(VOVworld) – President of India’s Centre for Asian Strategic Studies Jayadeva Ranade told the Vietnam News Agency correspondent in New Delhi that economic cooperation with Vietnam is a strategic target. After conducting economic liberalization in 1986, Vietnam recorded an average GDP growth rate of 6.3% over the last 2 decades.

The renewal policy has helped Vietnam achieve the second fastest growth rate in Asia, after China. Ranade said the shifting from the centrally-run economy to the market economy has created more opportunities for foreign investors to invest in Vietnam. Vietnam has become an attractive investment destination thanks to its continuous growth. However, Ranade said Vietnam needs to improve its infrastructure, remove some tariff and non-tariff barriers, and improve the quality of its labor force through vocational training. India and ASEAN have signed a free trade agreement in services and one this agreement becomes effective, it will boost economic cooperation between India and Vietnam. Vietnam has been negotiating to join the Regional Comprehensive Economic Partnership with other ASEAN members and partners including India.