Why in News?
India and Vietnam elevated their bilateral ties to an “Enhanced Comprehensive Strategic Partnership” during the visit of Vietnamese President To Lam to India in May 2026.
Both countries also set an ambitious target of achieving $25 billion bilateral trade by 2030, reflecting growing strategic convergence in the Indo-Pacific region.
Historical Background of India–Vietnam Relations
India and Vietnam established diplomatic relations in 1972, though their engagement dates back to anti-colonial struggles and civilisational linkages.
Key milestones include:
- Prime Minister Jawaharlal Nehru visited Vietnam in 1954, becoming the first foreign leader to visit Hanoi after liberation.
- India supported Vietnam’s sovereignty during the Vietnam War.
- India recognised unified Vietnam soon after reunification in 1975.
- Relations were upgraded to a Strategic Partnership in 2007.
- In 2016, ties were elevated to a Comprehensive Strategic Partnership.
Vietnam became India’s first Strategic Partner within the ASEAN region.
Economic and Trade Relations
India–Vietnam trade crossed USD 16 billion in 2025–26, recording over 10% annual growth.
Trade Composition
- India’s exports: ~USD 6.11 billion
- Vietnam’s exports: ~USD 10.35 billion
Key Areas of Cooperation
Pharmaceuticals
Indian generic medicines have a growing market in Vietnam.
Agriculture and Fisheries
- Indian grapes and pomegranates received market access.
- Vietnamese durians and pomelos gained entry into Indian markets.
Manufacturing and Electronics
Vietnam is emerging as a major hub for high-tech manufacturing and electronics.
Renewable Energy and EVs
Cooperation is expanding in:
- Clean energy transition
- Solar and wind energy
- Electric mobility
Digital Economy
Collaboration includes:
- Digital payments
- E-commerce
- MSME integration into global supply chains
Vietnam’s membership in ASEAN and participation in the Regional Comprehensive Economic Partnership (RCEP) makes it a gateway to Southeast Asian markets.
Defence and Security Cooperation
Defence cooperation is a major pillar of bilateral relations.
Both countries share concerns regarding:
- Maritime security
- Freedom of navigation
- Stability in the Indo-Pacific
- Developments in the South China Sea
Major Areas of Defence Cooperation
Defence Lines of Credit
India has extended defence Lines of Credit for:
- Patrol vessels
- Defence equipment
- Maritime capability enhancement
Joint Exercises and Training
Regular:
- Military exchanges
- Naval exercises
- Staff talks
- Capacity-building programmes
Maritime Security
India invited Vietnam to station a liaison officer at the Information Fusion Centre – Indian Ocean Region.
Defence Industrial Cooperation
Focus areas include:
- Co-production
- Joint research
- Defence technology collaboration
Coast Guard Cooperation
Enhanced coordination in:
- Maritime safety
- Search and rescue operations
Vietnam also joined the Indo-Pacific Oceans Initiative during the visit.
Cultural and Civilisational Linkages
India and Vietnam share strong civilisational ties rooted in:
- Buddhism
- Hindu cultural influences
- Maritime trade connections
The My Son Sanctuary, a UNESCO World Heritage Site, reflects ancient Indian cultural influence through the Cham civilisation.
The Indian community in Vietnam numbers around 8,000 people, mainly engaged in:
- Business
- IT
- Professional services
India has also implemented 66 Quick Impact Projects across Vietnamese provinces focusing on:
- Education
- Healthcare
- Community infrastructure
Key Outcomes of President To Lam’s Visit
Enhanced Comprehensive Strategic Partnership
The relationship was elevated to the highest diplomatic category India extends to partner nations.
Prime Minister Narendra Modi stated that cooperation would deepen across:
- Connectivity
- Security
- Sustainability
- Supply chain resilience
- Capacity building
Trade Target of $25 Billion by 2030
Both sides agreed to:
- Expand market access
- Strengthen supply chains
- Facilitate trade in agricultural and pharmaceutical products
South China Sea and UNCLOS
Both countries reaffirmed commitment to:
- Freedom of navigation
- Peaceful dispute resolution
- Non-militarisation
- UNCLOS principles
They also supported an early conclusion of the South China Sea Code of Conduct.
Agreements Signed
A total of 13 agreements were signed covering:
- Digital payments and QR-based transactions
- Rare earth minerals
- Urban governance
- AI and 6G
- Space cooperation
- Digital Public Infrastructure
The RBI and State Bank of Vietnam also signed an MoU on digital payment connectivity.
Significance for India
Vietnam is a crucial pillar of:
- India’s Act East Policy
- Indo-Pacific strategy
- Supply chain diversification efforts
The partnership strengthens:
- ASEAN engagement
- Maritime cooperation
- Strategic balancing in the Indo-Pacific
It also supports India’s efforts to emerge as a trusted development and security partner in Southeast Asia.
Conclusion
India–Vietnam relations have evolved from historical solidarity to a multidimensional strategic partnership. The elevation to an “Enhanced Comprehensive Strategic Partnership” reflects deepening convergence in trade, defence, connectivity, and Indo-Pacific security. As both countries navigate an increasingly uncertain geopolitical environment, the partnership is expected to play a major role in shaping a stable, rules-based, and multipolar Indo-Pacific order.