India and its Neighborhood- Relations; Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests
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India and Vietnam share traditionally close and warm bilateral relations that are denominated as comprehensive strategic partnership. Discuss the economic, cultural and strategic relations between these countries.
Along with the recent visit of Vietnam prime minister, India and Vietnam signed nine agreements to deepen comprehensive strategic partnership and enhance cooperation in the fields of customs, agriculture, legal, radio and television broadcast, culture and tourism.
Development of Strategic Partnerships from Bilateral Relations
Historical Relations:
- Vietnam and India have had cultural and economic ties since second century.
- India played a major role in supporting Vietnam during its fight against foreign intervention and colonialism, especially during the Vietnam War.
Formal Diplomatic Relations:
- The establishment of formal diplomatic relations in 1992 signaled the start of close economic ties, which included collaboration in manufacturing, agriculture, and oil exploration.
Upgraded to Strategic Partnership:
- In July 2007, during the visit of Vietnamese Prime Minister Nguyen Tan Dung to India, the relationship was upgraded to a “Strategic Partnership.”
- In especially for the defense and security industries, this was a major step toward formalizing collaboration across sectors.
Comprehensive Strategic Partnership:
- The collaboration was elevated to a “Comprehensive Strategic Partnership” in September 2016 during the visit of Indian Prime Minister Narendra Modi to Vietnam.
- The emphasis of this upgrading was on shared commitment to regional security as well as improved defense, commerce, and cultural exchange cooperation.
Relations between India and Vietnam:
- Vietnam’s strategy has established the country as a reliable partner in the region, promoting stronger economic connections with nations such as India.
- Economic Development: Vietnam has witnessed notable economic expansion and advancement, which adopting an independent and multilateralist foreign policy.
- Economic Development: Vietnam has witnessed notable economic expansion and advancement, which adopting an independent and multilateralist foreign policy.
- The bilateral trade between India and Vietnam stood at about $14.82 billion, in value terms, during 2023-24.
- India’s top exports to Vietnam include buffalo meat, marine products, iron and steel, rice, aluminium products, auto components, cereals, cotton yarn and pharmaceutical products, according to commerce ministry data.
- Top imports from Vietnam include electronic components, telecom instruments, consumer electronics, iron & steel, computer hardware, copper products, electronic instruments, spices and rubber.
- Closer cooperation between both countries in semiconductor technology innovation among other areas. Bilateral trade could zoom to $20 billion from the current levels of about $15 billion, in the coming years.
- Mekong-Ganga Cooperation (MGC): Vietnam and India, as members of MGC, have been collaborating to strengthen connections and advance development cooperation between India and Southeast Asian countries.
- Strategic Investments: Vietnam has relentlessly pursued Indian investments in a number of industries, such as technology, pharmaceuticals, and renewable energy.
- Effective implementation of the Joint Vision Statement on India-Viet Nam Defence Partnership towards 2030 and strengthening of defence cooperation between the two countries in recent years covering dialogues, training and capacity building cooperation, exchange of best practices, exercises, defence policy and industry cooperation was commendable.
- The Vietnamese government has conveyed gratitude to India for its assistance during the COVID-19 epidemic, especially with regard to vaccine distribution, which has strengthened bilateral relations even further.
- Cultural ties: Buddhist links between the two countries represent civilizational connections dating back millennia. Numerous Buddhist scholars and pilgrims travel to India regularly, including Vietnamese Buddhist pagoda in Bodhgaya.
- Yoga is immensely popular across Viet Nam that is reflected in hundreds of yoga clubs or other facilities and numerous Indian yoga teachers offering their services in Vietnam.
- The Swami Vivekananda Indian Cultural Centre (SVCC) which was established in Hanoi in September 2016, promotes further understanding of India and fosters closer links between the people of the two countries.
- The Indian community in Vietnam numbers around 8500. Majority of them are based in and around Ho Chi Minh City (HCMC) with a couple of thousand living in and around Hanoi.
Leveraging foreign policy to forge bridges in strategic relationships:
- The Prime Ministers expressed their shared vision for the Indo-Pacific region, which is one that is free, open, and governed by rules.
- In the South China Sea, where both countries push for conformity to international law, the India argued that India favors growth rather than expansionism indicates a shared position opposing assertive territorial claims.
- The significance of adopting a collective approach in resolving regional issues, such as those in West Asia and Myanmar, was emphasized by the leaders.
- India’s importance as a stabilizing power in the Indo-Pacific is acknowledged by Vietnam, underscoring their commitment to multilateralism and regional stability.
Way Forward:
- Bolstering economic and commerce Links: By stepping up cooperation in important areas including technology, agriculture, and renewable energy, both countries should concentrate on reaching the $20 billion target for bilateral commerce.
- Strengthening Defense and Security Cooperation: India and Vietnam should intensify their defense and security cooperation to handle regional security issues, especially in light of the South China Sea.
- Need to focus on some of the sectors where Vietnam is looking for investments from India include transportation, health, and education.
- Vietnam’s centrality to global supply chains is reaffirmed by its participation in Asia’s two key multilateral trade initiatives – the Regional Comprehensive Economic Partnership (RCEP) and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) – as well as a string of bilateral agreements, from the European Union to the United Kingdom.
Both India and Vietnam desire return of peace and stability in Myanmar and supported an ASEAN-centric approach in ensuring peace in the conflict-torn country. The two sides redoubled the importance of ensuring peace, stability, security, safety and freedom of navigation over the East China Sea and the South China Sea and a peaceful settlement of disputes based on respecting international law, especially UNCLOS 1982.