MoU between India and Vietnam on Cooperation in IT

•  The Union Cabinet has approved Memorandum of Understanding (MoU) between India and Vietnam on Cooperation in the field of Information Technology.
• The MoU aims to develop sustainable and a long-term cooperation between both countries on the basis of equality and mutual interest in the areas of IT.
• The MoU will be implemented by establishing a Joint Working Group on IT having representatives from both the countries.
• It will remain in force for a period of 5 years and will be renewable by mutual written consent between India and Vietnam.
• Its implementation will result in institutional and capacity-building in the field of IT and Human Resource Development, mutually benefiting IT sector of both countries.

Analysis:

• India-Vietnam relations have been exceptionally friendly and cordial since their foundations were laid by Prime Minister Nehru and President Ho Chi Minh more than 50 years ago.
• The traditionally close and cordial relations have their historical roots in the common struggle for liberation from foreign rule and the national struggle for independence.
• India's thrust under the 'Act East' policy combined with Vietnam's growing engagement within the region and with India has paid rich dividends. Vietnam is an important regional partner in South East Asia.
• India and Vietnam closely cooperate in various regional forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO. Vietnam is also an important pillar amongst India’s CLMV partners.
• India's relations with Vietnam are marked by growing economic and commercial engagement. India is among the top ten trading partners of Vietnam. Vietnam is ranked as the 28th trading partner of India.
• Bilateral trade between India and Vietnam has seen continuous growth over the past few years. According to Vietnam's official data, total trade volume touched US$ 5.23 billion in 2013, an increase of 32.8 % over the last year. In 2014 the total trade turnover was USD 5.60 billion (India’s export $3.1 bln, import $2.5 bln).
• Vietnam continues to be an attractive investment destination for Indian companies. India is ranked as the 27th largest investor in India with 111 projects and with the registered capital of $530 million.

By: Vishal