India Vietnam Relations
Context:
Recently, General Secretary of the Communist Party of Vietnam, To Lam visited in India, has significantly upgraded their bilateral relations. During talks with Prime Minister Narendra Modi in New Delhi, both sides elevated their ties to an “enhanced Comprehensive Strategic Partnership” and signed 13 agreements spanning defence, digital payments, and critical minerals. The engagement reflects India’s growing focus on the Indo-Pacific under its Act East Policy and Vision MAHASAGAR.
Key Outcomes of the Visit:
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- The two countries agreed to deepen cooperation in defence, maritime security, trade, and emerging technologies, with special emphasis on critical minerals and rare earths. A key agreement was signed on cooperation in radioactive and rare earth minerals, signalling strategic intent to secure supply chains in sensitive sectors.
- India said that Vietnam is a major pillar of India’s Act East Policy, noting that the partnership is not directed against any third country but aims to promote peace, stability, and prosperity in the Indo-Pacific region. Bilateral trade currently stands at around USD 16 billion, with a target of USD 25 billion by 2030.
- The two countries agreed to deepen cooperation in defence, maritime security, trade, and emerging technologies, with special emphasis on critical minerals and rare earths. A key agreement was signed on cooperation in radioactive and rare earth minerals, signalling strategic intent to secure supply chains in sensitive sectors.
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Defence and Strategic Cooperation:
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- Defence has emerged as a central pillar of the relationship. Cooperation includes joint military exercises such as VINBAX and MILAN, naval collaboration, maritime security coordination, and defence industry partnerships. India has extended defence Lines of Credit to Vietnam, supporting capacity building and maritime capability enhancement. The partnership also includes regular military exchanges and joint research initiatives.
- A high-level meeting between India’s Defence Minister and Vietnam’s Deputy Prime Minister and Defence Minister further reinforced cooperation in maritime domain awareness, defence manufacturing, and security training.
- Defence has emerged as a central pillar of the relationship. Cooperation includes joint military exercises such as VINBAX and MILAN, naval collaboration, maritime security coordination, and defence industry partnerships. India has extended defence Lines of Credit to Vietnam, supporting capacity building and maritime capability enhancement. The partnership also includes regular military exchanges and joint research initiatives.
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Economic and Technological Engagement:
Beyond defence, both countries are expanding cooperation in digital infrastructure and financial systems, including an MoU between the Reserve Bank of India and the State Bank of Vietnam on payment systems and digital innovation. Vietnam continues to be an important economic partner within ASEAN, contributing to India’s regional trade diversification under the Act East framework.
Strategic Significance of the Visit:
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- Strengthening Indo-Pacific Cooperation: India and Vietnam support peace, stability, and freedom of navigation in the Indo-Pacific region. The visit strengthens regional and maritime cooperation.
- Balancing China’s Growing Influence: Amid China’s increasing activities in the South China Sea, India–Vietnam cooperation is seen as important for maintaining strategic balance.
- Critical Minerals and Supply Chain Security: Cooperation in rare earths and critical minerals will help India develop alternative and secure supply chains.
- Boost to India’s ‘Act East Policy’: Vietnam is an important partner for India in the ASEAN region. The visit supports India’s Act East Policy and Vision SAGAR.
- Strengthening Indo-Pacific Cooperation: India and Vietnam support peace, stability, and freedom of navigation in the Indo-Pacific region. The visit strengthens regional and maritime cooperation.
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Conclusion:
The India–Vietnam partnership represents a stable and expanding strategic convergence in the Indo-Pacific, combining defence cooperation, critical mineral security, and economic engagement. As a key pillar of India’s Act East Policy, Vietnam’s role is expected to grow in shaping regional stability and resilient supply chains in the evolving geopolitical landscape.
