Seven companies of the Tata Group would focus on Myanmar and Vietnam as viable markets to expand its business. Growing economies, expanding middle class and tax incentives have made these two countries as important destinations for firms looking to expand their global operations in the South East Asia region.
Tata companies such as Tata Power, Tata Projects, Tata Chemical, Titan and Tata Motors, among others, are on the lookout for opportunities in Vietnam and Myanmar. For the giant business group, Singapore is the related country for Asean markets, which includes a $2 trillion economy, The Economic Times reported on Feb. 9.
Asean countries include Indonesia, the Philippines, Singapore, Thailand, Brunei, Myanmar, Laos, Vietnam and Cambodia.
"The demographics and the economic development stage of these countries represent a market for several products and services from the Tata Group," a Tata Sons spokesperson told the publication.
India's oldest business conglomerate has an understanding each in Vietnam and Myanmar for power projects. It is now planning to strengthen its engagement with a strategic point of view.
"The region has recorded more than 5% GDP growth on average since the year 2000 and, when combined, Asean nations would represent the world's seventh-largest economy. The region, is therefore, regarded by many as the third pillar of economic growth within Asia, after China and India," Shashank Tripathi, partner and strategy leader at PwC was quoted as saying by the publication.
Vietnam reportedly signed a free trade agreement with the European Union on Dec. 2, 2015. The country, which is set to become global trade partner for the US, the EU and China in exports, makes it important strategic partner for India.
A joint statement by India and Myanmar on the first meeting of the India-Myanmar Joint consultative commission held in July 2015 stated that both sides of the concerned ministries would work towards expeditious signing of the MoU on capacity building between the RBI of India and the Central Bank of Myanmar. The MoU took note of the proposal the Indian government had put forward of granting license to an Indian Bank to open its branch in Myanmar.