HCMC – Vietnam’s trade office in India has pledged comprehensive support for domestic firms eyeing Karnataka, an Indian state emerging as a high-tech powerhouse with a US$331-billion economy.
This was heard during a forum on investment opportunities for Vietnamese businesses in Karnataka held yesterday, March 19, drawing interest from Vietnamese firms, including Vingroup, Vietnam Airlines, Vietravel, Intech Group and VitaDairy.
With attractive production-linked incentives and a robust innovation ecosystem, Karnataka, dubbed “India’s silicon valley,” is positioned as a potential destination for Vietnamese companies looking to expand their global footprint beyond traditional trade into direct manufacturing and high-tech sectors, according to Vietnam’s trade office in India.
During the forum, the representatives from Karnataka Udyog Mitra (KUM), the state’s investment promotion agency, provided a detailed roadmap for investors, focusing on the 2025-2030 incentive framework. Key highlights include support for infrastructure, human resource development, and specific output-based incentives.
Notably, Karnataka plans to dispatch its first-ever high-level delegation to Vietnam later this year to study business cooperation opportunities.
The Vietnam News Agency quoted Bui Trung Thuong, Vietnam’s Trade Counselor to India, as saying that bilateral trade between Vietnam and India hit a historic US$16.46 billion in 2025. This surge has catalyzed a significant shift, with Vietnamese enterprises now moving toward direct investment in Indian states like Tamil Nadu, Telangana and now Karnataka.
