can ignore domestic voices.</p><p style="text-align:justify">Over a decade or so, large brands such as Samsung, Canon, Foxconn, H&M, Nike, Adidas, and IKEA have flocked to Vietnam to manufacture their products. Last year, Vietnam received investments exceeding $16 billion. As a result, Vietnam’s exports rose from $83.5 billion in 2010 to $279 billion in 2019.</p><p style="text-align:justify">In Bangladesh, large export of apparels to the EU and the U.S. make the most of the country’s export story. The EU allows the import of apparel and other products from least developed countries (LDCs) like Bangladesh duty-free. Sadly, Bangladesh may not have this facility in four to seven years as its per capita income rises and it loses the LDC status. Bangladesh is working smartly to diversify its export basket. India, as a good neighbour, accepts all Bangladesh products duty-free (except alcohol and tobacco).</p><p style="text-align:justify">Please <a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" title="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true">click here</a> to read more.</p>
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<br><a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" class="re" target="_blank">The Hindu, 10 November, 2020, https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true</a><div class="clear"></div>
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LATEST NEWS UPDATES | Lessons from Vietnam and Bangladesh -Ajay Srivastava </title>
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
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<h1 class="cat-box-title">Lessons from Vietnam and Bangladesh -Ajay Srivastava</h1>
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Published on</span><span class="text-date"> Nov 10, 2020</span>
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<p style="text-align:justify">-The Hindu</p><p style="text-align:justify"><em>With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments</em></p><p style="text-align:justify">Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have grown by about 240% in the past eight years. What has helped them? And what can India learn from them?</p><p style="text-align:justify"><em>Two nations and their success stories</em></p><p style="text-align:justify">An open trade policy, a less inexpensive workforce, and generous incentives to foreign firms contributed to Vietnam’s success. Vietnam pursues an open trade policy mainly through Free Trade Agreements (FTAs) which ensure that its important trading partners like the U.S., the EU, China, Japan, South Korea and India do not charge import duties on products made in Vietnam. Vietnam’s domestic market is open to the partners’ products. For example, 99% of EU products will soon enter Vietnam duty-free.</p><p style="text-align:justify">Vietnam has agreed to change its domestic laws to make the country attractive to investors. Foreign firms can compete for local businesses. For example, EU firms can open shops, enter the retail trade, and bid for both government and private sector tenders. They can take part in electricity, real estate, hospital, defence, and railways projects. This model may not be good for India as it offers no protection to farmers or local producers from imports. Vietnam being a single-party state can ignore domestic voices.</p><p style="text-align:justify">Over a decade or so, large brands such as Samsung, Canon, Foxconn, H&M, Nike, Adidas, and IKEA have flocked to Vietnam to manufacture their products. Last year, Vietnam received investments exceeding $16 billion. As a result, Vietnam’s exports rose from $83.5 billion in 2010 to $279 billion in 2019.</p><p style="text-align:justify">In Bangladesh, large export of apparels to the EU and the U.S. make the most of the country’s export story. The EU allows the import of apparel and other products from least developed countries (LDCs) like Bangladesh duty-free. Sadly, Bangladesh may not have this facility in four to seven years as its per capita income rises and it loses the LDC status. Bangladesh is working smartly to diversify its export basket. India, as a good neighbour, accepts all Bangladesh products duty-free (except alcohol and tobacco).</p><p style="text-align:justify">Please <a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" title="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true">click here</a> to read more.</p>
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<br><a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" class="re" target="_blank">The Hindu, 10 November, 2020, https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true</a><div class="clear"></div>
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LATEST NEWS UPDATES | Lessons from Vietnam and Bangladesh -Ajay Srivastava </title>
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
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With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
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<h1 class="cat-box-title">Lessons from Vietnam and Bangladesh -Ajay Srivastava</h1>
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Published on</span><span class="text-date"> Nov 10, 2020</span>
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<p style="text-align:justify">-The Hindu</p><p style="text-align:justify"><em>With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments</em></p><p style="text-align:justify">Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have grown by about 240% in the past eight years. What has helped them? And what can India learn from them?</p><p style="text-align:justify"><em>Two nations and their success stories</em></p><p style="text-align:justify">An open trade policy, a less inexpensive workforce, and generous incentives to foreign firms contributed to Vietnam’s success. Vietnam pursues an open trade policy mainly through Free Trade Agreements (FTAs) which ensure that its important trading partners like the U.S., the EU, China, Japan, South Korea and India do not charge import duties on products made in Vietnam. Vietnam’s domestic market is open to the partners’ products. For example, 99% of EU products will soon enter Vietnam duty-free.</p><p style="text-align:justify">Vietnam has agreed to change its domestic laws to make the country attractive to investors. Foreign firms can compete for local businesses. For example, EU firms can open shops, enter the retail trade, and bid for both government and private sector tenders. They can take part in electricity, real estate, hospital, defence, and railways projects. This model may not be good for India as it offers no protection to farmers or local producers from imports. Vietnam being a single-party state can ignore domestic voices.</p><p style="text-align:justify">Over a decade or so, large brands such as Samsung, Canon, Foxconn, H&M, Nike, Adidas, and IKEA have flocked to Vietnam to manufacture their products. Last year, Vietnam received investments exceeding $16 billion. As a result, Vietnam’s exports rose from $83.5 billion in 2010 to $279 billion in 2019.</p><p style="text-align:justify">In Bangladesh, large export of apparels to the EU and the U.S. make the most of the country’s export story. The EU allows the import of apparel and other products from least developed countries (LDCs) like Bangladesh duty-free. Sadly, Bangladesh may not have this facility in four to seven years as its per capita income rises and it loses the LDC status. Bangladesh is working smartly to diversify its export basket. India, as a good neighbour, accepts all Bangladesh products duty-free (except alcohol and tobacco).</p><p style="text-align:justify">Please <a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" title="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true">click here</a> to read more.</p>
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<br><a href="https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true" class="re" target="_blank">The Hindu, 10 November, 2020, https://www.thehindu.com/opinion/op-ed/lessons-from-vietnam-and-bangladesh/article33060511.ece?homepage=true</a><div class="clear"></div>
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LATEST NEWS UPDATES | Lessons from Vietnam and Bangladesh -Ajay Srivastava
Lessons from Vietnam and Bangladesh -Ajay Srivastava
Published on Nov 10, 2020
Modified on Nov 10, 2020
-The Hindu
With reforms promoting innovation and lowering the cost of doing business, India is poised to attract the best investments
Vietnam and Bangladesh are on a roll. While Bangladesh has become the second largest apparel exporter after China, Vietnam’s exports have grown by about 240% in the past eight years. What has helped them? And what can India learn from them?
Two nations and their success stories
An open trade policy, a less inexpensive workforce, and generous incentives to foreign firms contributed to Vietnam’s success. Vietnam pursues an open trade policy mainly through Free Trade Agreements (FTAs) which ensure that its important trading partners like the U.S., the EU, China, Japan, South Korea and India do not charge import duties on products made in Vietnam. Vietnam’s domestic market is open to the partners’ products. For example, 99% of EU products will soon enter Vietnam duty-free.
Vietnam has agreed to change its domestic laws to make the country attractive to investors. Foreign firms can compete for local businesses. For example, EU firms can open shops, enter the retail trade, and bid for both government and private sector tenders. They can take part in electricity, real estate, hospital, defence, and railways projects. This model may not be good for India as it offers no protection to farmers or local producers from imports. Vietnam being a single-party state can ignore domestic voices.
Over a decade or so, large brands such as Samsung, Canon, Foxconn, H&M, Nike, Adidas, and IKEA have flocked to Vietnam to manufacture their products. Last year, Vietnam received investments exceeding $16 billion. As a result, Vietnam’s exports rose from $83.5 billion in 2010 to $279 billion in 2019.
In Bangladesh, large export of apparels to the EU and the U.S. make the most of the country’s export story. The EU allows the import of apparel and other products from least developed countries (LDCs) like Bangladesh duty-free. Sadly, Bangladesh may not have this facility in four to seven years as its per capita income rises and it loses the LDC status. Bangladesh is working smartly to diversify its export basket. India, as a good neighbour, accepts all Bangladesh products duty-free (except alcohol and tobacco).
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