Tata Group is holding negotiations with the government of Vietnam to set up a steel factory there with an investment of $ 5 billion, an embassy official said.
Tata Group signed a MoU in 2007 with the government of Hatinh Province in Vietnam to set up a steel factory and currently negotiations are going on between the two, Vietnam Ambassador to India Nguyen Thanh Tan said.
He observed that if the negotiations conclude, "it will be the biggest Indian project in Vietnam". Currently, there are about 160 Indian companies in Vietnam. Besides, he said, as part of strengthening relations between the two countries, a direct flight between India and Vietnam is likely to be introduced by this year.
The MoU between Jet Airways and Vietnam Airlines has been signed and a direct flight connectivity will happen this year, he added. "We are yet to decide on cities. It may be between New Delhi and HaNoi or New Delhi and Ho Chin Min city," he said.
Earlier, addressing members of India-ASEAN Sri Lanka Chamber of Commerce and Industry, Tan, on his first visit to Chennai, said currently two-way trade was at $3.9 billion and target of reaching $7 billion by 2015 looks "feasible".
In 2010, two-way trade relations was at $2.7 billion and within one year it increased by more than $ 1 billion, he pointed out.
India is one of the largest exporters to Vietnam which ships auto-components, rubber, pharmaceuticals, among others, while it imports tea, coffee, mobile phone equipment, meat, tobacco products from Vietnam, he said.