FICCI Defence Business Delegation Visits Vietnam
FICCI organized its second Defence Business Delegation to Vietnam for B2B interactions concurrent to the Defence Minister, Nirmala Sitharaman's visit to Vietnam. The event was held from 12 to 14 June 2018, in Hanoi, Vietnam. The delegation from India comprised indigenous public and private sector firms active in the aerospace and defence sector.
On the first day of the event, the Indian delegates interacted with Parvathaneni Harish, Ambassador of India to Vietnam, who briefed them on the economic situation in Vietnam and on potential areas for partnership. Later, the Indian Business Chamber in Vietnam (INCHAM) hosted an interaction and dinner.
On the second day, Vietnam Chamber of Commerce, invited FICCI for a meeting. VCCI is an MoU partner of FICCI. Following the interaction, Indian and Vietnamese delegates participated in a day-long conference comprising 12 Indian companies and over 70 Vietnamese officials from procurement wings of the Vietnamese military. During the session, the Indian Defence Minister and Vietnamese Deputy Defence Minister of National Defence, Senior Colonel General Be Xuan Trong addressed the audience. The Defence Minister urged Indian investors to look at India with an open mind, saying there is immense scope in the co-production of platform, spares, and repair and overhaul services, while the Deputy Defence Minister also invited Indian companies to do business in Vietnam not with the intent of supplying just to India and Vietnam but also to other countries.
Sitharaman also inaugurated Bharat Electronics Limited's (BEL) liaison office in Hanoi by handing over a symbolic key to MW Gowtama, CMD, BEL. Furthermore, Alpha Design Technologies Limited signed an important MoU with HiTACO, a state-owned company in Vietnam active in the defence and security sector. The session concluded with a B2B session where both sides discussed their areas of business and areas of cooperation they sought from their counterparts. On the final day, the Vietnamese
“Indian investors should look at India with an open mind, there is immense scope in the coproduction of platform, spares, and repair and overhaul services. Nirmala Sitharaman Defence Minister ”
Ministry of Defence had arranged site visits to Hong Ha Shipyard and a Viettel manufacturing site where the delegates were given a tour of the facilities.
Vietnam is one of the fastest growing defence spenders in the world. The Vietnamese Government allocated USD5 billion towards military expenditure in 2017, of which 32.7 per cent is earmarked for the procurement of defence equipment. The country's defence expenditure increased at a CAGR of 6.41 per cent over 2013-2017.
India and Vietnam have set a target of USD15 billion in bilateral trade by 2020, from USD7 billion at present. In 2017, India extended USD500 million as Line of Credit to Vietnam for facilitating deeper defence cooperation, and the two countries have elevated their ties to a comprehensive strategic partnership to respond to emerging regional challenges.
Nirmala Sitharaman, Defence Minister, India (3rd from left), attending the business meeting in Hanoi, Vietnam