Vietnamese PM trade pact with India

New Delhi, July. 6 -- Vietnamese Prime Minister offered a free trade pact with India as businesses from two countries signed several investment deals.

``We will do whatever we can to promote a free trade agreement between India and Vietnam,'' Dung told a gathering of business executives in the Indian capital.

There was no immediate response from Indian officials to Dung's proposal, but New Delhi has previously said it wants to focus on an overarching trade pact with the 10-member Association of Southeast Asian Nations instead of entering negotiations for pacts with individual countries of the grouping.

Dung, who is in India on a three-day visit, was to meet with Prime Minister Manmohan Singh and other government leaders later Friday.

The two leaders are expected to discuss steps to advance economic development, considering that their two countries are among the world's fast-growing economies with large youth populations and low labor costs, officials said.

Dung asked Indian business executives to explore business opportunities in Vietnam, where the economy is growing close to 8 percent annually.

As he spoke, three business agreements were signed, including a US$200 million deal between India's Sun Group and Vietnam's Sovico Group to jointly explore mineral and oil resources in Russia, Laos, Cambodia and Myanmar.

Separately, the governments of the two countries are scheduled to sign agreements on cooperation in agriculture, fisheries and shipping later on Friday.

Two-way trade between India and Vietnam totaled US$1 billion (euro740 million) in 2006, almost 10 times from a decade ago. But Dung said the current level falls ``below our expectation and the potential that exists between the two countries.''

His talks with Singh are also expected to focus on how Vietnam _ which has in recent years emerged as a major investment destination for companies like Intel Corp. _ could benefit from India's expertise in information technology.

India's leading information technology training company NIIT Ltd. already runs centers in Vietnam. Another education group, Aptech Ltd., signed a deal Thursday with FPT Corp., Vietnam's top technology company, to open 20 new software and multimedia training centers there by next year.

Indian manufacturing has also been keen on investing in Vietnam.

Tata Steel Ltd. and Essar Steel, two of India's leading steel companies, have recently signed agreements to plants in Vietnam.

Dung Leaves on Friday. This is the first time in the decade that Vietnamese prime minister has come to India.