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The proposed platform is being developed around the Clearing Corporation of India’s market infrastructure and is expected to be placed before the Reserve Bank of India for regulatory approval. Market participants have been working with the clearing corporation on design features, including trade execution, clearing, margining and reporting, with a rollout being discussed for the current financial quarter if approvals and operational testing proceed on schedule.

Bond forwards allow investors to buy or sell government securities at a pre-agreed price for settlement at a future date. The instrument is designed to help banks, insurers, primary dealers, overseas investors and other large holders manage interest-rate risk without requiring an immediate exchange of securities. Its wider use has become more important as India’s sovereign debt market draws larger cross-border flows after entry into major global bond indices.

The initiative follows the Reserve Bank of India’s February 2025 framework permitting forward contracts in government securities. The rules allow residents and eligible non-residents to undertake bond-forward transactions, while scheduled commercial banks and standalone primary dealers are permitted to act as market-makers. At least one party to a transaction must be a market-maker or a central counterparty authorised by the central bank.

Market officials see the platform as a step towards shifting a largely bilateral market into a more standardised structure. The present system is dominated by negotiated trades, with pricing often shaped by dealer relationships and limited visibility beyond counterparties. A screen-based mechanism could help create firmer reference prices, reduce information gaps and support more consistent valuation of related interest-rate products.

The bond-forward market is estimated at about ₹4 trillion to ₹4.5 trillion, with foreign banks accounting for the bulk of activity. That concentration has helped establish liquidity in parts of the curve but has also limited wider participation by domestic lenders, insurers and other institutional investors. A platform backed by central clearing could lower operational uncertainty for new entrants and improve confidence in settlement arrangements.

Clearing will be central to the reform. A centrally cleared structure would place the clearing corporation between counterparties, reducing bilateral credit exposure and applying margining standards across participants. The Reserve Bank’s directions already require non-centrally cleared bond-forward transactions to comply with margin rules for over-the-counter derivatives, while market-makers must use robust methods to mark positions to market.

The move also fits a wider regulatory push to improve surveillance of over-the-counter derivatives. Reporting of forward contracts in government securities to CCIL’s trade repository began on May 2, 2025, giving regulators access to transaction data through the life of a contract. A separate framework will require unique transaction identifiers for eligible over-the-counter derivative trades from January 1, 2027, improving traceability across counterparties and systems.

Foreign investor access is another factor behind the timing. Electronic trading providers have been building links to India’s government securities market as global investors increase allocations. MarketAxess executed its first platform trade in India government bonds between BlackRock and Standard Chartered Bank in 2025, using an integration with CCIL’s NDS-Order Matching system. Overseas investors bought nearly ₹1 trillion of government bonds over 13 months after inclusion in JPMorgan’s emerging market debt index, while other index inclusions have kept the market on global fixed-income desks’ radar.

The proposed bond-forward platform will still face practical tests. Dealers will need clarity on eligible securities, collateral treatment, settlement failure procedures, reporting formats, position limits and margin models. Participants will also need to align front-office systems, treasury risk controls and back-office processes before meaningful volumes migrate from bilateral trades to a shared electronic venue.

For insurers and long-duration investors, the instrument could become a more precise hedging tool across rate cycles. For banks, it could deepen market-making opportunities while making price discovery more transparent. For regulators, the key benefit lies in cleaner data, stronger risk monitoring and a structure that may reduce opacity in a derivatives market linked directly to sovereign bond pricing.

The official ceremony underscores Southeast Asia’s growing role in the global semiconductor value chain through collaboration, innovation and ecosystem-wide partnerships

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 5 May 2026 – SEMICON Southeast Asia (SEMICON SEA) 2026 was officially launched today at the Malaysia International Trade and Exhibition Centre (MITEC), bringing together policymakers, manufacturers, suppliers, researchers, investors and emerging talent from across the global semiconductor ecosystem for three days of industry dialogue, technology showcases and business engagement.

The opening ceremony was officiated by YB Datuk Seri Johari Abdul Ghani, Minister of Investment, Trade and Industry (MITI), and attended by SEMI leadership, the Malaysian Investment Development Authority (MIDA) led by the Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, and senior executives from global semiconductor companies.

Held under the theme ‘Transform Tomorrow’ in strategic partnership with MITI and MIDA, SEMICON Southeast Asia 2026 is expected to welcome more than 20,000 innovators, policymakers and technology experts. The three-day event focuses on key industry priorities including manufacturing scale-up, advanced packaging, intelligent manufacturing and workforce development, as companies respond to demand driven by artificial intelligence, high-performance computing and advanced electronics.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, said Malaysia is approaching the next phase of semiconductor growth as an active builder rather than a beneficiary of global trends.

“The semiconductor industry is at an inflection point, and Malaysia intends to be at the centre of what comes next. Under the MADANI Economy Framework and the New Industrial Master Plan 2030, we are not simply maintaining our position in the global semiconductor supply chain, we are deliberately reshaping it. The NIMP 2030 sets a clear direction for the E&E sector to move beyond assembly and test into design, advanced packaging and innovation-driven manufacturing, and MIDA is here to make that transition real. The RM28.5 billion secured by the E&E sector in 2025 is proof that global confidence in Malaysia has not wavered. What we are now building is the ecosystem to match that confidence, through supply chain integration, local capability development and the kind of high-value partnerships that platforms like SEMICON Southeast Asia are uniquely placed to catalyse,” said Datuk Sikh Shamsul Ibrahim.

“SEMI’s role has always been to bring together the global semiconductor ecosystem, and that responsibility becomes even more important as the industry grows in scale and complexity. Today, innovation is no longer confined to a single segment. It requires closer alignment across design, manufacturing, materials and supply chains. SEMICON Southeast Asia provides a platform to bridge these different parts of the ecosystem, enabling stakeholders to engage in more meaningful collaboration and move from discussion to execution,” said Ajit Manocha, President and CEO of SEMI.

“As demand continues to be driven by artificial intelligence, high-performance computing and advanced electronics, the ability to coordinate across regions and capabilities will be critical. SEMICON Southeast Asia 2026 is not only about showcasing technology, but about strengthening the partnerships needed to support long-term industry growth and resilience.”

The event features key leadership programmes including the Executive Leadership Summit, MIDA Strategic Semiconductor Forum and Seminar, Sustainability and Energy Summit, TechZoomers Challenge and TalentCONNECT, reflecting SEMICON Southeast Asia’s role not only as an exhibition platform, but as a convening point for leadership, capability and execution across the region’s semiconductor ecosystem.

Marking over a decade of strategic collaboration, MIDA and SEMI today reinforce 12 years of a transformative partnership dedicated to elevating Malaysia’s standing in the global semiconductor value chain. This enduring alliance remains anchored on three core pillars designed to future-proof the nation’s industrial landscape:

• Ecosystem Integration: Harmonising domestic and international supply chains to ensure seamless operational synergy.
• Enterprise Capability: Empowering local businesses to scale their technical expertise and compete on a global stage.
• Talent Advancement: Cultivating a high-skilled workforce as the essential bedrock of Malaysia’s long-term economic resilience and competitive edge.

SEMICON Southeast Asia 2026 runs from 5–7 May 2026 at MITEC, Kuala Lumpur, with participation from companies and organisations across Asia, the United States and Europe.

The issuer is solely responsible for the content of this announcement.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA partners with investors at every stage of their journey, supporting sustainable growth and long-term value creation for Malaysia. For more information, please visit www.mida.gov.my and follow MIDA on X, Instagram, Facebook, LinkedIn, TikTok and YouTube.

About SEMI

SEMI® is the global industry association connecting over 4,000-member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.

The Google Cloud India AI Hub, being developed with AdaniConneX and Nxtra by Airtel, is designed as a gigawatt-scale private cloud and data centre network across three campuses near the port city. The investment is planned over 2026-2030 and marks Google’s biggest infrastructure commitment in the country, combining hyperscale computing, subsea cable connectivity and clean-energy-linked operations.

Andhra Pradesh Chief Minister N. Chandrababu Naidu laid the foundation stone for the project on April 28, 2026, alongside Union electronics and IT minister Ashwini Vaishnaw, state IT and HRD minister Nara Lokesh, Google global infrastructure vice-president Bikash Koley and senior representatives of Adani and Bharti Airtel. The project follows Google’s October 2025 announcement that Visakhapatnam would host its first gigawatt-scale AI hub in the country.

The development is expected to occupy about 600 acres across locations including Tarluvada, Rambilli and Adavivaram. State officials have projected the facility’s operational launch around September 2028, though large data centre campuses of this scale typically move through phased commissioning as power, cooling, network and security systems are completed.

Google’s plan goes beyond a conventional cloud facility. The hub is intended to support AI workloads for services such as enterprise cloud computing, consumer applications, advanced model deployment and data-intensive digital platforms. Its location on the east coast gives Visakhapatnam a strategic role in subsea connectivity, with plans for international cable landings that can improve bandwidth, reduce latency and strengthen links between India, Southeast Asia and global cloud regions.

AdaniConneX, the joint venture between Adani Enterprises and EdgeConneX, is expected to lead major elements of data centre construction and power-linked infrastructure. Nxtra by Airtel will support data centre development, fibre connectivity and cable landing infrastructure. Airtel’s existing telecom backbone and Adani’s energy and infrastructure capabilities give the project domestic execution partners at a time when AI infrastructure is becoming capital-intensive and geopolitically sensitive.

The project also fits into a wider policy push to reduce dependence on overseas compute capacity. Demand for AI infrastructure has expanded rapidly as startups, banks, telecom operators, public agencies and manufacturing groups test generative AI, automation and data analytics. Large language models and AI inference services require dependable access to graphics processing units, high-density power systems, liquid cooling, resilient connectivity and local data storage.

Visakhapatnam’s selection reflects Andhra Pradesh’s attempt to position itself as a technology and logistics corridor after years of competition from established hubs such as Bengaluru, Hyderabad, Chennai, Pune and the National Capital Region. The port city already has an industrial base, naval presence, road and rail connectivity and a coastline suited to cable infrastructure. The state government is banking on the Google project to attract hardware suppliers, energy providers, construction contractors, cloud specialists and AI startups.

Employment claims around the project have been ambitious, with state leaders citing the possibility of hundreds of thousands of direct and indirect jobs through construction, operations, supply chains and associated services. The more immediate employment impact is likely to come from civil works, electrical systems, fibre deployment, facility management, security and engineering support. Higher-skilled roles in cloud architecture, AI operations and chip-level systems may depend on how quickly local training pipelines are aligned with industry needs.

Power and water use will be closely watched. Gigawatt-scale data centres require enormous electricity supply and sophisticated cooling systems, making renewable energy procurement, grid stability and water stewardship critical. Google has said the project will be tied to a long-term clean energy strategy and community programmes covering water, skills, maritime trade modernisation and women-led businesses. Delivering on those commitments will be essential for public acceptance, especially as data centres worldwide face scrutiny over their environmental footprint.

The order, issued by the Ministry of Commerce on 2 May, marks China’s first known use of a formal blocking mechanism against US sanctions on domestic companies. It targets measures against Hengli Petrochemical Refinery Co, Shandong Shouguang Luqing Petrochemical Co, Shandong Jincheng Petrochemical Group Co, Hebei Xinhai Chemical Group Co and Shandong Shengxing Chemical Co. The firms had been placed under US restrictions linked to alleged purchases or processing of Iranian crude, including asset freezes and transaction bans.

The move places banks, insurers, commodity traders and shipping intermediaries in a difficult position. Compliance with Washington’s restrictions may now expose them to legal risk in China, while compliance with Beijing’s order may expose them to penalties under the US sanctions regime. For large Chinese banks with international operations, the dilemma is particularly acute because access to dollar clearing, correspondent banking and global capital markets remains central to their business.

China has long rejected unilateral US sanctions as illegitimate, especially when they apply beyond American territory. Until now, however, Beijing had often allowed major financial institutions and state-linked enterprises to quietly reduce exposure to sanctioned entities to avoid jeopardising access to the US financial system. The latest order changes that balance by instructing domestic parties not to recognise, enforce or comply with the penalties.

The legal basis lies in China’s blocking rules against what Beijing describes as unjustified extraterritorial application of foreign laws. Those rules, introduced in 2021 and strengthened by additional countermeasure regulations, allow authorities to prohibit compliance with foreign restrictions that impair normal business with third countries. The 2 May order says the US measures against the refiners improperly restrict lawful trade and harm the rights of Chinese entities.

The immediate trigger is Washington’s renewed pressure on Iranian oil revenues. Hengli’s Dalian refinery, with capacity of about 400,000 barrels per day, is among the most prominent privately owned refining assets to be targeted. US authorities have accused it of buying large volumes of Iranian crude. Hengli’s parent has denied trading with Iran and said operations remain normal.

Other sanctioned firms are part of China’s independent refining sector, often described as “teapot” refiners, clustered mainly in Shandong and surrounding provinces. These companies have become central to China’s discounted crude imports, including oil from Iran and Russia, as state refiners have generally been more cautious in handling cargoes exposed to sanctions risk.

The financial implications extend beyond the refiners themselves. Banks processing payments, lenders providing working capital, insurers covering cargoes, shipowners transporting crude and brokers arranging trades could all face competing legal obligations. International banks are likely to adopt a more conservative stance, while smaller domestic institutions may come under pressure to maintain services to companies protected by Beijing’s order.

Hengli has already moved to limit operational disruption. Its Singapore trading unit was restructured after the US designation, with a majority stake transferred to a company linked to a local government entity in Dalian. The shift has not fully reassured counterparties, as brokers and financial institutions remain wary of dealing with entities connected to sanctioned operations.

The confrontation comes as energy markets are adjusting to tighter enforcement against Iranian crude flows. China remains Iran’s largest oil customer, with independent refiners attracted by discounted barrels at a time when domestic margins are under pressure. Traders have reported that cargoes are often routed through complex shipping arrangements, with documentation obscuring origin and payments settled through non-dollar channels.

For Beijing, the order is also a political signal. It asserts that China will not automatically absorb the costs of US secondary sanctions when strategic commodities, energy security and private industrial champions are involved. It also offers reassurance to domestic firms that the government is prepared to use legal instruments rather than limit itself to diplomatic protest.

For Washington, the step complicates enforcement. Sanctions work most effectively when banks and intermediaries avoid designated firms without needing direct prosecution. If China compels non-compliance at home, US authorities may have to decide whether to escalate against financial institutions that continue servicing the refiners, a move that could widen the dispute from energy trade into the banking system.

The Union Minister for Electronics and Information Technology, Railways and Information and Broadcasting made the remarks at the ground-breaking ceremony of the Google Cloud India AI Hub in Visakhapatnam, a project carrying an estimated investment of $15 billion. The facility, planned with Adani ConneX and Airtel Nxtra, will include a 1GW hyperscale AI data centre, with about 600 acres allocated across Turluvada, Rambilli and Adavivaram in Andhra Pradesh.

Vaishnaw’s comments reflect a broader policy effort to shift India’s role from assembly-led electronics manufacturing to deeper participation in global technology supply chains. The government is seeking to build domestic capability across finished devices, modules, sub-modules, components, raw materials, tools and manufacturing machinery, a progression seen as essential for reducing import dependence and gaining a larger share of global production.

Mobile phones remain the strongest evidence of that transition. Electronics production has risen from about ₹1.9 lakh crore in 2014-15 to about ₹11.3 lakh crore in 2024-25, while electronics exports climbed from about ₹38,000 crore to about ₹3.3 lakh crore over the same period. Mobile phone production expanded from about ₹18,000 crore to roughly ₹5.5 lakh crore, and mobile phone exports rose from about ₹1,500 crore to nearly ₹2 lakh crore, making the category one of the country’s most visible export successes.

Smartphones have become a leading export product, with Apple, Samsung, Tata Electronics, Foxconn, Dixon Technologies and other manufacturers playing prominent roles in the production ecosystem. The shift has been supported by the Production Linked Incentive scheme for large-scale electronics manufacturing, which helped attract global brands and contract manufacturers to expand capacity. The sector’s next phase, however, will depend less on assembly incentives and more on the availability of components, precision engineering, skilled labour, predictable taxation and faster logistics.

The Google Cloud project adds a digital infrastructure dimension to this manufacturing agenda. Vaishnaw urged global technology companies, including Google, to consider manufacturing servers, GPUs and chips in the country, arguing that the domestic data centre boom could create demand for high-value electronics and advanced computing hardware. Visakhapatnam is being positioned as an artificial intelligence hub, with subsea cable links expected to improve global connectivity through routes connecting Australia, the Middle East, Europe, Africa and the United States.

Semiconductors are the most strategic part of the plan. The India Semiconductor Mission has already helped draw investment into assembly, testing, marking and packaging facilities, chip design centres and fabrication proposals. Approved projects across several states include packaging units, display driver chip capacity and compound semiconductor facilities. The sector remains capital-intensive and technologically demanding, and India is entering a field dominated by Taiwan, South Korea, the United States, Japan, the Netherlands and China. Timelines, execution quality and ecosystem depth will determine whether the country can move beyond packaging and design services into higher-value production.

The government’s target of building a $500 billion domestic electronics ecosystem by 2030-31 is ambitious. It requires not only export-led growth but also a domestic supplier base for printed circuit boards, camera modules, batteries, displays, sensors, connectors, power electronics and semiconductor materials. Without local component depth, headline export gains can mask high import content, limiting value addition and leaving manufacturers exposed to currency swings and global supply disruptions.

Industry executives have generally welcomed the policy focus but continue to point to operational challenges. High logistics costs, customs procedures, dependence on imported inputs, limited component clusters, power quality, land acquisition delays and uneven state-level implementation remain constraints. Global companies also compare India with Vietnam, Mexico, Malaysia and Thailand when allocating production, making policy certainty and execution speed critical.

Labour availability is one of India’s advantages. Electronics manufacturing has generated large-scale employment, including substantial hiring of young women in assembly lines and component facilities. This has helped states such as Tamil Nadu, Karnataka, Uttar Pradesh, Andhra Pradesh and Gujarat compete for investment. Yet sustained growth will require improvements in industrial training, factory housing, transport, safety standards and career progression, particularly as production moves from assembly to precision manufacturing.

Geopolitics has created an opening. Companies are diversifying supply chains because of trade tensions, tariff risks, pandemic-era disruptions and concerns over concentration in China. India’s democratic institutions, large market, engineering talent and improving infrastructure make it a credible candidate for “China plus one” strategies. The challenge is to convert interest into anchored manufacturing networks that include suppliers, tooling companies, testing labs, logistics providers and research partnerships.

• Building upon its expertise in Europe, Rhenus is expanding its road freight solutions in Asia Pacific
• The strategic move will see dedicated expertise and resources to better support the region’s demand for fast and reliable freight transportation options
  

SINGAPORE – Media OutReach Newswire – 4 May 2026 – With demand for road freight services across Asia Pacific rising, leading global logistics provider Rhenus Group has announced plans to further expand its road freight operations in the region. As part of its broader regional growth strategy, the company is strengthening cross-border trucking across Southeast Asia and key corridors between Greater China and Southeast Asia. Building on this, it is continuously integrating road with air and ocean freight, while scaling local distribution, sourcing and leveraging existing free trade zone warehousing capabilities.

As part of this expansion, Rhenus is investing in local capabilities to support individual market needs including the recent establishment of its Bukit Kayu Hitam Border Office in Malaysia, with full customs capabilities to support smoother cross-border movements.

Prem Anand Anandaverl, Regional Director of Cross Border Trucking Asia, Rhenus Logistics notes, “Our goal is to provide a seamless connectivity to the global network by reinforcing a comprehensive road freight service and continue to help businesses to move their goods across Asia efficiently and compliantly. Road Freight is playing an increasingly important role in building a resilient supply chain especially in this region.”

Asia Pacific to see high demand for road freight services

The global freight trucking market size ^[1] is projected to be valued at US$2.74 Tn in 2025 and is set to reach US$3.70 Tn by 2032, growing at a CAGR (Compound Annual Growth Rate) of 3.9%. Asia Pacific remains a key growth driver, supported by expanding industrial output, a large consumer base, and rapidly developing logistics infrastructure enabling both domestic and cross-border trade.

Achieving Sustainable Growth through Road Freight: Consistency, Scalability and Increasing Customer Value

With more than 150 owned and partner road freight locations in Europe, Rhenus currently operates in over 15 countries through a well-established network. The expansion of road freight services in Asia Pacific will enable the company to further integrate its’ end-to-end supply chain solutions, combining road freight solutions with air and ocean services to deliver more flexible and customized logistics solutions globally.

Ongoing investments in multilingual local teams, dedicated border infrastructure, and best practice transport management systems will support seamless cross-border operations, stronger customs and regulatory expertise across markets.

Leveraging its rail connections between Greater China and Europe, alongside a robust multimodal network spanning sea, land, and rail, the company aims to provide customers with greater flexibility and scalability in response to evolving supply chain demands. The company is also working with partners to improve CO₂ tracking and explore alternative fuel options, supporting more sustainable road freight operations.

Hashtag: #Rhenus

The issuer is solely responsible for the content of this announcement.

About Rhenus

The Rhenus Group is one of the leading logistics specialists with global business operations and annual turnover amounting to EUR 8.2 billion. 39,000 employees work at 1,300 business sites in more than 70 countries and develop innovative solutions along the complete supply chain. Whether providing transport, warehousing, customs clearance or value-added services, the family-owned business pools its operations in various business units where the needs of customers are the major focus at all times.

Asian equities advanced sharply on Monday as artificial intelligence-linked chipmakers in South Korea and Taiwan drove regional benchmarks back towards record territory, erasing the losses triggered by the Iran war and restoring investor appetite for technology-heavy markets.

The MSCI Asia Pacific Index rose as much as 2.3 per cent on May 4, its strongest intraday gain since April 8, while the MSCI Asia Pacific excluding Japan Index climbed as much as 2.9 per cent. Benchmarks in South Korea and Taiwan, both heavily exposed to the semiconductor supply chain, gained more than 4 per cent each as investors moved back into companies seen as central to the global AI build-out.

The rally was led by the region’s dominant AI hardware suppliers, including Taiwan Semiconductor Manufacturing Co, Samsung Electronics and SK Hynix. These companies sit at crucial points of the AI infrastructure chain, from advanced foundry production to high-bandwidth memory chips used in data centres and graphics processors. Strong earnings from US technology groups have reinforced expectations that capital spending on AI servers, accelerators and cloud infrastructure will remain elevated through 2026.

TSMC has become the clearest symbol of that shift. The world’s largest contract chipmaker posted a 58 per cent jump in first-quarter net profit to a record level, supported by demand for AI processors, and guided second-quarter revenue to $39 billion to $40.2 billion. Its first-quarter revenue rose 35 per cent from a year earlier to about $35.7 billion, underlining the scale of orders tied to advanced computing.

Samsung’s semiconductor division also delivered a major earnings rebound, reporting 53.7 trillion won in operating profit for the first quarter on 81.7 trillion won in revenue. The group said memory sales were lifted by AI-related demand and tight supply, even as its mobile and display businesses faced margin pressure from higher component costs.

SK Hynix has benefited from its strong position in high-bandwidth memory, a category that has become central to AI accelerator performance. Demand from data centre operators and chip designers has pushed memory makers into long-term supply arrangements, with shortages expected to extend into 2027 as customers reserve capacity years ahead.

Taiwan’s broader market has also gained from the AI trade. The island’s economy expanded 13.69 per cent in the first quarter, its fastest annual pace in nearly four decades, supported by a surge in exports tied to AI hardware. Taiwan has overtaken Canada to become the world’s sixth-largest stock market by value, helped by TSMC’s rise and investor demand for companies embedded in advanced chip manufacturing.

Investor confidence has been strengthened by Nvidia’s expanding Asian supply chain. Its partners now span foundries, memory suppliers, electronics assemblers and companies linked to robotics and so-called physical AI. The shift has widened the rally beyond a handful of chip names, lifting component makers and specialist suppliers that provide substrates, packaging, power management and memory-related technologies.

The rebound also reflects a broader reassessment of geopolitical risk. The Iran war initially prompted investors to cut exposure to export-oriented and energy-importing markets, particularly those vulnerable to shipping disruptions and higher fuel costs. Yet the scale of AI-related earnings growth has helped offset those concerns, with funds favouring economies that are directly tied to semiconductor demand and less dependent on domestic consumption.

South Korea’s Kospi has been one of the year’s standout performers, supported by Samsung, SK Hynix and other technology exporters. Taiwan’s Taiex has also outperformed as investors price in continued demand for advanced nodes, AI servers and high-performance computing. The concentration of gains, however, has increased concerns that regional indices are becoming more dependent on a narrow set of semiconductor companies.

Valuations remain a key risk. Share prices in several AI-linked companies have risen faster than earnings forecasts, leaving markets exposed to any slowdown in capital expenditure by US cloud providers or delays in chip production. Memory supply shortages may support pricing in the near term, but they could also raise costs for downstream electronics makers and intensify competition among suppliers expanding capacity.

Currency movements have added another layer to the market response. A weaker won has supported earnings translation for South Korean exporters, while Taiwan’s market has drawn stronger foreign inflows on expectations that AI-linked exports will keep growth elevated. Japan’s yen strengthened during Monday’s regional trading, reflecting a mix of safe-haven demand and shifting expectations around monetary policy.

In 2024, the two sides adopted an Action Plan to implement the Comprehensive Strategic Partnership for the 2024-2028 period. This document not only consolidates traditional areas of cooperation but also expands into new domains such as science and technology, innovation, digital transformation, energy and sustainable development.

Economy continues to be a bright spot in bilateral cooperation

Over the past decade, Vietnam-India economic cooperation has recorded significant positive developments. Bilateral trade turnover has maintained steady growth, increasing from over USD 14 billion in 2023 to nearly USD 16.5 billion in 2025, reflecting the increasingly close integration between the two dynamic Asian economies.

The structure of two-way trade has increasingly demonstrated complementarity. Vietnam has strengthened its exports of electronics, machinery, processed agricultural products, wood, and seafood, while India serves as an important supplier of steel, pharmaceuticals, chemicals, and textiles to Vietnam.

Amid the ongoing restructuring of global supply chains, both Vietnam and India are intensifying efforts to diversify their partners and reduce dependency risks. This creates significant room for the two countries to promote supply chain linkages in areas such as processing and manufacturing industries, supporting industries, logistics, and high-tech agriculture. Vietnam, with its strategic location in Southeast Asia, can serve as a gateway for Indian enterprises to expand their presence deeper into ASEAN, while India represents a vast market with rapidly increasing consumer demand.

Science and technology: a new driver for deeper cooperation

Scientific and technological cooperation has seen remarkable development recently, gradually shifting from exchanges to more substantive collaboration, tied to specific products and developmental needs. Priority areas of cooperation include information technology, biotechnology, clean energy, and digital transformation.

Several representative projects, such as the Satellite Data Receiving Station and Satellite Image Processing Center, the Vietnam-India Nuclear Science Center (Da Lat), the Army Software Park (Nha Trang), and the Center of Excellence in Software Development and Training (CESDT), have been contributing to enhancing Vietnam’s technological capacity. Notably, the Indian Technical and Economic Cooperation (ITEC) program continues to be an effective channel for human resource training, helping Vietnamese officials and experts access modern management knowledge and experience.

Against the backdrop of the vigorous Fourth Industrial Revolution, the potential for cooperation between the two countries remains vast. The two sides can expand their cooperation into emerging areas such as Artificial Intelligence, semiconductors, cybersecurity, fintech, and biotechnology, aiming for the goals of co-development and co-innovation. ­

Environmental cooperation and sustainable development are gradually expanding

In the context of increasingly complex climate change, environmental cooperation between Vietnam and India is becoming an important component of the bilateral agenda. Areas such as renewable energy, water resource management, circular economy, and disaster-resilient infrastructure are receiving growing attention and promotion from both sides.

Cooperation agreements in marine science, along with Quick Impact Projects (QIPs) supporting communities, such as clean water supply, drought mitigation, and saline intrusion prevention in the Mekong Delta, have delivered practical results. Vietnam’s participation in the Coalition for Disaster Resilient Infrastructure (CDRI), initiated by India, also opens up opportunities to strengthen cooperation in sustainable infrastructure and climate change adaptation.

In the coming period, areas encompassing solar energy, energy storage, waste management, marine pollution monitoring, and early warning systems for natural disasters are considered promising directions for cooperation.

Prospects for cooperation

The prospects for cooperation in the coming period are assessed as positive. With the economic and scientific-technological complementarity, along with strong political will from both sides, Vietnam-India relations have many favorable conditions to grow more strongly, particularly in areas such as the digital economy, green economy, innovation.

Orientations for promoting cooperation in the coming period

With a foundation of excellent relations and significant room for cooperation, the two countries have the basis to elevate the Comprehensive Strategic Partnership to a new height, making it increasingly substantive and effective in the new phase, particularly in the context of the two countries heading towards new high-level engagements with the state visit of General Secretary and President To Lam to India in May 2026.

To effectively capitalize on opportunities, both sides need to continue maintaining high-level exchanges, intergovernmental mechanisms and specialized dialogues, and further translate strategic commitments into cooperation programs and projects with clear roadmaps and resources.

In the economic field, efforts should be intensified to remove trade barriers, improve logistics connectivity, and promote the review and upgrading of the ASEAN – India Trade in Goods Agreement (AITIGA); strengthen the development of large-scale investment projects in priority areas such as pharmaceuticals, the marine economy, renewable energy, and supporting industries.

In the field of science and technology, establishing joint research cooperation mechanisms, strengthening linkages between research institutes, universities, enterprises, as well as promoting expert exchanges, technology transfer, and human resource training will play an important role.

In the environmental field, efforts should be directed toward building a comprehensive green cooperation framework, focusing on water management, marine science, plastic pollution reduction, clean energy, and disaster-resilient infrastructure, while also effectively leveraging regional initiatives such as the CDRI.

Hashtag: #MAE

The issuer is solely responsible for the content of this announcement.