India and Vietnam on Wednesday raised their ties to an enhanced comprehensive strategic partnership and set a target of boosting trade to $25 billion by 2030 as Prime Minister Narendra Modi and Vietnam President To Lam held talks focused on expanding cooperation in trade, defence, and critical minerals.
Lam arrived in India within a month of becoming president of Vietnam, which has emerged as an important security and trade partner for India in Southeast Asia. He is accompanied by several ministers and a large business delegation and will also travel to the financial hub of Mumbai to bolster two-way commerce, which has doubled over the past decade to almost $16 billion.
During the meeting between Modi and Lam, the two sides concluded 13 agreements to drive cooperation in areas ranging from critical minerals and pharmaceuticals to digital payments and technologies.
Modi noted at a joint media interaction that Vietnam had become India’s first comprehensive strategic partner in the Association of Southeast Asian Nations (ASEAN) region a decade ago, and said: “Building on this strong foundation, today we are elevating our relations to the level of an enhanced comprehensive strategic partnership.”
This will bolster cooperation in connectivity, security, sustainability, and supply chain resilience. The two sides decided to increase bilateral trade to $25 billion by 2030, and a memorandum of understanding (MoU) between the drug authorities will increase access to Indian medicines in Vietnam, he said.
{{/usCountry}}This will bolster cooperation in connectivity, security, sustainability, and supply chain resilience. The two sides decided to increase bilateral trade to $25 billion by 2030, and a memorandum of understanding (MoU) between the drug authorities will increase access to Indian medicines in Vietnam, he said.
{{/usCountry}}“Exports of Indian agricultural, fisheries, and animal products to Vietnam are also set to become easier. Very soon, Vietnam will taste India’s grapes and pomegranates, and we will taste Vietnam’s durians and pomelos,” Modi said. At the same time, new initiatives in critical minerals and energy cooperation will ensure economic security and supply chain resilience.
Lam said bilateral ties were elevated on the basis of strategic convergence, and the two sides will deepen political trust and economic cooperation through value chain connectivity, removal of barriers, and expansion of market access.
“India has been soaring ahead as a centre of growth and innovation in the world,” Lam said.
“We would link together our strategic visions and development strategies to better address the turmoil in the situation of the world today.”
“We will elevate defence and security cooperation to become a strategic pillar to contribute to strengthening an environment of peace and stability,” he said. Without directly referring to the South China Sea, Lam said the two sides backed freedom of navigation and overflight and the peaceful resolution of disputes.
Modi described Vietnam as a key pillar of India’s Act-East policy and said the two sides share a common outlook in the Indo-Pacific. “Through our strengthened defence and security cooperation, we will continue to contribute to the rule of law, peace, stability, and prosperity,” he said.
Vietnam backs India taking on a greater role at multilateral forums and would like to work more closely together in addressing common challenges facing the region, Lam added.
The two sides also backed the review of the ASEAN-India Trade in Goods Agreement (AITIGA) by the end of the year to provide new impetus to trade and investment.
Modi thanked Vietnam for its strong condemnation of last year’s Pahalgam terror attack and for standing with India in the fight against terrorism.
“To boost financial connectivity, we have today decided to enhance cooperation between our central banks. India’s UPI and Vietnam’s fast payment systems will soon be linked. Furthermore, we are strengthening state-to-state and city-to-city cooperation between the two countries,” he noted.
Among the 13 agreements concluded by the two sides was an MoU on cooperation in critical minerals between IREL (India) Ltd and the Institute for Technology of Radioactive and Rare Elements (ITRRE) of Vietnam; an MoU between the Reserve Bank of India (RBI) and the State Bank of Vietnam (SBV) on cooperation in payment systems and digital payments; an MoU between the Central Drugs Standard Control Organization (CDSCO) of India and the Drug Administration of Vietnam on cooperation in pharmaceuticals and medical devices; an MoU between the Ministry of Electronics and Information Technology of India and the Ministry of Science and Technology of Vietnam on cooperation in digital technologies; and an MoU between NPCI International Payments Limited (NIPL) and the National Payment Corporation of Vietnam (NAPAS).
P. Kumaran, secretary (East) in the external affairs ministry, told a media briefing that the MoU on cooperation in critical minerals underscores the importance both countries attach to supply chain resilience and diversification. “India also thanked Vietnam for its invitation to participate in Vietnam’s nuclear power sector,” he said.
The cross-border connectivity of digital payments will benefit tourists and businesses, and the MoU between CDSCO and the Drug Administration of Vietnam will facilitate market access for Indian pharmaceutical companies and ensure access to affordable and quality Indian medical products for the people of Vietnam, Kumaran said.
Kumaran responded to a question on the possible sale of the BrahMos missile system to Vietnam by saying: “We do talk about a number of platforms, and the BrahMos platform is also one of them.”
The two sides are looking at instituting a 2+2 dialogue of the foreign and defence ministries, and also pursuing an agreement on white shipping information-sharing, cybersecurity, and AI-enhanced security measures, he said.
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