India companies offer expertise to Vietnam
A 20-member delegation led by Ninad Karpe, CEO of IT training giant Aptech Ltd, is in Vietnam to participate in a business forum organized by the Indian consulate in the country, industry body Federation of Indian Chambers of Commerce and Industry (Ficci) and the Vietnam Chamber of Commerce and Industry. The delegation includes representatives from companies operating in infrastructure, IT, mining, banking, healthcare and education.
“India’s relations with Vietnam are marked by growing economic and commercial engagement, especially in recent years. The two-way trade grew more than ten times since 2000 to reach $2.75 billion in 2010 (Indian exports were $1.76 billion, while Vietnam’s exports were 991 million). It is expected to exceed $3 billion in 2011,” according to a Ficci study released earlier this week.
“India figures among the ten largest exporters to Vietnam and with the inking of the India-Asean FTA on trade in goods, bilateral trade with Vietnam is poised to grow faster. Vietnam has ratified the India-Asean FTA in goods that was implemented in June 2010,” the study said.
Vietnam is an important regional partner in South-East Asia for India and both closely cooperate in various regional forums such as Asean, East Asia Summit, Mekong Ganga Cooperation and Asia Europe Meeting (ASEM) besides the United Nations (UN) and World Trade Organization (WTO).
The Ficci study has pointed out: “The textile industry is one of the critical sectors in the Vietnamese economy, playing an important role in the country’s export market. The garment and textile industry this year should invest further in high-value competitively priced products to maintain its position in the world’s top five exporters, with a view to making it into the top three.
The industry has to focus on technological innovation, while sourcing the best raw material and improving the quality of its human resources, including its management. The sector has set an ambitious target of $12.7-$13 billion in export earnings this year, according to the Vietnam National Textile and Garment Group (Vinatex).”
Growth in telecommunications, mining, population, agricultural-industrial activities, residential and commercial constructions has stimulated an increased demand for power in Vietnam. The country’s industrial sector is growing at an average rate of over 15 %, leading to around a 15 % increase in the annual demand for power. 74 new power stations, of which 48 will be hydro-electric facilities, will be built by 2020.
Many large global IT companies like Intel, IBM and Samsung have already invested in the country, he pointed out. OVL, Essar Exploration and Production Ltd, Nagarjuna Ltd, Venkateswara Hatcheries, Philips Carbon and McLeod Russell are some of the major investors.
Tata Steel plans to invest more than $ 5 billion in a steel plant in Vietnam. In the field of IT training, NIIT, Aptech and Tata Infotech have so far opened more than 50 centres across the Vietnam.
