Cha-Am Hua Hin (Thailand), Oct 25 : India has granted the ‘Market Economy’ status to Vietnam, which responded by entering into the Indo-ASEAN Free Trade Agreement, which was signed with other members of the ten-nation block in August.

Disclosing this here today, Minister of Commerce and Industry Anand Sharma said: "India has given a ''Market Economy'' status to Vietnam. That agreement has been signed. In this summit itself, Vietnam signed the India-ASEAN Free Trade Agreement (FTA)."

"India has had a very good economic and political relationship with East Asia for the past few years especially when India became a full dialogue partner with ASEAN and India was invited for the East Asia Summit. This is significant," added Sharma.

The ten-member ASEAN, a regional grouping of Southeast Asian nations, and India are now trying to fast-track negotiations on services and investment, after sealing a FTA on goods.

The FTA on goods with the 42-year-old ASEAN, which was finalised in August, will be implemented from January 1, 2010.

Leaders from the ASEAN, India, China, Japan, South Korea, New Zealand and Australia are attending the East Asia Summit being held on the sidelines of the 15th ASEAN Summit. (ANI)