HCM City and India Strengthen Cooperation in Information Technology

Ho Chi Minh City (HCM City) and India are advancing their collaboration in the information technology (IT) sector, fostering high-tech innovation and economic development. Recognizing the country’s technological prowess, HCM City aims to attract investments from Indian IT corporations and startups to implement cutting-edge projects, particularly in artificial intelligence (AI), big data, and cloud computing.

Enhancing Bilateral IT Collaboration

At the “India-Vietnam Seminar on Potential Collaboration” held in HCM City on February 27, Vo Van Hoan, Deputy Chairman of the HCM City People’s Committee, emphasized the strategic importance of IT in the city’s development plan. He highlighted the city’s ambition to build a digital economy, e-government, smart city infrastructure, and improve public services through digital transformation.

With impressive growth in the digital economy, HCM City seeks to expand cooperation with India, leveraging its expertise in software solutions, IT services, and high-tech innovation. The city’s vision includes an increased digital economy contribution of 25% to its Gross Regional Domestic Product (GRDP) by 2025.

In addition to technological and project-based collaboration, HCM City prioritizes strengthening partnerships with Indian counterparts in various fields, including training, organizing seminars, and sharing expertise. The City actively promotes initiatives to enhance professional knowledge exchange, fostering deeper cooperation in multiple sectors. Furthermore, the City encourages the expanded use of digital platforms to facilitate online forums and virtual seminars covering culture, education, and economic cooperation. These efforts aim to create accessible and dynamic spaces for discussion, collaboration, and mutual learning, ultimately reinforcing bilateral relations and opening new opportunities for joint development and investment between HCM City and India.

Investment and Business Opportunities

HCM City presents an attractive investment environment, featuring special incentives for technology companies, especially those involved in research and development (R&D). The city is home to approximately one million IT engineers, providing a dynamic and skilled workforce for foreign investors. Key investment areas include digital infrastructure, e-commerce, and technology-driven solutions in education, healthcare, and transportation.

Vipra Pandey, the Indian Consul General in HCM City, acknowledged Vietnam’s growing IT market, which is supported by strong government policies and increasing digital adoption. With the Vietnamese government investing in digital transformation programs and emerging technologies like 5G, the country is positioning itself as Southeast Asia’s next IT hub.

Indian IT Firms and Market Potential

The country’s IT industry is expected to reach $350 billion in revenue by 2025, offering significant expertise in software development, digital payments, and cloud computing. Dr. Rajeev Singh, Director General of the Indian Chamber of Commerce (ICC), emphasized the growing economic ties between Vietnam and India, with bilateral trade reaching nearly $15 billion in 2024. The country’s investment in Vietnam stands at approximately $2 billion, covering sectors such as energy, manufacturing, and IT services.

HCM City’s IT and business associations signed cooperation agreements with the ICC to promote long-term strategic partnerships. The agreements focus on expanding digital transformation, technology exchanges, and business networking between Indian and Vietnamese firms.

A Shared Vision for the Digital Future

The two countries are committed to strengthening their digital cooperation with a focus on smart urban development and sustainable technology integration. The city aims to leverage India’s technological strengths to foster IT innovation and enhance digital services. The partnership is expected to boost IT industry growth, create high-quality jobs, and support Vietnam’s ambition of becoming a leading digital economy in the region.

Following the seminar, Indian business delegations are set to explore investment opportunities at Quang Trung Software Park and other high-tech zones in HCM City. The city remains open to welcoming Indian companies, fostering a robust IT ecosystem, and driving technological progress for mutual benefits.

Sources: Various sources

Read more about Vietnam’s FDI attraction in January 2025 here.