The India-Vietnam relations have recently been in the news due to some Defense Agreements signed between both countries. This move is expected to significantly enhance the scope and scale of existing defense cooperation. This year also marks the 50th anniversary of the establishment of bilateral diplomatic relations between India and Vietnam.
Moreover, the two nations earlier signed a Letter of Intent (LOI) to collaborate in the field of digital media. This collaboration will bolster the partnership between these two countries.
Recent Visit Highlights: Strengthening Defense Partnership
On his recent visit to Vietnam, the Indian Defence Minister was involved in several key decisions. Both the Defense Ministers signed the ‘Joint Vision Statement on India-Vietnam Defence Partnership towards 2030’. This important document aims to strengthen bilateral defense cooperation.
They also agreed on the finalisation of the USD 500 million Defence Line of Credit extended to Vietnam. This implementation will add to Vietnam’s defense capabilities and align with the Indian government’s ‘Make in India, Make for the World’ vision.
A Memorandum of Understanding (MoU) was signed by both ministers on Mutual Logistics Support. This is a significant step towards simplifying procedures for mutually beneficial logistic support. Furthermore, India decided to gift two simulators and a monetary grant towards setting up a Language and IT Lab at the Vietnamese Air Force Officers Training School.
The Background of India-Vietnam Relations
While defence cooperation has been a prominent pillar of the Comprehensive Strategic Partnership initiated in 2016, the relationship between the two countries dates back to even earlier. India had established the Consul General’s office in Hanoi in 1956 while Vietnam set up its diplomatic mission in India in 1972. India backed Vietnam in opposing US intervention in that country even at the cost of upsetting Indo-US relations.
The bond was further strengthened when India initiated its “Look East Policy” during the early 1990s. The major objective behind this was to integrate politically and economically with Southeast Asia and East Asia.
Areas of Cooperation: Strengthening Economic and Defense Cooperation
India and Vietnam have agreed to enhance their strategic partnership in line with India’s Indo-Pacific Oceans Initiative (IPOI) and the ASEAN’s Outlook on Indo-Pacific. The goal is to achieve shared security, prosperity, and growth for all in the region.
Trade and economic relations between the countries have improved significantly over the years, especially after the ASEAN-India Free Trade Agreement was signed. Both nations realise the potential of one another, with Vietnam being a regional power in South-East Asia, and India offering development and capacity assistance. Bilateral trade between India and Vietnam reached USD 11.12 billion in the FY April 2020 – March 2021.
While Vietnam aims to modernise its armed forces, India is interested in developing defence capabilities of its South-East Asian partners to maintain peace in the strategic region. Defense relations include capacity building, dealing with common security concerns, training of personnel and cooperation in defense R&D.
The Impact of China and Cooperation at Multiple Fora
The China factor plays a vital role in the strategic planning of both India and Vietnam. As both countries have faced disputes with China, they naturally want to strengthen their ties to restrain China’s aggressive actions.
At the UN Security Council, both countries serve as non-permanent members in 2021. India and Vietnam closely cooperate in various regional forums such as the East Asia Summit, Mekong Ganga Cooperation, and Asia Europe Meeting (ASEM).
People-to-People Contacts & Future Steps
In 2019, both countries took steps to promote bilateral tourism by simplifying visa regimes. Cultural connections were also celebrated with events marking Mahatma@150 in Vietnam. India’s ‘India for Humanity’ initiative also reached the people of Vietnam, benefitting many.
As India and Vietnam lie at the heart of the emerging Indo-Pacific construct, strengthening ties will be crucial moving forward. This strategic partnership aligns perfectly with India’s ‘Act East’ Policy, focusing on mutual growth and inclusiveness in the region. It is hoped that the strengthening ties will move towards realising the SAGAR (Security and Growth all in the region) initiative as proposed by the Indian PM.
