10:35 | 15/02/2016 Economy
Seven companies of the Tata Group would focus on Myanmar and Vietnam as viable markets to expand its business, a Tata Sons spokesperson has told India's Economic Times and International Business Times.
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.
"The demographics and the economic development stage of these countries represent a market for several products and services from the Tata Group," 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 signed a free trade agreement (FTA) with the European Union on Dec. 2, 2015. The country is set to become global trade partner for the US and the EU as it has recently signed the Trans Pacific Partnership (TPP). These moves have made the nation become an important strategic partner for India./.