Ho Chi Minh City welcomes Indian businesses to invest in high-tech projects

Ho Chi Minh City welcomes Indian businesses to invest in high-tech projects

Ho Chi Minh City aims to establish extensive cooperative relationships with Indian businesses, from leading technology corporations to potential startups to jointly implement high-tech projects.

Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee, emphasised that Vietnam and India have much room for trade and investment cooperation, especially in the fields of information technology and digital economy.

"The city identifies information technology as not only a key economic sector but also a foundation for improving the quality of people's lives, improving administrative management efficiency and encouraging sustainable development," Hoan said at the India – Vietnam Seminar on Potential Collaboration, co-hosted by Ho Chi Minh City People's Committee and the Indian Chamber of Commerce (ICC) in Ho Chi Minh City on February 27. "The city is focusing on investing in digital infrastructure, encouraging digital transformation in all fields from education, healthcare, transportation to public services, aiming to build e-government, digital economy, digital society and smart cities."

Ho Chi Minh City has achieved impressive achievements in digital economy with the rate of digital technology enterprises reaching 12.88 per cent, equivalent to more than 33,000 enterprises, the rate of digital platform businesses reached 11.63 per cent, equivalent to more than 30,000 businesses.

Representatives of the Indian Chamber of Commerce (ICC) and Ho Chi Minh City Computer Association (HCA) signed an MOU at the seminar

Cao Thi Phi Van, deputy director of the Investment and Trade Promotion Centre, said that that Ho Chi Minh City was trying to realise the goal of increasing the proportion of the digital economy to 25 per cent of regional GDP by the end of 2025, through policies to support small and medium-sized enterprises in digital transformation, encouraging e-commerce and create favourable conditions for innovation.

“The potential for investment in industrial and high technology parks, especially in information and digital technology, in Ho Chi Minh City is huge. The city also has special preferential policies for IT businesses, especially in R&D," Van said.

The young, dynamic, creative and abundant workforce of about 1 million information technology engineers is a special competitive advantage of Ho Chi Minh City.

“More specifically, when investing in Ho Chi Minh City in particular and Vietnam in general, businesses not only have a local consumption market of over 100 million people but also connect directly with more than 60 countries and territories through 17 bilateral and multilateral free trade agreements,” Van added.

Dr. Rajeev Singh, director general of the ICC, emphasised that the Indian IT industry was on a rapid growth trajectory, expected to reach a revenue of $350 billion by the end of 2025.

Cooperation between India and the ASEAN region has made strong strides in many economic fields, including trade and investment, connectivity, energy, culture, people-to-people exchanges and maritime security.

According to Singh, the strong bilateral relationship between India and Vietnam has much potential to encourage more trade and investment cooperation.

“As comprehensive strategic partners, trade relations between Vietnam and India continue to flourish, with bilateral trade turnover reaching around $15 billion in 2024, despite fluctuations in the world economy, geopolitical conflicts and disruptions in the global supply chain. As recorded, India's investments in Vietnam are also estimated $2 billion, including investments routed through third countries,” Singh said.

The ICT market in Vietnam, according to Singh, is showing significant potential, driven by a combination of government initiatives, a young and tech-savvy population, and increasing digital adoption across various sectors.

“Initiatives like the National Digital Transformation Programme and active investments in digital infrastructure, including 5G, are pushing for widespread digital integration and Vietnam’s ambition to become the IT hub of Southeast Asia,” he added.

At present, a few key trends are observed such as the expansion of software development and IT services, growth of e-commerce and digital payment platforms, and increased adoption of cloud computing and AI, providing opportunities for Indian ICT firms to invest and do business in Vietnam.

“The success stories of HCL Technology, Dikshatek, Jetking, and others are very encouraging. With Vietnam's commitment to smart urban development, digital transformation and environmental sustainability, the two countries have the opportunity to encourage strategic partnerships and extensive cooperation. This is also an opportunity for Indian businesses to cooperate with Vietnamese partners to expand their presence in Vietnam as well as seek new investment opportunities,” he said.

VIR