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India and Vietnam Discuss Enhanced Cooperation amidst Regional Challenges

  • 17 Oct 2023

On 16th October, 2023, Indian External Affairs Minister met with his Vietnamese counterpart to explore opportunities for collaboration in trade, energy, defence, and maritime security.

Key Points

  • Commemorative Stamps Mark Diplomatic Milestone: During the meeting, Indian External Affairs Minister and his Vietnamese counterpart jointly unveiled commemorative stamps commemorating the 50th anniversary of diplomatic relations between India and Vietnam.
  • These stamps portray the Indian martial art Kalaripayattu and Vietnam's martial art Vovinam, symbolizing the shared passion for sports and highlighting the strong cultural and people-to-people ties between the two nations.
  • 18th India-Vietnam Joint Commission Meeting: Discussions during the meeting encompassed various aspects of cooperation, including defence, maritime security, judiciary, trade, investment, energy, development, education, training, science, technology, and culture.
  • Comprehensive Strategic Partnership: Both ministers expressed their confidence in the enduring strength of the Comprehensive Strategic Partnership between India and Vietnam.
  • They also exchanged perspectives on the Indo-Pacific region and reaffirmed their commitment to global issues, emphasizing their collaboration in diverse multilateral forums.
  • Indo-Pacific Region's Significance: The Indo-Pacific region, comprising the Indian Ocean, the western and central Pacific Ocean, and the South China Sea, holds vital geopolitical and economic importance.
  • The U.S., India, and other global powers have been engaged in discussions aimed at ensuring the Indo-Pacific remains free, open, and prosperous. These discussions have gained prominence due to China's increasing military activities in the region.

India -Vietnam Bilateral Relations

Trade

  • Bilateral trade reached approximately USD 14.7 billion in FY 2022, with significant growth.
  • India's exports to Vietnam surged by 34% to USD 6.70 billion, while imports from Vietnam rose by 21% to USD 7.44 billion during April 2021-March 2022.
  • Key Vietnamese exports to India include mobile phones, computers, chemicals, coffee, and cashew.
  • Primary Indian exports to Vietnam are iron and steel products, textile materials, pharmaceuticals, and auto spare parts.

Economic Relations and Investments

  • India's investments in Vietnam amount to approximately USD 1.9 billion, covering sectors like energy, agriculture, IT, and more.
  • India ranks 8th among Vietnam's trading partners, while Vietnam stands as India's 15th largest trading partner and the fourth in Southeast Asia.

Science and Technology

  • Bilateral cooperation in science and technology is robust, with agreements on space exploration, IT, cyber security, and atomic energy.
  • Information Technology offers growth potential, attracting Indian companies providing solutions in banking, telecom, and cybersecurity.

Educational and Training Exchanges

  • Vietnam participates in India's Technical and Economic Cooperation (ITEC) program, with over 200 participants annually.
  • Vietnamese students receive scholarships from the Indian Council of Cultural Relations, and a PhD fellowship program for ASEAN countries garners strong Vietnamese response.

Defence Partnership

  • A new "Joint Vision Statement on India-Vietnam Defence Partnership towards 2030" and a "Memorandum of Understanding on Mutual Logistics Support" were signed during India's Defence Minister's visit in June 2022.
  • Military-to-military dialogue, training programs, bilateral exercises, and cooperation in UN Peacekeeping Operations are active areas of collaboration.

Cultural and Academic Cooperation

  • The Swami Vivekananda Indian Cultural Centre (SVCC) in Hanoi promotes cultural exchanges, offering programs in various areas like Yoga, classical dance, and more.
  • Both countries foster exchanges at the provincial, academic, and thinktank levels.

Tourism and People Exchanges

  • A simplified visa regime, commemorative events, and programs like the International Day of Yoga strengthen tourism and cultural ties.
  • Artificial limb fitment programs and Yoga Day celebrations have deepened people-to-people connections.

Indian Community in Vietnam

  • Nearly 6,000 Indians, including professionals, reside in Vietnam, primarily in Ho Chi Minh City.
  • Indian businesses like ONGC Videsh Limited, Bank of India, Bharat Electronics Limited, and more operate in Vietnam, contributing to economic ties.