New Delhi, February 17 2009: "Tourism is the most effective way to increase the still negligible trade between India's northeastern region and Vietnam.

Northeast India and Vietnam, Laos, and Cambodia are so near, yet so far," Jarnail Singh, Secretary of the Ministry of Development of Northeastern Region (DoNER) said at the three day ASEAN North East India Business and Trade Opportunities Summit in Ho Chi Minh City, Vietnam on February 14 .

The three-day summit, the first of its kind in Vietnam, opened on February 12 was organized by the Ministry of DoNER in association with the Indian Chamber of Commerce, Indian Diplomatic Mission in Ho Chi Minh City and Vietnam Chamber of Commerce and Industries bringing together Government and business delegates from South-east Asia and eight Northeastern Indian States.

ASEAN North East India Investment and Trade Opportunities Summit came as part of India's "Look East policy" to build closer ties with Vietnam and Southeast Asia.

Jarnail Singh said the conference focused on tourism as the key to increasing Indian-Vietnamese trade.

Thirteen tourism companies attending the conference showed interest in future cooperation.

Rajeev Singh, Secretary General of the Indian Chamber of Commerce, said a key challenge to tourism and trade is the northeastern region's lack of "proper road connectivity" to Myanmar and the rest of Southeast Asia.

"With good roads; transportation time and cost will be reduced by half and trade will go on," he said..

Dhananjay Kumar, Chairman of the Indian Business Chamber in Vietnam, said trade with ASEAN accounts for just 9 percent of India's overall trade, and with Vietnam, a mere 0.8 percent.

A lot of opportunities are thus to be seized, he added.

"The Northeast region of India has a lot of commonalities with development of the Mekong sub-region.

Given the proximity and land connectivity to Southeast Asia, the region can be a connecting link between India and ASEAN countries," said Dr.Govinda Rao, Director of the National Institute of Public Finance and Policy and member of the Economic Advisory Council to the Indian Prime Minister on February 13 .

He was speaking on the second day of the Summit, which took place in HCM City, Vietnam.

The eight states in the region, a reservoir of rich natural resources and a beautiful amalgamation of different peoples and cultures, are ripe investment destinations with a lot in common with the Greater Mekong Sub-region, according to Rao.

Rao said the region had low market development, very little manufacturing activity, and low per capita income at 62 per cent of the national average.

However, the region has huge potentials in hydro-power, oil and gas, coal, limestone and forestry industries, not to mention stunning natural beauty and cultural diversity that makes it a tourism paradise, he added.

The region is home to many different ethnic minorities, unique traditions and festivals.

Rao said the region needed at least US$30 billion to develop various industries including its agro-processing, handloom and handicraft, bamboo, cement, oil, hydropower, information technology and tourism.

Right now, tourism is the third largest foreign exchange earner for India.

Indian officials are hoping to highlight northeast India's temperate climate, majestic landscapes, pilgrimage sites, handicrafts, wildlife and high cultural diversity as ideal eco-tourism and adventure destinations.

"We can co-operate to create a package tour that includes Vietnam and the Northeast of India for U.S, European and Japanese visitors," suggested Conrad Sangma, Tourism Minister for the Government of Meghalaya, one of the eight states in the region.

K.C Nihoshe, Parliamentary Secretary for the Government of Nagaland, said: "Vietnamese Government and the business community should consider the Northeast of India as a true business opportunity.

We know that the two nations have many areas and advantages to co-operate, and we warmly welcome you to the region.

Local governments have pledged preferential policies for foreign investors" he said.

India's northeastern region shares almost 98 per cent of its borders with China, Bangladesh, Bhutan and Myanmar.

This makes the region a prospective hub for regional and international trade.

The region occupies 7.8 per cent of the country's land mass but only 3.73 per cent of its population.

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