Oh no the evil mercantilists are building relations and defence relations with Vietnam.ONGC Videsh Ltd to strike deal with Vietnam firm
Jayanth Jacob, Hindustan Times
New Delhi, September 18, 2011
Unmoved by Chinese objections, the ONGC Videsh Ltd (OVL) and Petro Vietnam — state-owned exploration and production companies of India and Vietnam-are likely to sign a Memorandum of Understanding (MoU) on strategic cooperation. Signing of the pact is expected to be one of the many
outcomes in terms of agreements when Vietnam President Truong Tan Sang visits India in the second week of October.
India will also announce more line of credit, above the existing Rs 300 crore and besides opening more information technology (IT) parks in Vietnam.
Many agreements in the areas of trade, economic, scientific and technological cooperation are also likely to be inked during Sang's visit.
External affairs minister SM Krishna held long discussions with Sang on the entire facet of the bilateral ties during his visit to Vietnam.
The MoU between OVL and Petro Vietnam in the nature of a "strategic cooperation" also means undertaking of more exploration projects, which can irk China with its position that it enjoys "undisputed territorial sovereignty over South China sea."
Hindustan Times had earlier reported about India asking China to back off from its protest over the OVL's plans to explore Vietnamese oil blocks.
Energy security has been placed as a top item in the bilateral agenda despite serious warnings from China.
“Energy security is among top priorities. OVL has been there in Vietnam for the past 10 years. Now it is planning to sign a MoU for strategic cooperation to take the ties with Petro Vietnam forward,” said an Indian official.
In fact, the OVL investment accounts for almost half of India's 400 million UIS $ investment in Vietnam.
The main reason for above isthe sea bed mining.
The scale of things to come.India companies offer expertise to Vietnam
Posted: Friday, Sep 16, 2011 at 0141 hrs IST
Tags: SM Krishna | Ninad Karpe | Ficci | Vietnam Chamber Of Commerce And Industry | ASEM | WTO
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New Delhi: Ahead of external affair minister SM Krishna’s visit to Vietnam, India Inc is already there to offer its expertise and technological capabilities for collaboration in several sectors like manufacturing, IT, financing and infrastructure.
A 20-member delegation led by Ninad Karpe, CEO of IT training giant Aptech Ltd, is in Vietnam to participate in a business forum organised by the Indian consulate in the country, industry body Federation of Indian Chambers of Commerce and Industry (Ficci) and the Vietnam Chamber of Commerce and Industry. The delegation includes representatives from companies operating in infrastructure, IT, mining, banking, healthcare and education.
“India’s relations with Vietnam are marked by growing economic and commercial engagement, especially in recent years. The two-way trade grew more than ten times since 2000 to reach $2.75 billion in 2010 (Indian exports were $1.76 billion, while Vietnam’s exports were 991 million). It is expected to exceed $3 billion in 2011,” according to a Ficci study released earlier this week.
“India figures among the ten largest exporters to Vietnam and with the inking of the India-Asean FTA on trade in goods, bilateral trade with Vietnam is poised to grow faster. Vietnam has ratified the India-Asean FTA in goods that was implemented in June 2010,” the study said.
Vietnam is an important regional partner in South-East Asia for India and both closely cooperate in various regional forums such as Asean, East Asia Summit, Mekong Ganga Cooperation and Asia Europe Meeting (ASEM) besides the United Nations (UN) and World Trade Organisation (WTO).
The Ficci study has pointed out: “The textile industry is one of the critical sectors in the Vietnamese economy, playing an important role in the country’s export market. The garment and textile industry this year should invest further in high-value competitively priced products to maintain its position in the world’s top five exporters, with a view to making it into the top three.
The industry has to focus on technological innovation, while sourcing the best raw material and improving the quality of its human resources, including its management. The sector has set an ambitious target of $12.7-$13 billion in export earnings this year, according to the Vietnam National Textile and Garment Group (Vinatex).”
Growth in telecommunications, mining, population, agricultural-industrial activities, residential and commercial constructions has stimulated an increased demand for power in Vietnam. The country’s industrial sector is growing at an average rate of over 15 %, leading to around a 15 % increase in the annual demand for power. 74 new power stations, of which 48 will be hydro-electric facilities, will be built by 2020.
Many large global IT companies like Intel, IBM and Samsung have already invested in the country, he pointed out. OVL, Essar Exploration and Production Ltd, Nagarjuna Ltd, Venkateswara Hatcheries, Philips Carbon and McLeod Russell are some of the major investors.
Tata Steel plans to invest more than $ 5 billion in a steel plant in Vietnam. In the field of IT training, NIIT, Aptech and Tata Infotech have so far opened more than 50 centres across the Vietnam.