Plenty of opportunity for Vietnam – India business cooperation

Jul 18, 2024

Vietnamese and Indian businesses hold great potential for cooperation in various economic sectors, including electronics and vehicle manufacturing, and information technology, experts shared the view at a recent seminar held in Hanoi.

Le Hoang Tai, deputy director of the Vietnam Trade Promotion Agency, noted electronics has become Vietnam’s key manufacturing field as it currently accounts for up to 17.8% of the total industrial production value.

According to the official, electronics manufacturing plays an important role in the national economy as it mainly produces electronic products, computers, and optical products for export to various countries worldwide, not to mention its deep engagement in the global supply chain.

Meanwhile, manufacturing vehicles and transportation components is also the country’s crucial sector. Accordingly, the Vietnamese market has witnessed the emergence of several major automobile manufacturers in globally, such as Honda and Toyota, leading to satellite manufacturers and foreign suppliers to inject capital into the nation.

Tai emphasised despite the complex nature of the COVID-19 pandemic, information technology also represents a bright spot for Vietnam as it has made significant contributions to the country’s GDP growth.

Most notably, the country has been named on the world information technology map, ranking first in software services in Southeast Asia. Several global-renowned corporations have selected Vietnam as an investment destination, while some Vietnamese IT enterprises such as Viettel and FPT have reached out to the wider world.

Tai subsequently advised local businesses to further enhance their capacity as a means of meeting the stringent requirement set by importers and effectively participating within the global supply chain.

Through this event, firms from India, Vietnam, and other Greater Mekong Sub-region countries can exchange information and gain insights into each other's needs, so that they will strengthen co-operation and fully tap into signed new-generation free trade agreements (FTAs), stressed the Vietnamese official.

Addressing the seminar, Dr. Shyam Vasudev Rao, president of Shyam Vasudev Rao and president of Federation of Indian Chambers of Commerce and Industry (FICCI), emphasized the COVID-19 pandemic has set forth requirements for sustainable development, and small and medium sized enterprises (SMEs) are being supported by governments with incentive policies thanks to their contribution.

SMEs are required to reform their model to make greater profits and master the supply chain, said Rao.

He noted that it is time for SMEs of Vietnam, India, Cambodia, and Thailand to seek new methods to expand new markets in the coming time.

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