Indian companies find opportunities in Vietnam's engineering sector
Indian companies find opportunities in Vietnam's engineering sector
Around 17 Indian companies have joined the business matching event with 70 Vietnamese companies to find partnership opportunities in the engineering sector.
The Consulate General of India in Ho Chi Minh City, in coordination with the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), has co-organised a B2B meeting titled India-Vietnam Cooperation in Engineering Sector on September 29.
The event has created a platform for the Indian and Vietnamese sides to explore possibilities of investment and business cooperation in engineering areas, including agricultural machinery, auto components, electrical and electronic equipment, food processing machinery, and others.
Madan Mohan Sethi, consul general of India in Ho Chi Minh City, stated that the year 2022 will be a significant year in the bilateral relationship between India and Vietnam, as both countries will be reaching the milestone of 50 years of diplomatic relations.
He further added that India is one of Vietnam's three comprehensive strategic partners. He shared that almost 400 companies from India have visited Ho Chi Minh City in the last one month, and now there is an opportunity for Vietnamese companies to explore partnerships and business with the 17 engineering companies that manufacture products for different industries like automotive, plastics, food processing, leather, and agriculture.
Vietnam offers vast potential for Indian engineering suppliers as the country is looking to bolster its supporting industries.
Bui The Lu, deputy director of the Investment and Trade Promotion Department at ITPC further shared that India has always been a strategic trade partner of Vietnam, and the two sides still have a lot of potentials to exploit.
Both Vietnam and India are focusing on technical and manufacturing aspects and aim to engage deeply in the global value chain. The municipal leaders are committed to creating favourable conditions for foreign businesses, including Indian companies, to invest in the city in priority fields, such as smart cities, technical infrastructure development, digital economy development, high-tech industry, and agriculture.
Foreign suppliers have accounted for the major market share in Vietnam's engineering sector over the past decade.
Significant exporters of machinery to Vietnam are Asian markets like China, South Korea, Japan, and Taiwan. Other notable exporters have been ASEAN, the United States, Germany, and Italy. With incentive support as prescribed in the Law on Investment and Decree No.111/2015/ND-CP for supporting industrial products, there is a bright outlook for other foreign suppliers including those from India to increase market share in Vietnam's engineering sector.
Vietnam is the largest destination for India’s engineering exports among the ASEAN nations. India’s engineering exports to Vietnam have grown by around 45 per cent from $1.8 billion in the 2020-2021 period to $2.6 billion during 2021-2022
India's key export products to Vietnam include iron and steel, aluminium, auto components and parts, electric machinery and equipment, industrial machinery, and lead.
